-- Recent Facility Upgrades Expand Company's Leadership Position with
World's Largest EU-GMP Certified Cannabis Facility; International Export
Sales Grew 171% as Demand Continues to Increase
-- Consolidated Net Sales Increased 27% to $50.2 Million with Net Income of
$2.9 Million or $0.03 Per Share
-- Adjusted EBITDA from Continuing Operations Increased 118% to $9.9 Million
or 20% of Sales
-- Netherlands and Canadian Expansions Expected to Contribute to Stronger
Sales During 2H'26
-- After $6.4 Million of Share Repurchases, $9.2 Million in Capital
Expenditures, and $15.0 Million of Income Taxes Paid in Q1, Company
Expects to Grow its Cash Balance from Operating Cash Flow through Year
End
VANCOUVER, British Columbia, May 11, 2026 (GLOBE NEWSWIRE) -- Village Farms International, Inc. ("Village Farms" or the "Company") (NASDAQ: VFF) today reported financial results for its quarter ended March 31, 2026. All figures are in U.S. dollars unless otherwise indicated.
Notice Regarding Changes to Segment Financial Reporting
During the first quarter of 2026, the Company realigned its structure toward a unified cannabis operating model, including changes and additions to its leadership team, to gain operational efficiencies and better align resources with customer and market opportunities. The Company's operations are now organized, managed and classified into one reportable segment--Cannabis. The Company's remaining operations are not reportable segments, as defined by the applicable accounting standard, and are classified as Other. Corporate expenses reflect the operations costs that are not allocated to the Company's operating units.
Management Commentary
President and Chief Executive Officer Michael DeGiglio commented, "Our first quarter results reflect a strong start to the year and continued momentum in our largest markets, with adjusted EBITDA growth of 118% year-over-year significantly outpacing revenue growth of 27%, driven by our international businesses and continued leadership in Canada. Our operations and commercial teams are executing with precision, delivering continued margin strength and a fourth consecutive quarter of positive net income which clearly demonstrates the sustainably profitable nature of our expanding global cannabis enterprise."
"In Canada, we're continuing to benefit from efforts to shift our business toward higher-margin products, growing market share in targeted and profitable product categories, and our Pure Sunfarms brand has now increased its share of dried flower formats for 15 consecutive months. It was also a record quarter of international medical export sales, which grew 171% year-over-year and 60% sequentially, supported by increasing demand for Village Farms' EU-GMP compliant products, particularly in Germany where we are capturing an increasing share of a growing market and continue to see a stable pricing environment for our products for the foreseeable future."
"After making recent facility upgrades at our 4.8 million square foot production campus in British Columbia, we now believe we operate the world's largest EU-GMP certified cannabis facility. Our production capabilities, product quality, and regulatory and supply chain excellence provide us with a unique collection of durable competitive advantages that we have methodically built over the last six years. Our capacity expansion projects will begin contributing to stronger sales growth through the remainder of this year and into 2027, and we look forward to showcasing the combined strengths of our global platform as the year progresses."
"We remain in an excellent position to continue scaling profitably with increasing global demand, and believe the strength of our balance sheet and cash generation profile will enable flexibility to make additional accretive organic and acquisitive growth investments. We have a lot of attractive opportunities emerging for us in the U.S. and international markets, but we plan to be prudent and patient with respect to the various strategic M&A opportunities we are pursuing."
First Quarter 2026 Financial Highlights
(All comparable periods are for the first quarter of 2025 unless otherwise stated)
Cannabis Operations
-- Net sales increased 27% to $49.7 million from $39.2 million;
-- International export sales increased 171%; Canadian retail branded sales
increased 5%; Netherlands sales increased 448%;
-- Gross margin increased to 43% from 39% in the prior year period;
-- Net income improved to $4.8 million from $2.8 million, an increase of 68%
year-over-year;
-- Adjusted EBITDA from continuing operations increased 48% to $10.2 million
or 20.5% of sales, compared to $6.9 million or 17.5% of sales in the
prior year period;
-- Cash flow used in operations was ($11.8) million, driven by the impact of
US $15.0 million of Canadian income taxes paid in Q1 2026 related to tax
obligations from the previous fiscal year.
