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Village Farms International Inc. (VFF-3.28%) has submitted its Form 10-K filing for the fiscal year ended December 31, 2024.
The filing includes financial statements for the year, showing an increase in sales to $336,181,000 from $285,603,000 in the previous year. This increase was primarily driven by a rise in Canadian Cannabis sales and VF Fresh sales, partially offset by a decrease in U.S. Cannabis sales.
Cost of sales for the year increased to $288,781,000 from $236,177,000 in the previous year. The increase was mainly due to higher costs in the Canadian Cannabis and VF Fresh segments, partially offset by a decrease in U.S. Cannabis costs.
The company reported a gross margin of $47,400,000 for the year, a decrease from $49,426,000 in the previous year. The decline in gross margin was attributed to a non-cash inventory impairment and a decrease in U.S. Cannabis gross margin.
Selling, general, and administrative expenses increased to $71,048,000 from $65,501,000, primarily due to higher commercial and marketing expenses in the Canadian Cannabis segment.
Interest expense decreased to $3,365,000 from $4,509,000, reflecting a decrease in the overall borrowing base and interest rates.
The company recorded goodwill and intangible asset impairments of $11,939,000, primarily related to the U.S. Cannabis segment due to underperformance and new restrictions on CBD sales.
Net loss attributable to Village Farms International, Inc. shareholders was $35,850,000, compared to a net loss of $34,798,000 in the previous year.
Adjusted EBITDA for the year decreased to $1,788,000 from $7,585,000, primarily due to a decrease in adjusted EBITDA of the Canadian Cannabis segment resulting from the inventory impairment.
The Canadian Cannabis segment reported an increase in net sales to $148,856,000 from $114,030,000, driven by increased branded and non-branded sales, and international sales, despite an unfavorable impact of exchange rate fluctuations.
The U.S. Cannabis segment saw a decrease in net sales to $17,390,000 from $20,330,000, primarily due to new restrictions on CBD sales in eight states and lower direct-to-consumer sales.
The Produce segment reported an increase in sales to $169,184,000 from $151,243,000, primarily due to an increase in pounds sold and supply partner average selling price.
The company continues to face risks related to regulatory changes, competition, and market demand fluctuations in the cannabis and produce industries, as well as financial and operational challenges.
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. annual 10-K report dated March 13, 2025. To report an error, please email earnings@qz.com.