Village Farms Q1 FY23 Sales Decline 8% YoY, What About Adjusted EBITDA?

Village Farms International, Inc. VFF released its financial results for the first quarter ended March 31, 2023, revealing sales decreased 8% year-over-year to $64.7 million from $70.2 million.

Q1 2023 Financial Highlights

• Gross margin was $12.3 million compared to $9.9 million in Q1 2022.

• Net loss was ($6.6 million), or ($0.06) per share, compared with ($6.5 million), or ($0.07) per share in Q1 2022.

• Adjusted EBITDA, improved to $519,000 from negative $6.1 million in Q1 2022.

• The Pure Sunfarms revolving and non-revolving credit facilities were extended to a maturity date of February 7, 2026 under the same terms, conditions and covenants as the original facilities maturing on February 7, 2024.

“The first quarter was a solid start to 2023 as continued strong growth in our Canadian cannabis business and steady sequential performance in our US cannabis business were complemented by another quarter of significantly improved results in our fresh produce business,” stated Michael DeGiglio, CEO, Village Farms.

“Our Canadian Cannabis business delivered 40% year-over-year growth in retail branded sales for the first quarter, once again significantly outpacing overall market growth, as we maintained our number two market share position nationally and were one of just three of the top 10 producers to expand market share from the same period last year. Combined with our ongoing focus on production efficiency and cost management, we achieved our 18th consecutive quarter of positive adjusted EBITDA, with a year-over-year increase of 95%.”

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Photo by Esteban López on Unsplash

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