Village Farms International: Cannabis and Produce Markets Drive Consistent Growth Opportunities.
Mar 9th 2023, 9:08 pm
Performance Analysis: Village Farms International, Inc. has shown consistent growth in its operations, as seen in their revenue figures in the past year. Their cannabis segment, Pure Sunfarms, has been one of the best-selling cannabis flower brands in Canada and continues to expand its distribution. Additionally, the EU GMP certification for their Delta 3 cannabis facility allows them to export EU GMP-certified medical cannabis to more international markets, which should further enhance their profitability while expanding their brand and experience into emerging new legal cannabis markets. Their Balanced Health segment, which sells high-quality CBD-based health and wellness products in the United States, has established itself as one of the leading cannabinoid brands and e-commerce platforms in the United States with its diverse portfolio of consumer products. This, along with their Village Farms Fresh produce segment, has enabled them to leverage their assets, expertise, and experience across cannabis, CBD, and produce to achieve consistent profitability. Village Farms Fresh brand sells premium-quality, greenhouse-grown tomatoes in North America, primarily under its Village Farms® brand name to retail supermarkets and dedicated fresh food distribution companies throughout the United States and Canada. Finally, their energy segment, VF Clean Energy, Inc., which previously operated a power plant from landfill gas that generated electricity and provided thermal heat to one of the Company's adjacent Delta, B.C. greenhouse facilities, is transitioning into the Delta RNG Project, which we believe can enhance the financial return and provide food-grade CO2 that can be used in both the cannabis and produce growing operations in Delta, B.C. Forward-Looking Analysis: Village Farms International, Inc. has a strong competitive position in the cannabis and produce markets, which together contribute to their consistent profitability. They plan to participate in other international markets where cannabis attains legal status, potentially further expanding their brand and experience. The EU GMP certification for their Delta 3 cannabis facility provides them with more opportunities to sell their products internationally, and the start-up of the Delta RNG Project could provide them with a new source of revenue and resources for their cannabis and produce growing operations in Delta, B.C. The CEO, Michael DeGiglio, stated that Village Farms International, Inc. was "on track to exceed $300M in combined cannabis and CBD revenue for fiscal 2022" and that "the legalization of cannabis in more states and countries presents tremendous growth opportunities for the entire Village Farms family of companies while expanding our family of brands and enhancing shareholder value." An increase in cannabis legalization in more states and countries will benefit their cannabis and CBD segments and potentially further enhance their brand identity. Overall, Village Farms International, Inc.'s strong competitive position and current trends in the industry place them in a favorable position for future growth and profitability.