Village Farms International, Inc VFF reported fourth-quarter sales of $82.55 million on Thursday. That’s up 11% year-over-year, beating the consensus of $79.87 million.
Fourth quarter and full year 2024 consolidated financial results were impacted by a $10.5 million non-cash impairment charge related to non-flower inventory in Canadian Cannabis that management determined did not meet the company’s quality standards.
Consolidated adjusted EBITDA loss was $3.5 million compared with $700,000 a year ago. Excluding the inventory write-down in Canadian Cannabis, adjusted EBITDA would have been $7 million.
The cannabis company reported a loss of 8 cents per share, missing the consensus loss of 2 cents.
Canadian Cannabis sales increased 10% to CA$48 million. Retail branded sales decreased by 1%, international medicinal sales increased by 127%, and non-branded (wholesale) sales increased by 20%.
U.S. Cannabis sales were $4.6 million compared with $5.1 million, and Village Farms Fresh sales increased 17% to $43.3 million from $37.1 million.
Fourth quarter results were impacted by a non-cash impairment of inventory related to non-flower, manufactured product purchased primarily from third parties, CEO Michael DeGiglio explained.
“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,” DeGiglio added.
The company hopes to optimize its Canadian Cannabis resources to improve operational efficiencies between thePure Sunfarms and Rose subsidiaries in 2025.
Village Farms has also broken ground on a Phase II expansion at its Leli Holland subsidiary in the Netherlands. The project in Groningen is expected to be complete in Q4 of this year and quintuple our annual production capacity.
Price Action: VFF stock is down 1.41% at 68 cents at the last check Thursday.
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