Strategic Growth and Operational Highlights
-- Surpassed the high end of its targeted gross margin range for cannabis of
30-40% for the fourth consecutive quarter; and recorded positive EPS from
continuing operations for the fourth consecutive quarter.
-- Maintained a top five overall market share position in the Canadian
market, and continued to hold the number one market share position in
dried flower. The Company's Pure Sunfarms brand expanded its market share
position for the 15th consecutive month in April, reflecting improving
consumer preference for the Company's strains following recent
introductions of packaging innovations that showcase the Company's flower
quality and aromas1.
-- International export sales from Canada increased 171% year-over-year to a
record high of $14.6 million. The Company believes it remains the largest
exporter of medical cannabis to Europe, with three of the top five
leading cultivars in Germany and four of the top 10 through our
distribution partners2.
-- The Company recently completed facility upgrades at its 4.8 million
square foot production campus in Delta, British Columbia, the Company now
believes it operates the world's largest EU-GMP certified cannabis
facility.
-- Began planting the first half of its Delta 2 greenhouse expansion in
Canada, which is expected to begin contributing to sales late in the
second quarter of 2026. The full expansion is expected to yield an
incremental 40 metric tonnes of annualized cannabis production, expanding
Canadian capacity by approximately 33% once completed in 2027.
-- The Company expects to commence all operations at its Phase II facility
in the Netherlands during Q2 and ramp to full capacity by the end of
2026. Once operating at full capacity, the Phase II facility is expected
to quintuple total Netherlands production to approximately 10 metric
tonnes annually.
Corporate and Other
-- Began a succession planning process for Chief Financial Officer Steve
Ruffini, who will remain an employee of the Company to help ensure a
smooth transition of CFO responsibilities, and will be appointed to a new
leadership position focused on evaluating strategic M&A opportunities.
-- Favorably amended and extended its loan with its long-term lender, Farm
Credit Canada (FCC). The Company improved the interest rate on the loan
by 50 basis points and extended the maturity date by three years and nine
months to February 3, 2031. The FCC loan carries a variable interest rate
currently below 7.0%, with a current balance of US $15.4 million.
-- On April 23, 2026, President Trump issued an executive order to (1)
immediately place both FDA-approved products containing marijuana and
marijuana products regulated by a state medical marijuana license in
Schedule III of the Controlled Substances Act, and (2) initiate an
expedited administrative hearing process to consider the broader
rescheduling of marijuana from Schedule I to Schedule III, which is
expected to commence on June 29, 2026. The Company believes it is poised
to benefit from President Trump's Executive Order, which, if the broader
rescheduling is enacted as anticipated, would represent a consequential
step in modernizing U.S. cannabis policy and support the development of a
regulatory framework more aligned with international drug policies.
(1. Based on estimated retail sales from HiFyre, other third parties and provincial boards.)
(2. Based on Company estimates and rankings compiled by German outlet Flowzz.)
Conference Call
Village Farms' management team will host a conference call to discuss its first quarter 2026 financial results today, Monday, May 11, 2026, at 8:30 a.m. ET. Participants can access the conference call via a webcast at Village Farms First Quarter 2026 Conference Call Webcast or on the Company website at Village Farms - Events. Participants wanting to access the conference call by telephone must register in advance at Village Farms First Quarter 2026 Conference Call Registration to receive telephone dial-in information.
The live question and answer session will be limited to analysts; however, others are invited to submit questions ahead of the conference call via email at investorrelations@villagefarms.com. Management will address questions received via email during the question-and-answer session as time permits.
About Village Farms International, Inc.
