The European cannabis scene is getting more and more interesting with markets like the U.K., Germany, Denmark, Portugal and the Netherlands expanding in terms of the diversity of products and players. Germany made headlines this past Friday when it took a historic step towards cannabis legalization. Approvals from both the German Bundesrat and Bundestag legalized the possession of marijuana as of April 1.
Cannabis companies already established in Germany celebrated the move. Village Farms International, Inc. VFF was among the first, which comes as no surprise as the stage is practically set for Canadian exporters to capture their fair share of the German cannabis market which, by the way, is projected to expand to €1.7 billion by 2025.
CEO and co-founder Michael DeGiglio, who along with dozens of other top CEOs, executives and industry stakeholders will speak at the upcoming Benzinga Cannabis Capital Conference on April 16-17, celebrated the milestone.
"Village Farms has a strong link to the German market, having received our EU GMP certification from the District Government of Dusseldorf in 2022," DeGiglio said in a press release on Friday. "We began shipping our best-selling Canadian strains to Germany in the second quarter of 2023 and have been adding both local distributors and revenues since then. The German cannabis market is already core to Village Farms' international cannabis strategy and, along with our participation in the Netherlands' legal recreational cannabis program, central to our focus on legal cannabis opportunities in Europe."
See also: Village Farms International Launches Its Cannabis Products In Germany
DeGiglio knows his business, as Village Farms just reported a remarkable year with record fourth-quarter sales, marking a significant year-over-year increase.
As Benzinga's Nicolás Jose Rodriguez recently noted, Village Farm's valuation is attractive, trading at 0.5x EV/current sales overall, with its cannabis unit valued at 3.3x EBITDA based on CY25 estimates. This valuation reflects the company’s sustained high EBITDA margins in the high teens, showcasing strong operational efficiency and consistent free cash flow generation.
VFF Price Action
Village Farms' shares traded 0.9806% higher at $1.0401 per share at the time of writing on Monday morning.
Related news: What’s Going On With Marijuana Stocks Tilray And Canopy Growth As Germany Legalizes Pot?
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 is 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 bzcannabis.com – Prices will increase very soon!
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
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 bzcannabis.com – Prices will increase very soon!