Village Farms International, Inc. (NASDAQ:VFF) (TSX:VFF) announced its financial results for the first quarter ended March 31, 2022.
"The first quarter of 2022 once again demonstrated the strength and earnings power of both our Canadian and U.S. Cannabis businesses," Michael DeGiglio, the company's CEO, said. "We expect continued momentum throughout 2022 and beyond as each of our cannabis businesses continues to launch innovative new products that address evolving consumer demand. We remain focused on seizing opportunities to continue to deliver top-tier profitability and market share in the high-growth global cannabis market."
Q1 2022 Financial Highlights
- Consolidated sales increased 34% year-over-year to $70.2 million from $52.4 million.
- Consolidated net loss was $6.5 million, or $0.07 per share, compared with $7.4 million, or $0.10 per share in the same quarter of 2021.
- Consolidated adjusted EBITDA came in negative at $6.1 million, compared with a positive adjusted EBITDA of $0.4 million, in the prior year's quarter.
- Total cannabis segment net sales increased 65% year-over-year to $28.8 million, representing 41% of total Village Farms sales.
- Total cannabis segment adjusted EBITDA increased 9% year-over-year to $2.7 million.
- Canadian cannabis net sales increased 25% year-over-growth with a gross margin of 34%, within the company's stated target range, and adjusted EBITDA of $2.1 million (CA$2.7 million).
- Canadian cannabis business contributed a record 14th consecutive quarter of positive adjusted EBITDA.
- U.S. cannabis net sales were $7 million, with a gross margin of 67% and adjusted EBITDA of $0.6 million.
Strategic Growth & Operational Highlights
- Pure Sunfarms received EU GMP certification for its 1.1 million square foot Delta 3 cannabis production facility, permitting Pure Sunfarms to export EU GMP-certified medical cannabis to importers and distributors in international markets that require EU GMP certification.
- Pure Sunfarms launched 29 new SKUs across four product categories and remained the top-selling brand of dried flower products in key markets of Ontario, Alberta, and British Columbia.
- Based on third-party data, it is estimated Rose LifeScience is a top-three Licensed Producer in Quebec.
- The integrations of Balanced Health Botanicals (acquired in the third quarter of 2021) and Rose LifeScience (acquired in the fourth quarter of 2021) are proceeding well. Each company expanded its product offerings in the first quarter of 2022.
- Balanced Health's brand, CBDistillery, launched its hemp extract in more than 1,000 Pet Smart stores in the U.S. through its partnership with leading pet supplement brand, Zesty Paws.
- Rose launched 14 new cannabis SKUs, and shipments of its own brands increased 85% compared to the fourth quarter of 2021.
Photo: Courtesy of Chris Briggs on Unsplash