Village Farms is a global leader in cannabis, plant-based consumer packaged goods, and sustainable innovation. With a legacy built on decades of Controlled Environment Agriculture expertise and Dutch farming practices, today the Company is one of the world's largest and most profitable cannabis operators with an asset portfolio that spans over 7 million square feet of advanced greenhouse and indoor cultivation assets.
In Canada, Village Farms operates the world's largest EU-GMP certified cannabis facility at its production campus in Delta, British Columbia, and exports products to international medical markets. The Company is also a market share leader in dried flower formats and produces and distributes some of the country's highest quality and best-selling strains, including its flagship Pure Sunfarms Pink Kush, one of the most widely consumed strains on the planet. Village Farms' Canadian brand portfolio includes Pure Sunfarms, Fraser Valley Weed Co., Soar, Super Toast, Pure Laine, Tam Tams and Promenade.
In the Netherlands, the Company is one of only ten licensed operators in the country's regulated cannabis program, and in the United States its CBDistillery brand is one of the country's premier cannabinoid wellness platforms, and it also holds equity interests in cannabis businesses in Australia and Germany. Beyond cannabis, the Company's Clean Energy division transforms landfill gas into renewable natural gas, and it also holds an equity interest in Verdexa Holdings (formerly Vanguard Food LP), a private venture pursuing strategic acquisitions to build a premier branded food platform in North America.
Contact Information
Sam Gibbons Senior Vice President, Corporate Affairs Phone: (407) 936-1190 ext. 328 Email: sgibbons@villagefarms.com Lawrence Chamberlain LodeRock Advisors Phone: (416) 519-4196 Email: lawrence.chamberlain@loderockadvisors.com -------------------------------------------------
Cannabis Performance Summary
($ US thousands,
except % metrics) Three Months Ended March 31,
-------------------------------------------
2026 2025 Change
---------------- ----------
Total Net Sales $ 49,744 $ 39,227 27%
Total Cost of Sales $ 28,436 $ 23,958 19%
Gross Profit $ 21,308 $ 15,269 40%
Gross Margin % 43% 39% 10%
SG&A $ 14,820 $ 11,736 26%
Net income $ 4,780 $ 2,848 68%
Adjusted EBITDA from
Continuing
Operations(1) $ 10,196 $ 6,889 48%
Adjusted EBITDA from
Continuing
Operations
Margin(1) 20% 18% 11%
Cash flow from
Operations $ (11,810) $ 2,886 NM
(1) Adjusted EBITDA from continuing operations is not a recognized earnings measure and does not have a standardized meaning prescribed by GAAP. Therefore, Adjusted EBITDA from continuing operations may not be comparable to similar measures presented by other issuers. Management believes that Adjusted EBITDA from continuing operations is a useful supplemental measure in evaluating the performance of the Company because it excludes non-recurring and other items that do not reflect our business performance. Adjusted EBITDA from continuing operations includes the Company's 80% interest in Rose LifeScience.
Composition of Sales by Channel
For the Three Months Ended March 31,
------------------------------------------
Classification 2026 2025
------------------------- --------------------- -------------------
Cannabis:
Canadian Branded(1) $ 23,848 $ 22,761
Canadian Non-Branded 5,377 6,279
International Exports 14,581 5,388
U.S. Cannabis 3,133 3,904
Netherlands Branded 2,663 486
Other 142 409
---------------- ---------------
Total Cannabis 49,744 39,227
Other:
Produce 108 27
Clean Energy 386 426
--- ---------------- ---------------
Total Revenue $ 50,238 $ 39,680
=== ================ ===============
(1) Canadian Branded revenues are shown net of excise tax on products. Excise tax on products was $15,903 and $13,947 for the three months ended March 31, 2026 and 2025, respectively.
Presentation of Financial Results
The Company's financial statements for the three months ended March 31, 2026, as well as the comparative period for 2025, have been prepared and presented under United States Generally Accepted Accounting Principles ("GAAP").
