Full Year 2024 and Recent Business Highlights
Full Year Consolidated Sales Grew 18% Year-over-Year to $336.2 Million
2024 Canadian Cannabis Sales Grew 31% Year-over-Year; Retail Branded Sales Grew 23%
#1 Market Share in Dried Flower, #2 in Pre-Rolls, and #3 Market Share Overall in 2024
Full Year Consolidated Cash Flow from Operations of $10.3 Million
Q4 Consolidated Sales Grew 11% Year-over-Year to $82.6 Million
Q4 International Sales Increased 113% Year-over-Year; Expect International Sales to Triple in 2025
Q4 Adjusted EBITDA Impacted by Non-Cash, Non-Flower Inventory Impairment of $10.5 Million
Company Breaks Ground on Phase II Expansion in the Netherlands to Quintuple Annual Production Capacity; Expected Completion in Q4 2025
VANCOUVER, British Columbia, March 13, 2025 (GLOBE NEWSWIRE) — Village Farms International, Inc. (“Village Farms” or the “Company”) (NASDAQ:VFF) today reported its financial results for the fourth quarter and year ended December 31, 2024 and commented on its ongoing initiatives to drive profitable growth in fiscal year 2025. All figures are in U.S. dollars unless otherwise indicated.
Fourth quarter and full year 2024 consolidated financial results were impacted by a $10.5 million (C$15.0 million) non-cash impairment charge related to non-flower inventory in Canadian Cannabis that management determined did not meet the Company’s quality standards. Excluding this impact, fourth quarter and full year consolidated Adjusted EBITDA would have been $7.0 million and $12.2 million, respectively.
Management Commentary
President and Chief Executive Officer Michael DeGiglio commented, “Over the past three years we have organically grown our Canadian 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 our 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 Canadian 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 of demand 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 are in the process of optimizing our Canadian Cannabis resources to improve 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 are focused on establishing a global leadership position in regulated cannabis, and we’re pleased to begin 2025 with several meaningful developments that position us for a transformational year in our pursuit of this objective. We believe we are well positioned to execute and deliver a successful year of profitable growth in 2025 and beyond.”
Fourth Quarter 2024 Financial Highlights
(All comparable periods are for the fourth quarter of 2023 unless otherwise stated)
Consolidated Results
Note: Fourth quarter 2024 Consolidated Results were impacted by a $10.5 million non-cash impairment charge related to non-flower inventory in Canadian Cannabis that did not meet the Company’s quality standards.
Consolidated sales increased 11% to $82.6 million from $74.2 million;
Consolidated cash flow from operations improved $1.9 million to $0.4 million compared with ($1.5 million).
Consolidated adjusted EBITDA (a non-GAAP measure) was ($3.5 million) compared with ($0.7 million).
Excluding the inventory write down in Canadian Cannabis, adjusted EBITDA would have been $7.0 million;
Consolidated net loss improved 66% to ($8.6 million), or ($0.08) per share from ($25.5 million), or ($0.23) per share.
Canadian Cannabis
Note: Fourth quarter 2024 Canadian Cannabis Results were impacted by a $10.5 million (C$15.0 million) non-cash impairment charge related to non-flower inventory that did not meet the Company’s quality standards.
Net sales increased 10% to C$48.0 million from C$43.6 million;
Retail branded sales decreased 1%, international medicinal sales increased 127%, non-branded (wholesale) sales increased 20% (in Canadian dollars);
Gross margin was 2% compared with 23%; (in Canadian dollars). Fourth quarter 2024 gross margin was impacted by a C$15.0 million non-cash impairment of non-flower inventory that did not meet the Company’s quality standards. Excluding the inventory impairment, gross margin was 33% (in Canadian dollars);
Net loss was (C$9.4 million) compared with (C$1.3 million);
Adjusted EBITDA was (C$9.1 million) compared with (C$2.1 million). Excluding the inventory impairment, adjusted EBITDA was C$5.9 million;
Cash flow from operations was (C$3.3 million) compared with (C$1.6 million). Cash flow from operations in the fourth quarter was negatively impacted by the timing of Q3 2024 excise tax payments of C$24.1 million and Q4 2024 excise tax payments of C$20.7 million, both of which occurred during the fourth quarter.
