Business
Village Farms International Reports Financial Results for First Quarter 2023
Canadian Cannabis Business Maintains Number Two Market Share Position Nationally, Including Number Two Position in QuebecCanadian Cannabis Retail Branded
About this update from Village Farms International, Inc.
[{"type":"text","content":"Canadian Cannabis Business Maintains Number Two Market Share Position Nationally, Including Number Two Position in QuebecCanadian Cannabis Retail Branded Sales Increase 40% Year-Over-Year, Again Significantly Outpacing Market GrowthCanadian Cannabis Business Added Third Export Market with Launch in GermanyFresh Produce Business Delivered Third Consecutive Quarter of Significant Improvement VANCOUVER, British Columbia, May 10, 2023 (GLOBE NEWSWIRE) -- Village Farms International, Inc. (“Village Farms” or the “Company”) (NASDAQ: VFF) today announced its financial results for the first quarter ended March 31, 2023. All figures are in U.S. dollars unless otherwise indicated. Management Commentary “The first quarter was a solid start to 2023 as continued strong growth in our Canadian Cannabis business and steady sequential performance in our US Cannabis business were complemented by another quarter of significantly improved results in our Fresh Produce business,” said Michael DeGiglio, Chief Executive Officer, Village Farms. “Our Canadian Cannabis business delivered 40% year-over-year growth in Retail Branded sales for the first quarter, once again significantly outpacing overall market growth, as we maintained our number two market share position nationally and were one of just three of the top 10 producers to expand market share from the same period last year1. Combined with our ongoing focus on production efficiency and cost management, we achieved our 18th consecutive quarter of positive adjusted EBITDA, with a year-over-year increase of 95%.” “Canada continues to be an exceptionally difficult environment in which to operate a legal cannabis business profitably, most notably due to the absurd level of taxation relative to all other consumer products, including similarly regulated products like alcohol. The excessive, flat per-gram excise tax is handcuffing the very businesses that can ensure that this historical piece of Canadian legislation is a long-term success. At the same, it is enabling the illicit market to not only survive but flourish. We are disappointed that the federal government has not yet chosen to revisit cannabis taxation in the context of the economic realities of the market, while concurrently choosing to limit proposed tax increases in the already favourably taxed alcohol industry. We implore the federal gover...