RESULTS OF OPERATIONS
(In thousands of U.S. dollars, except per share amounts, and unless otherwise noted)
Three Months Ended
March 31,
----------------------
2026 2025
----------- --------
Sales $ 50,238 $ 39,680
Cost of sales (29,252) (25,501)
Gross profit 20,986 14,179
Selling, general and administrative expenses (15,942) (14,619)
Interest expense (523) (701)
Interest income 608 75
Foreign exchange (loss) gain (548) (84)
Other (loss) income (184) 22
------- -------
Income (loss) before taxes and equity method
investment income 4,397 (1,128)
Provision for income taxes (1,668) (983)
Equity method investment income, net of tax -- --
------- -------
Income (loss) from continuing operations 2,729 (2,111)
(Loss) Income from discontinued operations,
net of tax -- (5,004)
------- -------
Income (loss) including non-controlling
interests 2,729 (7,115)
Less: net (income) loss attributable to
non-controlling interests, net of tax 188 412
------- -------
Net income (loss) attributable to Village
Farms International, Inc. shareholders $ 2,917 $ (6,703)
======= =======
Adjusted EBITDA from continuing
operations((1) $ 9,890 $ 4,546
======= =======
Basic income (loss) per share attributable to
Village Farms International, Inc.
shareholders from:
Continuing operations $ 0.03 $ (0.02)
Discontinued operations - (0.04)
------- -------
Basic income (loss) per share attributable to
Village Farms International, Inc.
shareholders $ 0.03 $ (0.06)
======= =======
Diluted income (loss) per share attributable
to Village Farms International, Inc.
shareholders from:
Continuing operations $ 0.02 $ (0.02)
Discontinued operations $ -- $ (0.04)
------- -------
Diluted income (loss) per share attributable
to Village Farms International, Inc.
shareholders $ 0.02 $ (0.06)
======= =======
(1) Adjusted EBITDA from continuing operations is not a recognized earnings measure and does not have a standardized meaning prescribed by GAAP. Therefore, Adjusted EBITDA from continuing operations may not be comparable to similar measures presented by other issuers. Management believes that Adjusted EBITDA from continuing operations is a useful supplemental measure in evaluating the performance of the Company because it excludes non-recurring and other items that do not reflect our business performance. Adjusted EBITDA from continuing operations includes the Company's 80% interest in Rose LifeScience.
We caution that our results of operations for the three months ended March 31, 2026 and 2025 may not be indicative of our future performance.
SEGMENTED RESULTS OF OPERATIONS
(In thousands of U.S. dollars, except per share amounts, and unless otherwise noted)
For The Three Months Ended March 31, 2026
--------------------------------------------
Cannabis Other Corporate Total
--------- ------- ----------- --------
Sales $ 49,744 $ 494 $ -- $ 50,238
Cost of sales (28,436) (816) -- (29,252)
Selling, general
and
administrative
expenses (14,820) (512) (610) (15,942)
Other expense,
net (311) (222) (114) (647)
-------- ------ ------- -------
Income (loss)
before taxes
and equity
method
investment
income 6,177 (1,056) (724) 4,397
Provision for
income taxes (1,585) (83) -- (1,668)
Equity method
investment
income, net of
tax -- -- -- --
-------- ------ ------- -------
Income (loss)
including
non-controlling
interests 4,592 (1,139) (724) 2,729
Less: net loss
attributable to
non-controlling
interests, net
of tax 188 -- -- 188
-------- ------ ------- -------
Net income
(loss) $ 4,780 $(1,139) $ (724) $ 2,917
======== ====== ======= =======
Adjusted EBITDA
from Continuing
Operations((1) $ 10,196 $ (23) $ (283) $ 9,890
======== ====== ======= =======
Basic income
(loss) per
share $ 0.05 $ (0.01) $ (0.01) $ 0.03
======== ====== ======= =======
Diluted income
(loss) per
share $ 0.04 $ (0.01) $ (0.01) $ 0.02
======== ====== ======= =======
For The Three Months Ended March 31, 2025
--------------------------------------------
Cannabis Other Corporate Total
--------- ------- ----------- --------
Sales $ 39,227 $ 453 $ -- $ 39,680
Cost of sales (23,958) (1,543) -- (25,501)
Selling, general
and
administrative
expenses (11,736) (743) (2,140) (14,619)
Other (expense)
income, net (202) (526) 40 (688)
-------- ------ ------- -------
