Village Farms International (NASDAQ:VFF) Announces Quarterly Earnings Results

Village Farms International (NASDAQ:VFF) announced its quarterly earnings data on Monday. The company reported $0.02 earnings per share for the quarter, meeting the consensus estimate of $0.02, FiscalAI reports. Village Farms International had a return on equity of 5.79% and a net margin of 12.81%.The business had revenue of $50.24 million during the quarter, compared to analyst estimates of $47.81 million.

Here are the key takeaways from Village Farms International’s conference call:

• Village Farms reported a strong Q1 with $50.2M in net sales (+27% YoY), adjusted EBITDA of $9.9M (+118% YoY) and a fourth consecutive quarter of positive net income, signaling improved profitability and margin expansion.
• International medical exports were a major driver — exports rose 171% YoY (to ~$15M) with Germany a standout market and management says demand and pricing for its EU GMP?compliant flower remain stable after completing BC facility upgrades to become the company’s largest EU GMP?certified campus.
• Production capacity is expanding: Delta 2 planting began with first harvest the week of May 18 (targeting an incremental ~15 MT this year and ~40 MT annual capacity by mid?next year), while Groningen phase 2 in the Netherlands is complete but awaits final regulatory certification after a slight delay.
• Balance sheet activity included ~$56M cash (net cash position ~$20M), total debt of ~$36M, a large Canadian tax payment that caused Q1 negative operating cash flow but management expects positive operating cash flow from Q2, and active buybacks of >2M shares (~$6.4M) completing the board?approved program.
• On U.S. rescheduling and M&A, management is optimistic about long?term opportunity but will remain patient and selective amid regulatory uncertainty, appointing CFO Steve Ruffini to lead M&A efforts.

Village Farms International Trading Up 2.7%

NASDAQ:VFF opened at $2.64 on Tuesday. The company has a market cap of $301.73 million, a P/E ratio of 9.78 and a beta of 1.34. The stock’s fifty day moving average price is $2.89 and its two-hundred day moving average price is $3.28. Village Farms International has a 1 year low of $0.64 and a 1 year high of $4.99. The company has a debt-to-equity ratio of 0.11, a current ratio of 2.64 and a quick ratio of 1.93.

Institutional Investors Weigh In On Village Farms International

Institutional investors have recently made changes to their positions in the stock. Barclays PLC purchased a new stake in shares of Village Farms International during the fourth quarter worth $29,000. Mariner LLC purchased a new stake in shares of Village Farms International in the fourth quarter worth $44,000. OLD Mission Capital LLC purchased a new stake in shares of Village Farms International in the fourth quarter worth $56,000. WINTON GROUP Ltd purchased a new stake in shares of Village Farms International in the fourth quarter worth $64,000. Finally, NewEdge Advisors LLC purchased a new stake in shares of Village Farms International in the third quarter worth $83,000. Hedge funds and other institutional investors own 12.15% of the company’s stock.

Analyst Ratings Changes

Several brokerages have weighed in on VFF. Weiss Ratings reissued a “hold (c)” rating on shares of Village Farms International in a report on Tuesday, January 27th. Zacks Research downgraded Village Farms International from a “hold” rating to a “strong sell” rating in a research report on Monday, March 16th. Finally, Wall Street Zen downgraded Village Farms International from a “buy” rating to a “hold” rating in a research report on Saturday, March 21st. Two research analysts have rated the stock with a Buy rating, one has given a Hold rating and one has assigned a Sell rating to the company’s stock. According to data from MarketBeat, Village Farms International currently has an average rating of “Hold”.

Village Farms International Company Profile

Village Farms International, Inc is a North American agricultural company specializing in greenhouse cultivation of fresh produce and cannabis. Through its wholly owned operations, the company grows a variety of high-quality vegetables, including tomatoes, cucumbers and sweet peppers, using controlled-environment agriculture techniques designed to maximize yield and sustainability. Village Farms leverages advanced climate and hydroponic systems to deliver consistent year-round supply to major grocery retailers across the United States and Canada.

In its produce segment, Village Farms operates large-scale greenhouse facilities in Texas and Canada.