Cannabis grower Village Farms' Q3 sales beat on higher exports

Overview

• Village Farms Q3 net sales rise 21% to $66.7 mln, beating analyst expectations

• Adjusted EBITDA for Q3 beats estimates, reaching $20.2 mln

• Company announces $10 mln share repurchase program, reflecting confidence in financial position

Outlook

• Company expects Dutch facility expansion to be operational in Q1 2026

• Village Farms anticipates entering new international markets in H1 2026

• Company sees capacity expansion in Canada supporting growth through 2026

Result Drivers

• CANADIAN CANNABIS - Record net sales and gross margin driven by higher-margin SKUs and international export sales

• INTERNATIONAL EXPORTS - 758% increase in international cannabis sales, driven by demand in Germany

• NETHERLANDS EXPANSION - Drachten facility at full capacity, supporting sales growth and profitability

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• Wall Street's median 12-month price target for Village Farms International Inc is $3.50, about 15.4% above its November 7 closing price of $2.96

• The stock recently traded at 19 times the next 12-month earnings vs. a P/E of 41 three months ago

Press Release: ID:nGNX5gzKl8

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)