U.S. Cannabis (Balanced Health Botanicals)
Net sales were $4.6 million compared with $5.1 million;
Gross margin was 70% compared with 66%;
Net loss was ($0.2 million) compared with ($13.7 million);
Adjusted EBITDA was $0.3 million compared with $0.4 million.
Village Farms Fresh (Produce)
Sales increased 17% to $43.3 million from $37.1 million;
Net income was $1.9 million compared with a net loss of ($7.0 million). Net income was favorably impacted by $3.5 million in Other Income attributable to vendor settlements relating to the partial recovery of previous operational losses from the Tomato Brown Rugose Fruit Virus (“ToBRFV”);
Adjusted EBITDA was $4.1 million compared with ($0.6) million.
Other Business & Operational Highlights
Canadian Cannabis
Remained a top three producer in Canada and was second fastest growing producer organically year-over-year1
Further expanded number one national market share position in dried flower1;
Held number two national market share position in the pre-roll category for 20242;
Held number two market share in the provinces of Ontario and Quebec for 20242;
Launched Super Toast All-In-One Vape in Q4, combining “grab n’ go” functionality with classic fountain-inspired flavours and a built-in USB-C rechargeable battery and auto-draw functionality;
Launched The Canna Czar presented by Soar in Q4, a 2.1g specialty twax blunt with unique construction, premium ingredients, and handcrafted process align with Soar’s tastemaker method, which emphasizes innovation and quality;
Recently began implementing operational improvement initiatives across Pure Sunfarms and Rose subsidiaries, optimizing resources toward more profitable growth opportunities.
1. For the fourth quarter of 2024. Based on estimated retail sales from HiFyre, other third parties and provincial boards.
2. Based on estimated retail sales from HiFyre, other third parties and provincial boards.
International Cannabis (Reported Within Canadian Cannabis)
International sales increased 113% year-over-year in the fourth quarter with continued growth in shipment volumes to Australia, Germany and the United Kingdom;
Currently hold the #1 and #4 cultivars in the German market through third-party distributors1;
Subsequent to year end 2024, expanded international medical cannabis distribution to New Zealand through a supply agreement with Medleaf Therapeutics, an established New Zealand-based medical cannabis company with a comprehensive distribution network.
1. Based on estimates from Flowzz.
U.S. Cannabis
The ongoing Administrative Law Judge (ALJ) hearings regarding the proposed rescheduling of marijuana from a Schedule I to a Schedule III drug under the Controlled Substances Act are currently stayed pending an interlocutory appeal granted by the ALJ to resolve the Company’s alleged improper ex parte communications by DEA. The Company is continuing to work to ensure a fair and transparent process and remains a strong proponent of Schedule III;
Subsequent to year end 2024, Balanced Health Botanicals’ CBDistilleryTM announced that its full range of hemp-derived gummies are now manufactured in-house at its GMP-certified facility south of Denver, Colorado. Internalization of manufacturing is expected to enable greater innovation, operational flexibility, and inventory control in the future;
The Company’s application for a Texas medicinal marijuana license remains pending review by the Department of Public Services. If awarded, the Company plans to work with its listing authority to structure an acceptable ownership structure.
Leli Holland
Completed its first harvest from its indoor cannabis production facility in Drachten, Netherlands in December 2024 and began deliveries of cannabis to Dutch coffeeshops in February 2025, consistent with the Company’s previously-disclosed timeline to commencement of sales;
Subsequent to year end 2024, the Company broke ground on a Phase II indoor cultivation facility in the town of Groningen. The Phase II facility is expected to be complete in Q4 2025 and quintuple annual production capacity.
VF Fresh (Produce)
Continued improvement in our Texas greenhouse operations resulting in a year-over-year decrease in cost per pound due to ongoing labor efficiencies and increased yields;
Implementing new cultivation technologies, including artificial intelligence, to drive further operational improvements.
