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Village Farms International, Inc. has submitted its 10-Q filing for the quarterly period ended September 30, 2024.
The filing includes financial statements for the quarter, showing an increase in sales to $83,368,000 from $69,510,000 in the same quarter the previous year. The increase is attributed to higher sales in the Canadian Cannabis and Produce segments.
Cost of sales for the quarter was $67,660,000, representing 81% of sales, compared to 79% in the same quarter of the previous year. This increase in cost ratio is due to higher sales volume and costs in the Canadian Cannabis segment.
The company reported a gross profit of $15,708,000 for the quarter, compared to $14,621,000 in the previous year, with the increase attributed to improved performance in the Produce segment.
Selling, general, and administrative expenses increased to $16,540,000 from $15,822,000, primarily due to increased commercial and marketing expenses in the Canadian Cannabis segment.
Net loss for the quarter was $820,000, compared to $1,299,000 in the previous year. The reduction in net loss is attributed to improved gross margins and a gain on foreign currency.
Cash provided by operating activities was $9,936,000, while cash used in investing and financing activities was $8,227,000 and $8,118,000, respectively.
Village Farms had a working capital of $65,441,000 as of September 30, 2024. The company believes its existing cash and operating activities will provide sufficient liquidity for the next 12 months.
The filing also details various financial agreements, including a term loan with Farm Credit Canada and a revolving line of credit with Bank of Montreal (BMO-0.16%).
Village Farms does not anticipate cash dividend payments to common stockholders in the near future.
The company identified a material weakness in its internal controls over financial reporting related to user access and program change-management in its Produce segment.
Village Farms continues to focus on expanding its Canadian Cannabis market share and exploring international opportunities, leveraging its cultivation expertise and low-cost production.
This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Village Farms International Inc. quarterly 10-Q report dated November 7, 2024. To report an error, please email earnings@qz.com.