The Fly

Village Farms reports Q3 EPS (10c), consensus (9c)

Reports Q3 revenue $71.1M, consensus $76.34M. "The strong performance in our Canadian Cannabis business in Q3 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," said CEO Michael DeGiglio. "Our growth in retail branded sales continues to be driven by multiple factors…All of this contributed to Village Farms becoming the number one selling cannabis company in Canada across all product categories in October…In our U.S. Cannabis business, Balanced Health Botanicals continues to perform well despite the challenging consumer environment…Internationally, we continue to steadily move forward on multiple opportunities in select additional markets. Sales to Australia have accelerated through this year spurred by market growth and consumer brand affinity, with Q3 sales more than tripling from the first quarter of this year…Our Fresh Produce business continues to be impacted by a number of significant pressures including input cost inflation, adequate supply of product, which has challenged our ability to pass on higher costs to customers, and the ongoing challenges of the Brown Rugose tomato virus that is impacting growers globally. We are encouraged by the progress of the operational review we initiated late summer of this year with the goal of optimizing the profitability of this business."

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