Income (loss)
before taxes
and equity
method
investment
income 3,331 (2,359) (2,100) (1,128)
Provision for
income taxes (895) (69) (19) (983)
Equity method
investment
income, net of
tax -- -- -- --
-------- ------ ------- -------
Income (loss)
from continuing
operations 2,436 (2,428) (2,119) (2,111)
Income (loss)
from
discontinued
operations, net
of tax -- (5,004) -- (5,004)
-------- ------ ------- -------
Income (loss)
including
non-controlling
interests 2,436 (7,432) (2,119) (7,115)
Less: net loss
attributable to
non-controlling
interests, net
of tax 412 -- -- 412
-------- ------ ------- -------
Net income
(loss) $ 2,848 $(7,432) $ (2,119) $ (6,703)
======== ====== ======= =======
Adjusted EBITDA
from Continuing
Operations((1) $ 6,889 $ (332) $ (2,011) $ 4,546
======== ====== ======= =======
Basic income
(loss) per
share from
continuing
operations $ 0.03 $ (0.03) $ (0.02) $ (0.02)
Basic income per
share from
discontinued
operations $ - $ (0.04) $ - $ (0.04)
-------- ------ ------- -------
Basic income
(loss) per
share $ 0.03 $ (0.07) $ (0.02) $ (0.06)
======== ====== ======= =======
Diluted income
(loss) per
share from
continuing
operations $ 0.03 $ (0.03) $ (0.02) $ (0.02)
Diluted income
per share from
discontinued
operations $ - $ (0.04) $ - $ (0.04)
-------- ------ ------- -------
Diluted income
(loss) per
share $ 0.03 $ (0.07) $ (0.02) $ (0.06)
======== ====== ======= =======
(1) Adjusted EBITDA from continuing operations is not a recognized earnings measure and does not have a standardized meaning prescribed by GAAP. Therefore, Adjusted EBITDA from continuing operations presented for these segments may not be comparable to similar measures presented by other issuers. Management believes that Adjusted EBITDA from continuing operations is a useful supplemental measure in evaluating the performance of the Company because it excludes non-recurring and other items that do not reflect the underlying business performance of the Company.
Reconciliation of Adjusted EBITDA from Continuing Operations to Net Income (Loss)
The following tables reflect a reconciliation of Adjusted EBITDA from continuing operations to net income (loss) from continuing operations, as presented by the Company:
For The Three Months Ended March 31, 2026
-------------------------------------------
(in thousands of
U.S. dollars) Cannabis Other Corporate Total
--------- ------- ----------- -------
Net income (loss)
from continuing
operations $ 4,780 $(1,139) $ (724) $ 2,917
Add:
Amortization and
depreciation 3,502 777 24 4,303
Foreign currency
exchange (gain)
loss 75 80 393 548
Interest expense
(income), net 19 176 (280) (85)
Provision for
income taxes 1,585 83 -- 1,668
Share-based
compensation 72 -- 304 376
Deferred
financing fees 72 -- -- 72
Loss on disposal
of assets 118 -- -- 118
Adjustments
attributable to
non-controlling
interest (27) -- -- (27)
-------- ------ ------- ------
Adjusted EBITDA
from continuing
operations((1) $ 10,196 $ (23) $ (283) $ 9,890
======== ====== ======= ======
For The Three Months Ended March 31, 2025
-------------------------------------------
(in thousands of
U.S. dollars) Cannabis Other Corporate Total
--------- ------- ----------- -------
Net income (loss)
from continuing
operations $ 2,848 $(2,428) $ (2,119) $(1,699)
Add:
Amortization and
depreciation 2,938 1,457 44 4,439
Foreign currency
exchange loss
(gain) (51) 48 (15) (18)
Interest expense
(income), net 141 509 (24) 626
Provision for
(recovery of)
income taxes 895 69 19 983
Share-based
compensation 48 13 84 145
Adjustments
attributable to
non-controlling
interest 70 -- -- 70
-------- ------ ------- ------
Adjusted EBITDA
from continuing
operations((1) $ 6,889 $ (332) $ (2,011) $ 4,546
======== ====== ======= ======
(1) Adjusted EBITDA from continuing operations is not a recognized earnings measure and does not have a standardized meaning prescribed by GAAP. Therefore, Adjusted EBITDA from continuing operations presented for these segments may not be comparable to similar measures presented by other issuers. Management believes that Adjusted EBITDA from continuing operations is a useful supplemental measure in evaluating the performance of the Company because it excludes non-recurring and other items that do not reflect the underlying business performance of the Company.
