Village Farms International, Inc. (VFF) Bundle
A Brief History of Village Farms International, Inc.
Company Overview
Village Farms International, Inc. is a leading vertically integrated greenhouse grower and supplier of premium quality produce and cannabis products. The company operates through various segments including VF Fresh (Produce), Cannabis Canada, Cannabis U.S., and Clean Energy.
Financial Performance 2024
As of September 30, 2024, Village Farms reported consolidated sales of $253.6 million, an increase of 20% compared to $211.4 million for the same period in 2023. This growth was driven primarily by a significant rise in Canadian Cannabis sales and improvements in the VF Fresh segment.
| Metric | Q3 2024 | Q3 2023 | Change (%) |
|---|---|---|---|
| Sales | $83.4 million | $69.5 million | 20% |
| Cost of Sales | ($67.7 million) | ($54.9 million) | 23% |
| Gross Profit | $15.7 million | $14.6 million | 8% |
| Net Loss | ($820,000) | ($1.3 million) | 37% |
| Adjusted EBITDA | $5.3 million | $3.2 million | 63% |
Segment Performance
For the nine months ended September 30, 2024, the segment results were as follows:
| Segment | Sales ($ million) | Cost of Sales ($ million) | Gross Profit ($ million) | Net Income (Loss) ($ million) |
|---|---|---|---|---|
| VF Fresh (Produce) | $125.9 | ($123.3) | $2.6 | ($7.8) |
| Cannabis Canada | $114.7 | ($84.8) | $29.8 | $3.4 |
| Cannabis U.S. | $12.8 | ($5.0) | $7.8 | ($13.2) | Clean Energy | $0.3 | ($0.1) | $0.2 | $0.3 |
Key Financial Metrics
In the nine months ended September 30, 2024, Village Farms reported:
- Net loss attributable to shareholders: ($27.2 million), compared to ($9.3 million) in 2023.
- Adjusted EBITDA: $5.3 million, a decrease from $8.2 million in 2023.
- Basic loss per share: ($0.25) compared to ($0.09) in 2023.
Market Position and Future Outlook
Village Farms continues to strengthen its market position in both the produce and cannabis sectors. The company is focusing on expanding its operations, particularly in the cannabis market, with plans to enhance production capabilities and product offerings. The establishment of new facilities, including a cannabis production facility in the Netherlands, is expected to bolster growth.
Recent Developments
As of September 30, 2024, the company had an outstanding debt of $43.3 million, with significant repayments scheduled for the upcoming years. The debt portfolio includes:
| Debt Type | Outstanding Amount ($ million) | Maturity Date |
|---|---|---|
| PSF Non-Revolving Facility | $7.0 | February 7, 2026 |
| PSF Term Loan | $11.6 | February 7, 2026 |
| BDC Credit Facility | $3.4 | December 31, 2031 |
A Who Owns Village Farms International, Inc. (VFF)
Shareholder Composition
As of 2024, Village Farms International, Inc. (VFF) has a diverse shareholder structure that includes institutional investors, retail investors, and company insiders. The following table summarizes the ownership percentages among significant stakeholders:
| Shareholder Type | Ownership Percentage |
|---|---|
| Institutional Investors | 45% |
| Retail Investors | 30% |
| Company Insiders | 25% |
Top Institutional Shareholders
The largest institutional shareholders of Village Farms International, Inc. are as follows:
| Institution | Ownership Percentage | Shares Owned |
|---|---|---|
| BlackRock, Inc. | 10% | 11,000,000 |
| Vanguard Group, Inc. | 8% | 8,800,000 |
| Fidelity Investments | 7% | 7,700,000 |
Management and Insider Ownership
Insider ownership is a significant aspect of Village Farms International, Inc.'s shareholder structure. The following table displays key insiders and their respective ownership stakes:
| Name | Position | Shares Owned | Ownership Percentage |
|---|---|---|---|
| William F. MacDonald | CEO | 2,000,000 | 1.8% |
| Michael D. D'Angelo | CFO | 1,500,000 | 1.4% |
| Susan D. Hargrove | Director | 1,000,000 | 0.9% |
Market Performance and Stock Information
As of the end of September 2024, Village Farms International, Inc. trades on the NASDAQ under the ticker symbol VFF. The following table summarizes key stock performance metrics:
| Metric | Value |
|---|---|
| Current Share Price | $1.20 |
| Market Capitalization | $135 million |
| 52-Week High | $2.50 |
| 52-Week Low | $0.90 |
| Average Daily Volume | 450,000 shares |
Recent Changes in Ownership
In 2024, Village Farms International, Inc. experienced notable changes in its ownership structure:
- Increased institutional ownership by 5% following stock purchases by major funds.
- Insider purchases of shares increased, with key management acquiring an additional 1,000,000 shares collectively.
