No Seeds, No Stems, No Sticks. Just Green for Village Farms as They Blaze Through Year- Over-Year Metrics on Earnings

The agricultural greenhouse operator Village Farms International (VFF) announced first quarter financials today, before the open. Q1 EPS ($0.03) vs FactSet ($0.02) but beat on revenue $78.1M vs FactSet $71.4M as well as adjusted EBITDA $3.6M vs FactSet $1.8M.

Many positive year-over-year metric improvements were cited as revenues were up 21%, net loss improved by $3.7M ($2.9M from $6.6M), EPS increased $0.03, and adjusted EBITDA increased significantly from $0.5M to $3.6M. The Canadian cannabis segment also grew as sales rose 49% and its fresh produce operations sales increased by 4%. However, its US cannabis operations experienced a net loss of $0.7M. Management noted the company is “on target” to start production in the Netherlands this year as it holds one of 10 licenses permitting it to legally produce and distribute recreational cannabis in the country.

The stock is modestly up ~3% on the report and has come slightly under pressure over the past month, trading down ~3%. However, semi-long-term returns are still high and dazing investors as YTD returns are up 63%. PRISM MarketView has previously featured this PRISM Cannabis Index company on its recent successes. As the year progresses, investors are hoping their shares do not go up in smoke. However, with catalysts on the horizon, it will be a name to watch as Canadian tax legislation continues to swirl and Village Farms starts production in the Netherlands.

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No Seeds, No Stems, No Sticks. Just Green for Village Farms as They Blaze Through Year- Over-Year Metrics on Earnings

Ashlee Vogenthaler

Markets Editor