This press release is intended to be read in conjunction with the Company's Quarterly Report on Form 10-Q for the three months ended March 31, 2026, which will be filed with the Securities and Exchange Commission and will be available at www.sec.gov, and will also be filed in Canada on SEDAR (www.sedarplus.ca). In addition, quarterly financial reports can be found on the Village Farms website under Financial Reports within the Investors section.
Cautionary Statement Regarding Forward-Looking Information
As used in this Press Release, the terms "Village Farms", "Village Farms International", the "Company", "we", "us", "our" and similar references refer to Village Farms International, Inc. and our consolidated subsidiaries, and the term "Common Shares" refers to our common shares, no par value. Our financial information is presented in U.S. dollars and all references in this Press Release to "$" means U.S. dollars and all references to "C$" means Canadian dollars.
This Press Release contains forward-looking statements within the meaning of the United States Private Securities Litigation Reform Act of 1995, Section 27A of the U.S. Securities Act of 1933, as amended, (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), and is subject to the safe harbor created by those sections. This Press Release also contains "forward-looking information" within the meaning of applicable Canadian securities laws. We refer to such forward-looking statements and forward-looking information collectively as "forward-looking statements". Forward-looking statements may relate to the Company's future outlook or financial position and anticipated events or results and may include statements regarding the financial position, business strategy, budgets, expansion plans, litigation, projected production, projected costs, capital expenditures, financial results, tariffs, taxes, plans and objectives of or involving the Company. Particularly, statements regarding future results, performance, achievements, prospects or opportunities for the Company, the greenhouse vegetable or produce industry, the cannabis industry and market and our energy segment are forward-looking statements. In some cases, forward-looking information can be identified by such terms as "can", "outlook", "may", "might", "will", "could", "should", "would", "occur", "expect", "plan", "anticipate", "believe", "intend", "try", "estimate", "predict", "potential", "continue", "likely", "schedule", "objectives", or the negative or grammatical variation thereof or other similar expressions concerning matters that are not historical facts. The forward-looking statements in this Press Release are subject to risks that may include, but are not limited to: our limited operating history in the cannabis and cannabinoids industry, including that of Pure Sunfarms, Corp. ("Pure Sunfarms"), Rose LifeScience Inc. ("Rose" or "Rose LifeScience"), Balanced Health Botanicals, LLC ("Balanced Health"), and Village Farms International B.V. ("VF International"); the limited operational history of the Delta RNG Project in our energy segment and VF International; the legal status of the cannabis business of Pure Sunfarms, Rose and VF International and the hemp business of Balanced Health and uncertainty regarding the legality and regulatory status of cannabis and cannabinoid $(CBD)$ products in the United States; risks relating to the implementation and enforcement of the Continuing Appropriations, Agriculture, Legislative Branch, Military Construction and Veterans Affairs, and Extension Act, 2026; risks relating to the integration of Balanced Health and Rose into our consolidated business; risks relating to obtaining additional financing on acceptable terms, including our dependence upon credit facilities and dilutive transactions; potential difficulties in achieving and/or maintaining profitability; variability of product pricing; risks inherent in the cannabis, hemp, CBD, cannabinoids, and agricultural businesses; our market position and competitive position; our ability to leverage current business relationships for future business involving hemp and cannabinoids; the ability