Record Profitability and Revenue Growth
Village Farms reported record levels of profitability, with consolidated sales increasing by 12% year-over-year. Consolidated net income from continuing operations improved to $9.9 million, or $0.09 per share. Adjusted EBITDA from continuing operations was $17.1 million, reflecting a record performance and improved sustainability.
Transformational Quarter with Strategic Partnerships
The company announced and quickly closed a transaction to privatize about one-third of its produce assets, forming a new partnership with proven private investment partners. This transaction generated $40 million in cash proceeds, strengthening the balance sheet.
International Cannabis Sales Surge
International exports increased almost 700% year-over-year and were up over 120% sequentially from the first quarter. The company has achieved its full-year target of tripling 2024 international export sales at the halfway point of the year.
Expansion in the Netherlands and Canada
The company announced the conversion of the remaining 550,000 square feet of its Delta 2 greenhouse in British Columbia to cannabis cultivation, with an expected full production by the first quarter of 2027. Additionally, the Phase 2 facility in the Netherlands is expected to be operational during the first quarter of next year, quadrupling annual production capacity.
Successful Market Penetration in the Netherlands
The company now has product in 66 of the 80 participating coffee shops, reflecting a market penetration of 82.5% in the Netherlands.