Village Farms International, Inc. (NASDAQ: VFF) reported a wider net loss for the third quarter of 2019, reversing the positive momentum seen since the beginning of the year, due to a decline in produce sales and increase in expenses. The company’s stock closed Thursday’s regular trading at $6.80, down 4%.
The Canada-based Greenhouse vegetable producer reported a net loss of $5.08 million or $0.10 per share for the quarter, compared to a loss of $1.99 million or $0.04 per share in the same period of 2018.
Net loss before tax was
$6.5 million, which included a loss of $0.9 million from Canadian
joint venture Pure Sunfarms, compared to a net loss before tax of
$2.7 million last year.
sales declined 3.5% annually to $38.29 million. Consolidated sales,
including joint ventures, were $47.3 million, up 19% year-over-year.
“Pure Sunfarms’ achieved
its fourth consecutive quarter of positive EBITDA, with an industry
leading all-in cost of production of C$0.63, gross margin of 69% and
EBITDA margin of 56%. In the 12 months since adult-use cannabis was
legalized in Canada in October 2018, Pure Sunfarms has already
generated C$47 million in EBITDA, an especially impressive number
given that its operations were ramping up throughout most of that
period,” said Michael DeGiglio.
Shares of Village Farms gained 30% since the beginning of the year, and traded at an all-time low this week. The stock lost about 14% during Thursday’s extended session, following the announcement.
(this story will be updated shortly)