Village Farms' Bet on Cannabis, Tech-Fortified Produce Pays Off

The firm's fresh produce segment showed signs of revival.

Village Farms International (Nasdaq: VFF) reported a narrower loss in its third-quarter earnings, aided by robust growth in its North American cannabis operations and a turnaround in its fresh produce business, despite a slight decline in overall sales.

The Vancouver-based agriculture company, which specializes in controlled-environment farming, posted a net loss of $1.3 million, or 1 cent per share, improving from a loss of $12.3 million a year earlier. Consolidated sales fell 2% to $69.5 million, but the improved bottom line suggested gains from its strategic pivot to higher-margin cannabis and recovery in produce.

“Solid, profitable performance from each of our Canadian and U.S. Cannabis businesses, together with another quarter of significant year-over-year improvement in our Fresh Produce operations, is proving out our strategic decision,” CEO Michael DeGiglio said in a statement.

DeGiglio expressed optimism for the fresh produce business’ trajectory, particularly in the company’s fight against the Brown Rugose virus, noting advancements in virus-tolerant crops and new technology investments.

In Canada, the company’s cannabis segment improved its net income to $2.9 million, despite a modest decline in net sales.

The smaller U.S. cannabis division, Balanced Health Botanicals, also reported improved profitability for the period. Adjusted EBITDA increased to $200,000 from $10,000, while net income improved to $79,000 from a net loss of $300,000 last year.

The recently launched CBDistillery line also aims to bolster the company’s market share, coupled with efforts to secure a medicinal cannabis license in Texas.

Village Farms’ legacy fresh produce segment, once its primary focus, showed a $22.5 million improvement in adjusted EBITDA year-over-year. The company plans to dedicate more resources to its Delta 2 facility to enhance produce cultivation in 2024.

The earnings barely missed analysts’ average expectations of $70.83 million. Shares wobbled a bit in morning trading on Wednesday, down nearly 2% as of press time.

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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