Village Farms International (NASDAQ:VFF) Releases Quarterly Earnings Results, Beats Estimates By $0.03 EPS

Village Farms International (NASDAQ:VFF) announced its quarterly earnings results on Monday. The company reported $0.08 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.05 by $0.03, FiscalAI reports. The business had revenue of $66.90 million during the quarter, compared to the consensus estimate of $64.38 million. Village Farms International had a return on equity of 7.40% and a net margin of 9.73%.

Here are the key takeaways from Village Farms International’s conference call:

• Q3 net sales were $66.9 million, flat year over year, while adjusted EBITDA fell to $18.2 million from $20.7 million and net income declined to $10 million from $10.8 million. Lower Canadian trim margins and higher operating expenses weighed on results, though EBITDA improved 18% sequentially.
• International exports rose 75% year over year to $20.8 million, with management saying demand for EU GMP-compliant product remains ahead of available supply and that it has not reduced pricing. The company said its international business remains capacity-constrained ahead of production increases.
• Canadian trim spot prices were down about 75% year over year in Q3, contributing to lower cannabis gross margins and non-branded sales. Management believes trim demand and pricing began to normalize in Q4, citing October orders and new supply agreements, but that recovery is not yet reflected in reported results.
• Village Farms said its Delta 2 expansion is on track to reach a 40-metric-ton annual run rate by mid-2027, while its Groningen facility is fully planted and expected to support stronger sales. It also exercised an option to convert 25% of its Delta 1 greenhouse to cannabis production, though no conversion decision has been made.
• The company is preparing to operationalize its 30-acre Monahans, Texas greenhouse for cannabis production within 12 months, contingent on regulatory pathways opening. Management also cautioned that Q4 may face typical produce and international-order seasonality, which could cause sequential revenue variability.

Village Farms International Stock Performance

NASDAQ VFF opened at $2.67 on Wednesday. Village Farms International has a 52-week low of $1.80 and a 52-week high of $4.99. The company has a 50-day simple moving average of $2.79 and a 200 day simple moving average of $2.67. The company has a debt-to-equity ratio of 0.13, a quick ratio of 2.25 and a current ratio of 3.17. The company has a market capitalization of $326.50 million, a PE ratio of 15.71 and a beta of 1.46.

Insider Activity

In related news, Director Christopher C. Woodward purchased 10,000 shares of the stock in a transaction that occurred on Tuesday, September 22nd. The shares were bought at an average price of $3.06 per share, with a total value of $30,600.00. Following the acquisition, the director owned 171,526 shares of the company’s stock, valued at $524,869.56. This trade represents a 6.19% increase in their position. The purchase was disclosed in a filing with the SEC, which is accessible through this hyperlink. 13.20% of the stock is currently owned by insiders.

Analysts Set New Price Targets

A number of research firms have issued reports on VFF. Wall Street Zen downgraded shares of Village Farms International from a “buy” rating to a “hold” rating in a report on Sunday, October 25th. Weiss Ratings downgraded shares of Village Farms International from a “hold (c+)” rating to a “hold (c)” rating in a report on Tuesday, October 27th. Two equities research analysts have rated the stock with a Hold rating. Based on data from MarketBeat, Village Farms International currently has an average rating of “Hold”.

About Village Farms International

Village Farms International, Inc. (NASDAQ:VFF) is an agriculture company that grows, markets and distributes fresh produce and cannabis. Its produce business focuses on greenhouse-grown tomatoes, cucumbers and peppers, including conventional and organic offerings sold under the Village Farms brand and through retail and foodservice channels. The company operates greenhouse and distribution facilities in the United States, Canada and Mexico, serving grocery retailers, wholesalers and foodservice customers across North America.