Village Farms Q3 Sales Decrease Slightly YoY, What About Adjusted EBITDA?

Zinger Key Points
  • Canadian cannabis retail branded sales increased 46% year-over-year and 26% sequentially
  • Canadian cannabis business achieved 16th consecutive quarter of positive adjusted EBITDA.

Village Farms International, Inc. VFF VFF released its financial results for the third quarter ended September 30, 2022. revealing consolidated sales were $71.1 million, a 2% decrease compared to $72.4 million in Q3 2021.

Q3 2022 Financial Highlights

  • Consolidated net loss was $8.7 million, or ($0.10) per share compared with net income of $745,000, or $0.01 per share in Q3 2021.

  • Consolidated adjusted EBITDA was negative $2.2 million compared with positive adjusted EBITDA of $6.9 million in Q3 2021.

  • Gross margin was $8.4 million compared to $17.7 million in Q3 2021.

Management Commentary

"The strong performance in our Canadian cannabis business in the third quarter reflects the successful execution of our growth strategy and investments as we achieved another sales record, outstanding growth in retail sales, and our 16th consecutive quarter of positive adjusted EBITDA," stated Michael DeGiglio, CEO, Village Farms. "Our growth in retail branded sales continues to be driven by multiple factors. Pure Sunfarms, which remains the best-selling dried flower-brand nationwide, grew market share with consumer-preferred innovations.”

“We launched the first SKUs in our new brand targeting the value segment of the market, The Original Fraser Valley Weed Co., which has already contributed to expanding our number one dried flower market share positions in BC and Alberta. In Quebec, Rose LifeScience became the number two selling licensed producer in October, less than one year after our majority acquisition, as it launched new products across its brands, including the highly successful Promenade brand in collaboration with Pure Sunfarms. All of this contributed to Village Farms becoming the number one selling cannabis company in Canada across all product categories in October," continued DeGiglio.

Completion of Continuance into the Province of Ontario

On November 9, 2022, the company completed its continuance from the Canada Business Corporations Act into the Province of Ontario under the Business Corporations Act (Ontario). The continuance was approved by the company's shareholders at the company's annual and special meeting of shareholders held on May 24, 2022. As a result of the continuance, the company is now governed by the OBCA.

Get your daily dose of cannabis news on Benzinga Cannabis. Don’t miss out on any important developments in the industry.

Photo by Richard T on Unsplash

Related News

What's Going On With Recreational Cannabis Sales In Canada? Analyst Examines The Situation

Want Exposure To The Canadian Recreational Cannabis Market? These Are The 3 Best Picks, According To A Cantor Analyst

Market News and Data brought to you by Benzinga APIs
Actual EPS
EPS Surprise
Actual Rev
Rev Surprise
Posted In: CannabisEarningsNewsPenny StocksMarketsMichael DeGigliopremiumPure SunfarmsRose Lifescience
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!

The Benzinga Cannabis Capital Conference is coming to Florida

The Benzinga Cannabis Capital Conference is returning to Florida, in a new venue in Hollywood, on April 16 and 17, 2024. The two-day event at The Diplomat Beach Resort will be a chance for entrepreneurs, both large and small, to network, learn and grow. Renowned for its trendsetting abilities and influence on the future of cannabis, mark your calendars – this conference is the go-to event of the year for the cannabis world.

Get your tickets now on – Prices will increase very soon!