Village Farms Beats Q2 Estimates Despite Sales Slump

Still, consolidated sales slightly fell by 7% year-over-year to $77.2 million.

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.

Adam Jackson

Adam Jackson writes about the cannabis industry for the Green Market Report. He previously covered the Missouri Statehouse for the Columbia Missourian and has written for the Missouri Independent. He most recently covered retail, restaurants and other consumer companies for Bloomberg Business News. You can find him on Twitter at @adam_sjackson and email him at

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