Village Farms Clean Energy
In April 2024, the Delta, British Columbia Renewable Natural Gas Project began operations, which immediately began contributing incremental profit to the Company;
During the fourth quarter and full year 2024 periods, Village Farms Clean Energy produced net income of $0.4 million and $0.8 million, respectively, through royalty payments received from its clean energy partner.
Canadian Cannabis Performance Summary
Note: Performance for the three months and year ended December 31, 2024 includes the impact of a $10.5 million (C$15.0 million) non-cash impairment charge related to non-flower inventory that did not meet the Company’s quality standards.
(millions except % metrics)
Three Months Ended December 31,
2024
2023
CAD $
USD $
CAD $
USD $
Change of C $
Total Net Sales
$
48.0
$
34.2
$
43.6
$
32.0
10
%
Total Cost of Sales
$
47.0
$
33.3
$
33.7
$
25.2
39
%
Gross Profit
$
1.0
$
0.9
$
9.9
$
6.8
-90
%
Gross Margin %
2
%
3
%
23
%
21
%
-91
%
SG&A
$
13.4
$
9.6
$
10.2
$
7.0
31
%
Net loss
$
(9.4)
$
(6.6)
$
(1.3)
$
(1.0)
623
%
Adjusted EBITDA(1)
$
(9.1)
$
(6.4)
$
2.1
$
1.5
-533
%
Adjusted EBITDA Margin(1)
-19
%
-18
%
5
%
5
%
-494
%
Cash flow from Operations
$
(3.3)
$
(2.6)
$
1.6
$
1.1
-306
%
(millions except % metrics)
Year Ended December 31,
2024
2023
CAD $
USD $
CAD $
USD $
Change of C $
Total Net Sales
$
204.0
$
148.9
$
154.0
$
114.0
32
%
Total Cost of Sales
$
162.4
$
118.2
$
104.8
$
78.1
55
%
Gross Profit
$
41.6
$
30.7
$
49.2
$
35.9
-15
%
Gross Margin %
20
%
21
%
32
%
31
%
-36
%
SG&A
$
46.7
$
34.0
$
40.2
$
29.3
16
%
Net (loss) income
$
(4.8)
$
(3.2)
$
4.0
$
2.9
-220
%
Adjusted EBITDA(1)
$
9.4
$
7.3
$
20.0
$
14.8
-53
%
Adjusted EBITDA Margin(1)
5
%
5
%
13
%
13
%
-65
%
Cash flow from Operations
$
16.1
$
11.7
$
18.3
$
13.5
-12
%
1 Adjusted EBITDA is not a recognized earnings measure and does not have a standard meaning prescribed by GAAP.
Canadian Cannabis’ Composition of Sales by Channel
(millions except % metrics)
Three Months Ended December 31,
2024
2023
CAD $
USD $
CAD $
USD $
Change of C $
Retail Branded Sales
$
55.8
$
39.9
$
56.1
$
41.2
-1
%
Non-Branded Sales
$
9.5
$
6.8
$
7.9
$
5.7
20
%
International Sales
$
2.5
$
1.7
$
1.1
$
0.8
127
%
Other
$
0.9
$
0.6
$
0.7
$
0.6
29
%
Less: Excise Taxes
$
(20.7
)
$
(14.8
)
$
(22.2
)
$
(16.3
)
-7
%
Net Sales
$
48.0
$
34.2
$
43.6
$
32.0
10
%
(millions except % metrics)
Year Ended December 31,
2024
2023
CAD $
USD $
CAD $
USD $
Change of C $
Retail Branded Sales
$
251.7
$
183.9
$
202.4
$
149.9
24
%
Non-Branded Sales
$
39.6
$
28.9
$
21.0
$
15.5
89
%
International Sales
$
8.4
$
6.1
$
6.2
$
4.6
35
%
Other
$
2.7
$
1.9
$
2.7
$
2.0
0
%
Less: Excise Taxes
$
(98.4
)
$
(72.0
)
$
(78.3
)
$
(58.0
)
26
%
Net Sales
$
204.0
$
148.9
$
154.0
$
114.0
32
%
Presentation of Financial Results
The Company’s financial statements for the three and twelve months ended December 31, 2024, as well as the comparative periods for 2023, have been prepared and presented under United States Generally Accepted Accounting Principals (“GAAP”).
