Village Farms International (Nasdaq: VFF) reported robust cannabis sales in the U.S. and Canada for the second quarter ended June 30. Branded cannabis sales in Canada saw 18% growth year-over-year, while international cannabis exports skyrocketed 189%.
The company captured the number one market share position in the Quebec market.
Overall, consolidated sales reflected a minor 7% decline year-over-year, settling at $77.2 million. The dip was accompanied by an improved operating loss of $42,000, a substantial rebound from the previous year’s $43.8 million loss.
The revenue figure beat the average analyst estimates per Yahoo Finance for expectations by nearly $7 million.
“Our Canadian cannabis business delivered 24% year-over-year growth in Canadian dollar retail branded sales – all of which was generated organically – once again significantly outpacing expansion of the overall market,” CEO Michael DeGiglio said in a statement.
DeGiglio also highlighted the launch of seven new cannabis brands over the past 18 months, emphasizing the company’s consumer-focused approach.
Village Farms’ U.S. division, Balanced Health Botanicals, also delivered encouraging results. Net sales came in at $5.3 million, with a gross margin of 67% and net income of $200,000. The CEO underscored the potential for further growth, pointing to the company’s solid footing in anticipation of more favorable shifts in CBD regulation.
The Fresh Produce division recorded an $11.6 million upswing in adjusted earnings, resulting in positive adjusted EBITDA of $1.3 million for the quarter.