Village Farms Q4 Net Income Drops 96% YoY to $2.1M, Canadian Cannabis Sales Improve to $26.8M
Village Farms International, Inc. (NASDAQ:VFF) on Tuesday announced its financial results for the three months and fiscal year ended December 31, 2021.
“In the fourth quarter, we again delivered strong year-over-year sales and adjusted EBITDA growth, with positive contributions to adjusted EBITDA from each of our Canadian Cannabis, US Cannabis and Village Farms Fresh businesses. (Produce) for the second consecutive quarter. “, Michael De Giglio, CEO, Village Farms said. “Our results were driven by the continued strong performance of our cannabis business in Canada, with Pure Sunfarms leading market share in the dried flower category and successful new product launches, as well as the partial contribution from the first quarter of Rose LifeScience in Quebec, resulting in a 50% increase in net sales year over year and a 99% increase in adjusted EBITDA.”
Gross margin remained at the upper end of our target range at 42%. With increased production capacity and a robust product strategy, as well as the significant opportunities created by the acquisition of the Quebec company Rose and the expected achievement of EU-GMP certification, we believe that 2022 promises to carry the scale and the profitability of our Canadian cannabis operations to a new level.”
DeGiglio, added, “The performance of our Canadian cannabis operations throughout 2021 contributed to a year that saw Village Farms generate overall revenue and adjusted EBITDA growth of 58% and 89%, respectively, sustained by the profitable contribution of Balanced Health Botanicals since its inception. acquisition in August, and improved market prices for Village Farms Fresh in the second half. »
Fourth Quarter Financial Highlights
- Consolidated net income was $2.1 million, or $0.03 per share, compared to $7.0 million or $0.12 per share in the same period of 2020;
- Consolidated adjusted EBITDA was a gain of $5.3 million, compared to a loss of $500,000 in the same quarter last year;
- Cannabis sales in Canada reached $26.8 million, compared to $17.3 million in the third quarter of 2020;
- Cannabis gross margin in Canada was 42%, compared to 39% in the corresponding quarter of the previous year;
- Canadian cannabis net income reached $3.5 million, compared to $1.1 million for the same period of 2020;
- Canadian Cannabis Adjusted EBITDA was a gain of $4.9 million, compared to $2.4 million in the third quarter of last year;
- Total cannabis sales (in Canada and the United States) increased 168% year over year to $34.4 million and represented 47% of total consolidated sales, compared to 27% in the fourth quarter from 2020;
- Total Cannabis Adjusted EBITDA increased 183% year-over-year to $6.8 million;
Shares of Village Farms were trading up 4.32% at $5.56 per share in Tuesday’s pre-market session.