Village Farms International, Inc. (NASDAQ:VFF) (TSX:VFF) released its financial results for the third quarter ended September 30, 2022. revealing consolidated sales were $71.1 million, a 2% decrease compared to $72.4 million in Q3 2021.
Q3 2022 Financial Highlights
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Consolidated net loss was $8.7 million, or ($0.10) per share compared with net income of $745,000, or $0.01 per share in Q3 2021.
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Consolidated adjusted EBITDA was negative $2.2 million compared with positive adjusted EBITDA of $6.9 million in Q3 2021.
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Gross margin was $8.4 million compared to $17.7 million in Q3 2021.
Management Commentary
"The strong performance in our Canadian cannabis business in the third quarter reflects the successful execution of our growth strategy and investments as we achieved another sales record, outstanding growth in retail sales, and our 16th consecutive quarter of positive adjusted EBITDA," stated Michael DeGiglio, CEO, Village Farms. "Our growth in retail branded sales continues to be driven by multiple factors. Pure Sunfarms, which remains the best-selling dried flower-brand nationwide, grew market share with consumer-preferred innovations.”
“We launched the first SKUs in our new brand targeting the value segment of the market, The Original Fraser Valley Weed Co., which has already contributed to expanding our number one dried flower market share positions in BC and Alberta. In Quebec, Rose LifeScience became the number two selling licensed producer in October, less than one year after our majority acquisition, as it launched new products across its brands, including the highly successful Promenade brand in collaboration with Pure Sunfarms. All of this contributed to Village Farms becoming the number one selling cannabis company in Canada across all product categories in October," continued DeGiglio.
Completion of Continuance into the Province of Ontario
On November 9, 2022, the company completed its continuance from the Canada Business Corporations Act into the Province of Ontario under the Business Corporations Act (Ontario). The continuance was approved by the company's shareholders at the company's annual and special meeting of shareholders held on May 24, 2022. As a result of the continuance, the company is now governed by the OBCA.
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