Village Farms International Reports $6.7 Million Net Loss in Q1 2025

Village Farms International, Inc. reported a net loss of $6.7 million for the first quarter of 2025, compared to a loss of $2.9 million in the same period last year. The company's revenue for the quarter was $77.1 million, a slight decline of 1% from $78.1 million in the prior year. The decrease in revenue was primarily attributed to a drop in sales from the Canadian Cannabis segment, which fell by $2.6 million due to unfavorable exchange rate fluctuations, alongside a $0.6 million decrease in U.S. Cannabis sales. In contrast, the produce segment, VF Fresh, saw a revenue increase of $1.3 million, driven by a 39% rise in volume from supply partners.

The company's cost of sales increased to $65.7 million, up 5% from $62.6 million in the previous year, largely due to higher costs in the VF Fresh segment. Gross profit for the quarter was reported at $11.3 million, down 27% from $15.5 million in the prior year, reflecting the challenges faced in the produce segment. Selling, general, and administrative expenses rose slightly to $16.8 million, representing 22% of sales, compared to 21% in the previous year. The company also reported a significant increase in interest income, totaling $75,000, while interest expense decreased to $706,000.

In terms of strategic developments, Village Farms has made significant moves in its cannabis operations, including the completion of its acquisition of Leli Holland, which allows the company to cultivate and distribute cannabis in the Netherlands. The company also announced plans to privatize certain assets and operations of its Fresh Produce segment, which is expected to generate $40 million in cash proceeds and a 37.9% equity interest in a new joint venture. This transaction is anticipated to close in the second quarter of 2025.

Operationally, Village Farms reported a total of 112,337,049 common shares outstanding as of May 5, 2025. The company is currently navigating challenges related to compliance with Nasdaq's minimum bid price requirement, having received a 180-day extension until October 13, 2025, to regain compliance. The company is focused on leveraging its assets and expertise in both the cannabis and produce sectors to enhance its market position and profitability.

Looking ahead, Village Farms anticipates continued growth in its international cannabis sales, particularly in medical markets, with expectations to triple export sales in fiscal year 2025 compared to the previous year. The company is also optimistic about the potential benefits of its strategic initiatives, including the privatization of its produce operations and the expansion of its cannabis business in both Canada and international markets.