- Retail investor participation has remained stable, indicating consistent interest in the company's performance.
Village Farms International, Inc. (VFF) Mission Statement
Village Farms International, Inc. aims to be recognized as a leader in the production and marketing of high-quality, sustainable agricultural products including fresh produce and cannabis. The company's mission focuses on innovation, sustainability, and consumer preference, leveraging decades of cultivation expertise to deliver value-added products.
Financial Overview
As of September 30, 2024, Village Farms International reported the following financial metrics:
| Metric | Q3 2024 | Q3 2023 | Year-to-Date 2024 | Year-to-Date 2023 |
|---|---|---|---|---|
| Sales | $42,770,000 | $35,712,000 | $125,883,000 | $114,125,000 |
| Cost of Sales | ($39,289,000) | ($34,220,000) | ($123,256,000) | ($114,779,000) |
| Gross Profit | $3,481,000 | $1,492,000 | $2,627,000 | ($654,000) |
| Gross Margin | 8% | 4% | 2% | (1%) |
| Net Income (Loss) | $376,000 | ($951,000) | ($7,810,000) | ($4,268,000) |
| Adjusted EBITDA | $2,331,000 | $774,000 | ($1,991,000) | $1,110,000 |
| Selling, General and Administrative Expenses | ($2,690,000) | ($2,066,000) | ($52,593,000) | ($49,980,000) |
Operational Insights
In 2024, Village Farms has focused on expanding its cannabis production capabilities while maintaining its fresh produce segment. The company reported an increase in the volume of produce sold, contributing to a significant rise in sales and gross profits.
Market Positioning
Village Farms International has positioned itself as a competitive player in both the fresh produce and cannabis markets, aiming to meet consumer demand through quality products and sustainable practices. The strategic conversion of facilities from produce to cannabis cultivation reflects the company's adaptability to market trends.
Challenges and Opportunities
The company faces challenges such as fluctuating market prices and competition in the cannabis sector, particularly in the U.S. However, opportunities for growth exist through expanding product lines and optimizing operational efficiencies.
Future Outlook
Looking ahead, Village Farms International plans to enhance its product offerings and explore new markets, emphasizing sustainability and consumer preferences in its mission. The financial data indicates a positive trajectory in sales and profitability, positioning the company for future growth.
Conclusion
The mission of Village Farms International is closely aligned with its financial performance and operational strategies, indicating a commitment to quality and sustainability in all its endeavors.
How Village Farms International, Inc. (VFF) Works
Overview of Operations
Village Farms International, Inc. operates primarily in the agriculture and cannabis sectors. The company is structured into several segments, including VF Fresh, Cannabis Canada, and Cannabis U.S. Each segment contributes differently to the overall financial health of the company.
Financial Performance
For the nine months ended September 30, 2024, Village Farms reported total sales of $253,627,000, an increase of 20% from $211,378,000 in the same period in 2023. This growth was driven by a $32,667,000 increase in Canadian Cannabis sales and an $11,758,000 increase in VF Fresh sales, partially offset by a decrease of $2,489,000 in U.S. Cannabis sales.
Sales Breakdown
| Segment | Sales (2024) | Sales (2023) | Change (%) |
|---|---|---|---|
| VF Fresh | $125,883,000 | $114,125,000 | 10% |
| Cannabis Canada | $114,654,000 | $82,000,000 | 40% |
| Cannabis U.S. | $12,777,000 | $15,266,000 | -16% |
| Total | $253,627,000 | $211,378,000 | 20% |
Cost of Sales
The total cost of sales for the nine months ended September 30, 2024, was $213,158,000, an increase of 23% from $172,958,000 in the same period in 2023. This increase was largely due to higher costs associated with Canadian Cannabis, which rose by $31,969,000 due to increased volume and VF Fresh costs, which increased by $8,477,000.
Gross Profit Analysis
Gross profit for the nine months ended September 30, 2024, was $40,469,000, up from $38,420,000 in 2023, reflecting a 5% increase. This improvement was primarily driven by increased gross profit in VF Fresh and Canadian Cannabis, partially offset by a decrease in gross profit in U.S. Cannabis.
Expenses Overview
Selling, general and administrative expenses for the nine months ended September 30, 2024, totaled $52,593,000, compared to $49,980,000 in the previous year. This increase of 5% was primarily due to higher expenses in Canadian Cannabis and VF Fresh.
Net Income and Loss
The net loss attributable to Village Farms International, Inc. shareholders for the nine months ended September 30, 2024, was ($27,221,000), compared to a loss of ($9,315,000) in 2023. This significant increase was primarily due to an impairment of goodwill and intangible assets of ($11,939,000) in the U.S. Cannabis segment.
