Village Farms International, Inc. (NASDAQ: VFF) announced its financial results for the three months and year ended December 31, 2021. Sales for the fourth quarter increased 55% to $72.8 million versus last year’s sales of $47.4 million for the same time period. This beat the average analyst estimate on Yahoo Finance for $70 million in revenue. The net income for the quarter was $2.1 million versus last year’s net income of $7 million. The company said it was the 13th consecutive quarter of positive adjusted EBITDA. The earnings per share for the quarter were $0.03, which beat the Yahoo Finance average analyst estimate of $0.02.
Sales for the full year were $268 million an increase of 58% over the previous year’s sales of $170 million. The net loss for the year though was $9.1 million versus last year’s net income of $11.6 million. The company said that the net loss was driven by a decrease in its operating loss of ($8,738) for the year ended December 31, 2021, as compared to an operating loss of ($14,268) for the year ended December 31, 2020. “The 2020 net income was significantly enhanced by the gain in the acquisition of Pure Sunfarms of $23,631 and the gain on the settlement agreement with Emerald of $4,681, partially offset by the write-off of ($3,791) of the company’s loan to VF Hemp and loss on disposal of VFCE assets of ($922).”
“In the fourth quarter, we once again saw strong year-over-year growth in sales and adjusted EBITDA, with positive adjusted EBITDA contributions from each of our Canadian Cannabis, US Cannabis and Village Farms Fresh (Produce) businesses for the second consecutive quarter,” said Michael DeGiglio, CEO, Village Farms. “Our results were driven by the continued strong performance of our Canadian cannabis operations, with Pure Sunfarms’ leading market share in the dried flower category and successful new product introductions, as well as the first partial quarter contribution of Rose LifeScience in Quebec, driving a 50% year-over-year increase in net revenue and 99% increase in adjusted EBITDA. The gross margin remained at the top end of our target range at 42%. With expanded production capacity and robust product strategy, as well as the significant opportunities created by the acquisition of Quebec-based Rose and anticipated receipt of EU-GMP certification, we believe 2022 promises to take the scale and profitability of our Canadian cannabis operations to a new level.”
During 2021 and 2020, Pure Sunfarms determined that it met the employer eligibility criteria and applied for the CEWS and received C$871 and C$2,470 of wage subsidies during the years ended December 31, 2021 and 2020, respectively.
“The performance of our Canadian cannabis operations throughout 2021 contributed to a year that saw Village Farms overall deliver growth in revenue and adjusted EBITDA of 58% and 89%, respectively, supported by the profitable contribution of Balanced Health Botanicals since its acquisition in August, and the improvement in market pricing for Village Farms Fresh in the second half of the year. 2021 was also a year in which we meaningfully moved forward our growth strategies – in high and low-THC cannabis, in North America and abroad – which we expect will position Village Farms to build on our current momentum for the next phase of profitable, outsized growth – in 2022 and beyond.”