RESULTS OF OPERATIONS
(In thousands of U.S. dollars, except per share amounts, and unless otherwise noted)
Consolidated Financial Performance
Three Months Ended
December 31,
Year Ended December 31,
2024
2023
2024
2023
Sales
$
82,554
$
74,225
$
336,181
$
285,603
Cost of sales
(75,623
)
(63,219
)
(288,781
)
(236,177
)
Gross margin
6,931
11,006
47,400
49,426
Selling, general and administrative expenses
(18,455
)
(15,521
)
(71,048
)
(65,501
)
Interest expense
(759
)
(977
)
(3,365
)
(4,509
)
Interest income
157
277
914
1,018
Foreign exchange (loss) gain
(1,914
)
904
(2,843
)
602
Other income (expense)
3,487
3
4,015
5,616
Goodwill and intangible asset impairments
—
(14,020
)
(11,939
)
(14,020
)
Other impairments
(439
)
—
(439
)
—
Loss before taxes
(10,992
)
(18,328
)
(37,305
)
(27,368
)
Recovery of (Provision for) income taxes
2,336
(7,182
)
1,662
(7,451
)
Loss including non-controlling interests
(8,656
)
(25,510
)
(35,643
)
(34,819
)
Less: net loss (income) attributable to non-controlling interests, net of tax
27
27
(207
)
21
Net loss attributable to Village Farms International, Inc. shareholders
$
(8,629
)
$
(25,483
)
$
(35,850
)
$
(34,798
)
Adjusted EBITDA (1)
$
(3,546
)
$
(658
)
$
1,788
$
7,585
Basic loss per share
$
(0.08
)
$
(0.23
)
$
(0.32
)
$
(0.32
)
Diluted loss per share
$
(0.08
)
$
(0.23
)
$
(0.32
)
$
(0.32
)
(1) Adjusted EBITDA is not a recognized earnings measure and does not have a standardized meaning prescribed by GAAP. Therefore, Adjusted EBITDA may not be comparable to similar measures presented by other issuers. Management believes that Adjusted EBITDA is a useful supplemental measure in evaluating the performance of the Company because it excludes items that do not reflect our business performance. Adjusted EBITDA includes the Company’s 70% interest in Rose LifeScience through March 31, 2024, 80% interest in Rose LifeScience beginning on April 1, 2024, 85% interest in Leli through September 22, 2024, and our 100% interest in Leli beginning on September 23, 2024.
We caution that our results of operations for the three and twelve months ended December 31, 2024, and 2023 may not be indicative of our future performance.
SEGMENTED RESULTS OF OPERATIONS
(In thousands of U.S. dollars, except per share amounts, and unless otherwise noted)
For the Three Months Ended December 31, 2024
VF Fresh (Produce)
Cannabis Canada
Cannabis U.S.
Clean Energy
Leli
Corporate
Total
Sales
$
43,300
$
34,202
$
4,613
$
439
$
—
$
—
$
82,554
Cost of sales
(40,869
)
(33,330
)
(1,402
)
(22
)
—
—
(75,623
)
Selling, general and administrative expenses
(3,253
)
(9,592
)
(2,932
)
—
(466
)
(2,212
)
(18,455
)
Other expense, net
2,826
(320
)
—
—
—
(1,535
)
971
Other impairments
—
—
(439
)
—
—
—
(439
)
Operating income (loss)
2,004
(9,040
)
(160
)
417
(466
)
(3,747
)
(10,992
)
(Provision for) recovery of income taxes
(77
)
2,433
—
—
150
(170
)
2,336
Income (loss) from consolidated entities
1,927
(6,607
)
(160
)
417
(316
)
(3,917
)
(8,656
)
Less: net loss attributable to non-controlling interests, net of tax
—
27