VFF Earnings Prediction
The chart below shows how VFF performed 10 days before and after its earnings report, based on data from the past quarters. Typically, VFF sees a +2.89% change in stock price 10 days leading up to the earnings, and a +9.50% change 10 days following the report. On the earnings day itself, the stock moves by +0.71%. This data can give you a slight idea of what to expect for the next quarter's release.
VFF Key Earning Data
2024/Q4
Year Over Year
Quarter Over Quarter
Total Revenue
83.37M
19.94%
-9.56%
Gross Margin
18.84%
-10.41%
87.84%
Operating Margin
-1.00%
-42.20%
-91.15%
Net Margin
-0.90%
-50.00%
-96.48%
EPS
-0.01
-0.00%
-95.24%
No Data Available
VFF Earnings Analysis
Village Farms International, Inc. Common Shares Corporation (VFF.O) Earnings Conference Call
Positive
Fresh Produce Sales Surge: Fresh Produce sales increased 20% to nearly $43 million, with gross margin improving by 400 basis points year-over-year.
Canadian Cannabis Sales Growth: Total net sales in Canadian cannabis grew 29% year-over-year to roughly CAD 15 million, with positive adjusted EBITDA of CAD 6.5 million.
EBITDA Growth and Contributions: Consolidated adjusted EBITDA was positive CAD 5.3 million, up 65% from CAD 3.2 million for Q3 last year, with contributions from both Canadian cannabis and fresh produce.
Cannabis Gross Margin Improvement: Canadian cannabis gross margin improved to 31% when excluding non-branded spec sales, returning to the target range of 30% to 40%.
Positive Operating Cash Flow: Cash flows from operations were CAD 4.1 million, marking the second consecutive quarter of positive operating cash flow.
Negative
Inventory Shortages Affect Sales: 1. Inventory Shortages Impact Sales: Out-of-stock inventory in popular SKUs resulted in an estimated $2.5 million lower sales during Q3 2024, affecting overall sales performance in the Canadian cannabis segment.
Gross Margin Decline: 2. Declining Gross Margins: Canadian cannabis gross margins fell to 26% in Q3 2024, down from 35% in Q3 2023, primarily due to increased non-branded spec sales which are lower margin.
Excise Tax Impact: 3. High Excise Tax Burden: The company paid CAD 24 million in excise taxes during Q3 2024, contributing to significant financial pressure and impacting capital allocation decisions.
Canadian Cannabis Market Stagnation: 4. Slow Market Growth: The overall Canadian cannabis market is experiencing slower growth, with expectations of mid-single-digit growth rates for the upcoming year, indicating a potential stagnation in demand.
Cannabis Sector Challenges: 5. U.S. Cannabis Business Struggles: The U.S. cannabis segment reported a negative adjusted EBITDA of CAD 159,000 in Q3 2024, reflecting ongoing challenges from regulatory issues and market competition.
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VFF Earning Call Sentiment
Village Farms International (VFF) Q3 2024 Earnings Conference Call Transcript
1.0x
00:00
00:00
VFF.O
4.55%Positive
The earnings call summary presents a positive outlook with a 45% YoY revenue growth and improved cash flow, despite some challenges like stock-outs. The Q&A section reveals a strategic focus on profitability and international market expansion, particularly in Europe, with expectations of higher margins. Although there are concerns about Canadian market growth and excise taxes, the overall sentiment is optimistic, especially with strong performance in fresh produce and Canadian cannabis sales. The lack of share buyback or dividend program is a neutral factor in this context.
