Village Farms International Inc Reports Q2 2024 Financial Results
Intellectia.AI1970-01-01
Village Farms International, Inc. Reports Q2 2024 Financial Results
Village Farms International, Inc. (VFF) has released its financial results for the quarter ended June 30, 2024.
Key Financial Metrics
| Metric | Q2 2024 Actual | Q2 2023 Actual | YoY Change | Q1 2024 Actual | QoQ Change | Consensus Estimates |
|---|---|---|---|---|---|---|
| Total Revenue | $92.18M | $77.21M | +19% | $78.08M | +18% | $84.27M |
| Earnings Per Share (EPS) | $-0.21 | $-0.02 | -950% | $-0.06 | -250% | $-0.03 |
The company saw a significant year-over-year (YoY) increase in total revenue by 19%, driven by strong performance in its Canadian Cannabis and Produce segments. However, the earnings per share (EPS) declined sharply from -$0.02 in Q2 2023 to -$0.21 in Q2 2024, partially due to a goodwill and intangible assets impairment charge in the U.S. Cannabis segment.
Segment Revenue Performance
| Segment | Q2 2024 Actual | Q2 2023 Actual | YoY Change | Q1 2024 Actual | QoQ Change |
|---|---|---|---|---|---|
| Canadian Cannabis | $40.75M | $28.07M | +45% | $37.45M | +9% |
| U.S. Cannabis | $4.30M | $5.30M | -19% | $4.54M | -5% |
| Produce | $47.02M | $43.85M | +7% | $36.09M | +30% |
The Canadian Cannabis segment exhibited a strong YoY revenue growth of 45%, largely driven by market share gains and new product launches. The Produce segment also showed a 7% increase in revenue YoY. However, the U.S. Cannabis segment's revenue declined by 19% YoY, primarily due to the proliferation of unregulated hemp-derived products affecting market share.
Comments from Company Officers
CEO Michael DeGiglio stated, "Our Canadian Cannabis and Produce segments continue to perform strongly, demonstrating our ability to execute on our strategic priorities. However, our U.S. Cannabis business faced significant challenges, which led to a substantial impairment of goodwill and intangible assets."
Forward Guidance
The company did not provide specific forward guidance but indicated that it expects continued growth in its Canadian Cannabis and Produce segments.
Stock Price Movement
Following the earnings release, Village Farms International’s stock price declined by approximately 1.83%.
Overall, while Village Farms International has shown robust revenue growth, particularly in its Canadian Cannabis and Produce segments, challenges in the U.S. Cannabis market weigh heavily on its bottom line. The company remains optimistic about its future growth prospects, particularly outside of the U.S.
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