Village Farms International, Inc. (TSX: VFF) reported this morning its financial results for the first quarter of 2021, the first full quarter of the company wholly owning Pure Sunfarms. Village Farms reported US$52.4 million in revenue, US$17.5 million of which came from Pure Sunfarms’ gross sales.
Village Farms’ quarterly revenue is a 63% increase from last year’s US$32.1 million in revenue. The US$52.4 million consolidated revenue consists of the said US$17.5 million cannabis sales from Pure Sunfarms, US$34.9 million in produce sales, and US$0.1 million in sales from clean energy.
However, costs of sales amounted to $50.1 million, resulting in gross margins of just $2.3 million, while selling, general, and administrative expenses amounted to $8.2 million. This resulted in Village Farms recording a net loss of US$7.4 million this quarter, a decline from last year’s US$4.2 net income. US$2.8 million of this quarter’s net loss comes from Pure Sunfarms. This consolidated net loss translates to US$0.1 loss per share.
The company relayed that while Pure Sunfarms’ revenues helped with the company’s bottom line, it is partially offset by the decrease in produce sales due to the lowest pricing environments for tomatoes-on-the-vine and beefsteak varieties in the past ten years.
The company said that it plans to “increase capacity by 50% by year-end and double it in the second half of 2022.”
You may see the full details of Village Farms’ Q1 2021 financial and operational results here.
Village Farms International last traded at $13.49 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.