Village Farms International Inc. (NASDAQ: VFF) has announced Q3 2021 financial results in which sales were up 53% YoY and 13% QoQ to $27.4 million.

Village Farms reported adjusted EBITDA growth of 93% YoY 

The company had record revenue and adjusted EBITDA during the quarter, which is the first time since it launched its retail branded good at the end of 2019. The gross margin was 44% surpassing the company’s projected target of 30% to 40%. Adjusted EBITDA was up 93% YoY and 20% sequentially to $8.6 million, which is the 12th consecutive quarter the company is reporting positive adjusted EBITDA.

Village Farms CEO, Michael DeGiglio, said, “Our strong third quarter results were driven by another record performance from our Canadian cannabis business, Pure Sunfarms, as well as a partial quarter’s contribution from the acquisition of Balanced Health Botanicals, and improved results in our Village Farms Fresh Produce business. Pure Sunfarms achieved record net sales and adjusted EBITDA since launching its retail branded products two years ago, with a healthy 44% gross margin, driven by our focus on profitable market share, leading cost of production and leadership in premium quality flower. We are especially proud of this performance during a period that saw aggressive price reductions by certain competitors in what appears to be an attempt to “buy” market share, dispose of inventory, and/or generate needed cash, while we have maintained the same “Everyday Premium” pricing strategy we launched with two years ago, while enhancing our gross margin.”

Village Farms acquired Balanced Health Botanicals in Q3 

DeGiglio added, “With the acquisition of 100% of Balanced Health Botanicals during the quarter, our combined Canadian and U.S. cannabis operations generated $31.2 million in sales, comprising 43% of Village Farms’ total sales, and $9.3 million in adjusted EBITDA, with only a partial quarter’s contribution from Balanced Health.  Balanced Health not only provides a growing and profitable platform with exceptional cannabis experience for the U.S. CBD market opportunity but also the potential for expansion across all cannabinoid products, including high-THC products, as permissible under currently evolving legislation.”

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