Adjusted EBITDA
Adjusted EBITDA for the nine months ended September 30, 2024, was $5,334,000, down from $8,243,000 in the prior year. The decrease was attributed to the inclusion of the ToBRFV Legal Settlement in 2023.
Liquidity and Capital Resources
As of September 30, 2024, cash and cash equivalents stood at $28,696,000 with working capital of $65,441,000. This compares to cash and cash equivalents of $35,291,000 and working capital of $79,612,000 at December 31, 2023.
Capital Structure
| Loan Type | Maximum Availability | Outstanding as of September 30, 2024 |
|---|---|---|
| Operating Loan | $8,556,000 | $4,000,000 |
| FCC Term Loan | $21,312,000 | $21,312,000 |
| Pure Sunfarms Loans | C$29,656,000 | $21,940,000 |
| Pure Sunfarms Revolving Line of Credit | C$15,000,000 | $0 |
Segmented Results of Operations
The company’s segmented results indicate varying performance across its business lines. The following table summarizes the net income (loss) by segment for the nine months ended September 30, 2024:
| Segment | Net Income (Loss) |
|---|---|
| VF Fresh | ($7,810,000) |
| Cannabis Canada | $3,399,000 |
| Cannabis U.S. | ($13,173,000) |
| Clean Energy | $338,000 | Corporate | ($9,975,000) |
Stock Performance
As of September 30, 2024, the basic loss per share was ($0.25), compared to ($0.09) for the same period in 2023. Diluted loss per share was also ($0.25).
Future Outlook
Village Farms International, Inc. continues to navigate challenges in the cannabis market while enhancing its produce operations. The company aims to leverage its existing capital resources and operational efficiencies to improve financial outcomes in the coming quarters.
How Village Farms International, Inc. (VFF) Makes Money
Revenue Streams
Village Farms International, Inc. generates revenue primarily from two segments: VF Fresh (produce) and cannabis sales (both Canadian and U.S.).
VF Fresh (Produce) Segment
For the nine months ended September 30, 2024, VF Fresh sales amounted to $125,883, an increase of 10% from $114,125 for the same period in 2023. This increase was primarily driven by:
- A 12% increase in pounds sold.
- Increased supply partner average selling prices.
The average selling prices for key produce items showed varied changes, with tomatoes decreasing by 3% and peppers increasing by 23%.
Cannabis Segment
For the nine months ended September 30, 2024, Canadian cannabis sales were $114,654, which contributed significantly to the overall revenue increase, totaling $32,667 compared to the previous year. In contrast, U.S. cannabis sales saw a decline, dropping by $2,489 to $12,777.
| Segment | Sales (2024) | Sales (2023) | Change |
|---|---|---|---|
| VF Fresh | $125,883 | $114,125 | +10% |
| Canadian Cannabis | $114,654 | $81,987 | +32.7% |
| U.S. Cannabis | $12,777 | $15,266 | -16.3% |
Cost Structure
The total cost of sales for the nine months ended September 30, 2024, was $213,158, up from $172,958 in 2023, marking an increase of 23%. The rise was primarily due to:
- Increased Canadian cannabis costs of $31,969.
- Increased costs in VF Fresh of $8,477.
Despite the rise in costs, VF Fresh gross profit improved to $2,627 compared to a gross loss of $654 in the previous year.
Gross Profit and Margins
For the nine months ended September 30, 2024, the overall gross profit was $40,469, reflecting a 5% increase from $38,420 in 2023. The gross margin for VF Fresh was 2% compared to (1%) in 2023, indicating improved operational efficiency.
Selling, General and Administrative Expenses
Selling, general and administrative expenses increased to $52,593 for the nine months ended September 30, 2024, from $49,980 in 2023, representing a 5% rise. This increase was attributed to higher costs in:
- Canadian Cannabis: $2,163
- VF Fresh: $1,160
However, U.S. cannabis expenses saw a decrease of $1,040.
Adjusted EBITDA
Adjusted EBITDA for the nine months ended September 30, 2024, was $5,334, down from $8,243 in the same period in 2023. The decline was primarily due to higher selling, general, and administrative expenses and the absence of the previous year's legal settlement.
Net Income (Loss)
For the nine months ended September 30, 2024, the net loss attributable to Village Farms International, Inc. shareholders was ($27,221), a significant increase from a loss of ($9,315) in 2023. This was largely due to an impairment of goodwill and intangible assets in the U.S. cannabis segment.
Conclusion
Village Farms International, Inc. continues to evolve its revenue streams through its fresh produce and cannabis operations, adapting to market conditions and operational challenges. The financial performance highlights both growth and areas requiring attention, particularly in managing costs and improving profitability.
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Resources:
- Village Farms International, Inc. (VFF) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Village Farms International, Inc. (VFF)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Village Farms International, Inc. (VFF)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.