Village Farms Reports Q2 Revenues Of US$70.4 Million, Net Loss
Village Farms (TSX: VFF) (NASDAQ: VFF) this morning reported its second quarter financial results. The firm posted revenues of US$70.4 million, beating consensus estimates of $62.99 million for the three month period.
Sales during the quarter were largely comprised of Produce revenues, which came in at $45.5 million, while revenues from the firms portion of Pure Sunfarms amounted to $24.8 million, and VFCE revenues added $0.1 million to the total. Revenues however did not come cheaply, with cost of sales amounted to $65.1 million, resulting in gross margins of just $5.3 million.
Operationally, the company ran into the red, with selling, general and administrative expenses totaling out at $9.0 million, higher than gross margins for the quarter. Share based compensation meanwhile amounted to $1.9 million, while interest expenses came in at $0.6 million.
Overall, Village Farms reported a net loss of $4.5 million for the three month period, compared to a net loss of $7.4 million in the first quarter. Adjusted EBITDA however was positive, coming in at $1.5 million, which is higher than the $1.31 million consensus estimate from analysts.
Cash and cash equivalents as of the end of the quarter totaled $114.0 million.
Speaking to the firms cannabis division, Pure Sunfarms, specifically, the division reportedly saw adjusted EBITDA of US$7.4 million, a result of strong net sales improving to US$24.7 million during the quarter. The division reportedly is producing gross margins of 40%, an improvement from the 33% reported in the year ago period.
Village Farms last traded at $12.47 on the TSX.
Information for this briefing was found via Sedar and Village Farms International. The author has no securities or affiliations related to this organization. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
As the founder of The Deep Dive, Jay is focused on all aspects of the firm. This includes operations, as well as acting as the primary writer for The Deep Dive’s stock analysis. In addition to The Deep Dive, Jay performs freelance writing for a number of firms and has been published on Stockhouse.com and CannaInvestor Magazine among others.
