$VFF reports strong financial results and plans to enter US high-THC cannabis market.
Mar 9th 2023, 12:08 pm
Analyst Summary: Village Farms International, Inc. (NASDAQ: VFF) reported strong financial results for Q4 and full year 2022, with Canadian Cannabis becoming the number two top-selling cannabis company nationally. The company maintains its number two position despite distressed sales of biomass and ongoing promotional activity in the Canadian market. Village Farms' strong brand recognition, innovation, and low-cost cultivation are a powerful combination in a market that is expected to grow steadily over the next three to five years. The company plans to deliver another year of market-leading results in Canadian Cannabis, while also driving gains in production efficiencies and expense improvements. In the US line of products, combined with prudent cost management drove positive EBITDA for the fourth quarter. In the Fresh Produce sector, Village Farms reduced the adjusted EBITDA loss during the fourth quarter, driven by improvements in Texas operations. The company has initiated a comprehensive review of its operations and has initiated a multi-part plan, including technology and operational enhancements, as well as the decision to divest its Permian Basin facility. Management believes these initiatives will contribute to substantially improved financial performance of its Fresh Produce segment in 2023. The company also announced plans to enter the US high-THC cannabis market via multiple strategies, leveraging one of the largest greenhouse operations in the country. In conclusion, Village Farms International, Inc. is expected to maintain its leadership position in the Canadian Cannabis market and is focused on improving financial performance of its Fresh Produce segment while entering the US high-THC cannabis market.