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

Village Farms International (NASDAQ:VFF) released its earnings results on Monday. The company reported $0.08 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.05 by $0.03, FiscalAI reports. Village Farms International had a return on equity of 7.62% and a net margin of 9.85%. The firm had revenue of $66.90 million during the quarter, compared to analyst estimates of $64.38 million.

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 Price Performance

Shares of VFF opened at $2.84 on Tuesday. Village Farms International has a twelve month low of $1.80 and a twelve month high of $4.99. The firm’s fifty day simple moving average is $2.80 and its 200-day simple moving average is $2.68. The firm has a market capitalization of $347.30 million, a price-to-earnings ratio of 16.28 and a beta of 1.45. The company has a current ratio of 3.17, a quick ratio of 2.25 and a debt-to-equity ratio of 0.13.

Insider Activity

In other news, Director Christopher C. Woodward bought 10,000 shares of the stock in a transaction that occurred on Tuesday, September 22nd. The stock was purchased at an average price of $3.06 per share, for a total transaction of $30,600.00. Following the completion of the purchase, the director owned 171,526 shares in the company, valued at approximately $524,869.56. This trade represents a 6.19% increase in their position. The purchase was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Company insiders own 13.20% of the company’s stock.

Analyst Upgrades and Downgrades

A number of equities research analysts have issued reports on the company. Weiss Ratings lowered Village Farms International from a “hold (c+)” rating to a “hold (c)” rating in a research report on Tuesday, October 27th. Wall Street Zen cut Village Farms International from a “buy” rating to a “hold” rating in a research note on Sunday, October 25th. Finally, Zacks Research raised Village Farms International from a “strong sell” rating to a “hold” rating in a research report on Monday, July 13th. Two research analysts have rated the stock with a Hold rating. Based on data from MarketBeat, the company has a consensus 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.