Village Farms Earnings + Call Notes

Canadian standout with a global reach.

Village Farms Earnings

$82.6M Revs; est. $80.6M
($3.5 M) AEBITDA; est. $3.5M*
$6.9M GP; est. $15.2M
8.35% GM; est. 18.8%
($8.2M) NI; est. ($2.6M)
($0.08 ) EPS; est. ($0.02)

Full Year Consolidated Sales Grew 18% YoY to $336.2M

2024 Canadian Cannabis Sales Grew 31% YoY; Retail Branded Sales Grew 23%

#1 Market Share in Dried Flower, #2 in Pre-Rolls, #3 Market Share Overall in 2024

Full Year Consolidated Cash Flow from Operations of $10.3M

Q4 Consolidated Sales Grew 11% Year-over-Year to $82.6M

Q4 International Sales Increased 113% YoY; Expect Int’l Sales to Triple in 2025

Q4 AEBITDA Impacted by Non-Cash, Non-Flower Inventory Impairment of $10.5 Million

^ excluding CDN cannabis write down AEBITDA = $7M.

Company Breaks Ground on Phase II Expansion in the Netherlands to Quintuple Annual Production Capacity; Expected Completion in Q4 2025

“Over the past three years we’ve organically grown our CDN Cannabis business into a perennial market share leader and one of the only operators with a track record of positive cash flow from operations. Today’s results reflect a continuation of these trends and demonstrate ongoing efforts to align our resources and inventory toward more profitable growth opportunities both at home and internationally.”

“Fourth quarter saw continued strong performance from CDN Cannabis, however, results were impacted by a non-cash impairment of inventory related to non-flower, manufactured product purchased primarily from third parties. Excluding this impact, Canadian Cannabis gross margin and Adjusted EBITDA margin in Q4 were 33% and 12%, respectively.

US Cannabis and Fresh Produce also closed the year on a strong note, contributing to full year cash flow from operations of $10.3 million. This performance, combined with an improved balance sheet and healthy inventory position make us confident we’re starting 2025 with good momentum to execute our profitable growth strategy.”

“We remain pleased with our pace of international sales growth, which has been driven largely by continued strength in Germany, as well as increased volumes in Australia and the UK. We have now shipped to five international markets with the recent addition of New Zealand, and believe we have a strong pipeline of potential new customers and market opportunities which give us confidence in our ability to triple international medicinal export sales in 2025.”

“We’re in the process of optimizing our CDN Cannabis resources to improve our operational efficiencies between our Pure Sunfarms and Rose subsidiaries in 2025, and we are also excited to announce that we have broken ground on a Phase II expansion at our Leli Holland subsidiary in the Netherlands. Our Phase II project in Groningen is a brand new, state-of-the-art indoor facility which we expect will be complete in Q4 of this year and quintuple our annual production capacity.”

“We’re focused on establishing a global leadership position in regulated cannabis and we’re pleased to begin 2025 with several meaningful developments to position us for a transformational year in pursuit of this objective. We believe we are well positioned to execute and deliver a successful year of profitable growth in 2025 and beyond.”

President and Chief Executive Officer Michael DeGiglio 🫡

Call Notes