Village Farms International Reports 21% Sales Increase to $66.7 Million in Latest Quarter

Village Farms International, Inc. reported significant financial improvements in its latest quarterly results, with total sales reaching $66.7 million for the three months ended September 30, 2025, a 21% increase from $54.9 million in the same period last year. The company's gross profit surged to $31.9 million, up 134% from $13.6 million, driven primarily by enhanced performance in its Canadian Cannabis segment and the introduction of new products from its Netherlands operations. The net income attributable to Village Farms shareholders was $10.2 million, compared to a loss of $0.8 million in the prior year, marking a substantial turnaround in profitability.

The company’s performance reflects a strategic shift, particularly in its Canadian Cannabis segment, which saw sales increase by 28% to $46.6 million, largely due to a 758% rise in international export sales. This growth was complemented by the first-year contributions from Leli Holland, which added $3.6 million in sales. However, the Produce segment experienced a decline in sales, dropping to $12.8 million from $14.3 million, attributed to a commission charged under a new supply agreement with Vanguard Food LP.

In terms of operational developments, Village Farms has made strides in geographic expansion and product innovation. The company has ramped up its cannabis production capacity in Canada and is actively exporting to international markets, including Germany and New Zealand. The recent acquisition of the remaining 15% equity interest in Leli Holland further solidifies its presence in the Netherlands, where sales are expected to commence in early 2025. The company also reported a significant increase in cash reserves, with cash and cash equivalents rising to $82.6 million from $24.6 million at the end of the previous fiscal year.

The filing also highlighted the company's strategic decision to privatize certain assets of its Fresh Produce segment, resulting in a gain of approximately $20 million. This move is part of a broader strategy to streamline operations and focus on higher-margin cannabis products. The company’s total assets increased to $418.4 million, up from $389.3 million, reflecting its ongoing investments in growth and operational efficiency.

Looking ahead, Village Farms expressed optimism about its future performance, particularly in the cannabis sector, where it aims to maintain its position as a leading low-cost producer. The company plans to leverage its existing cash reserves and operational capabilities to meet increasing demand in both domestic and international markets. However, it also acknowledged potential risks, including market volatility and regulatory challenges, which could impact its growth trajectory.