of Pure Sunfarms and Rose to cultivate and distribute cannabis in Canada as well as exports; risks related to the start-up of international production at our Netherlands operations; existing and new governmental regulations, including risks related to regulatory compliance and regarding obtaining and maintaining licenses required under the Cannabis Act (Canada), the Criminal Code and other Acts, S.C. 2018, C. 16 (Canada) for our Canadian operational facilities, and changes in our regulatory requirements; legal and operational risks relating to expected conversion of our greenhouses to cannabis production in Canada and in the United States; risks related to rules and regulations at the U.S. Federal (Food and Drug Administration and United States Department of Agriculture), state and municipal levels with respect to produce and hemp, cannabidiol-based products commercialization; retail consolidation, technological advances and other forms of competition; transportation disruptions; product liability and other potential litigation; retention of key executives; labor issues; uninsured and underinsured losses; vulnerability to rising energy costs; inflationary effects on costs of cultivation and transportation; recessionary effects on demand of our products; environmental, health and safety risks, foreign exchange exposure, risks associated with cross-border trade and the potential for tariffs and other trade restrictions; difficulties in managing our growth; restrictive covenants under our credit facilities; natural catastrophes; elevated interest rates; and tax risks.
The Company has based these forward-looking statements on factors and assumptions about future events and financial trends that it believes may affect its financial condition, results of operations, business strategy and financial needs. Although the forward-looking statements contained in this Press Release are based upon assumptions that management believes are reasonable based on information currently available to management, there can be no assurance that actual results will be consistent with these forward-looking statements. Forward-looking statements necessarily involve known and unknown risks and uncertainties, many of which are beyond the Company's control, which may cause the Company's or the industry's actual results, performance, achievements, prospects and opportunities in future periods to differ materially from those expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, the factors contained in the Company's filings with securities regulators, including this Press Release and the Company's most recently filed annual report on Form 10-K.
When relying on forward-looking statements to make decisions, the Company cautions readers not to place undue reliance on these statements, as forward-looking statements involve significant risks and uncertainties and should not be read as guarantees of future results, performance, achievements, prospects and opportunities. The forward-looking statements made in this Press Release relate only to events or information as of the date on which the statements are made in this Press Release. Except as required by law, the Company undertakes no obligation to update or revise publicly any forward-looking statements, whether as a result of new information, future events or otherwise, after the date on which the statements are made or to reflect the occurrence of unanticipated events.
Village Farms International, Inc.
Condensed Consolidated Statements of Financial Position
(In thousands of United States dollars, except share
data)
(Unaudited)
March 31, 2026 December 31, 2025
---------------- -------------------
ASSETS
Current assets
Cash and cash
equivalents $ 50,468 $ 81,189
Restricted cash 5,059 5,063
Trade receivables, net 26,643 23,151
Inventories, net 44,420 41,519
Other receivables 1,374 324
Prepaid expenses and
deposits 3,965 3,191
------------ ---------------
Total current assets 131,929 154,437
------------ ---------------
Non-current assets
Property, plant and
equipment, net 189,560 185,712
Investments 6,276 6,276
Goodwill 43,653 44,365
Intangibles, net 22,458 23,647
Deferred tax asset 611 694
Right-of-use assets 3,821 4,066
Other assets 2,576 3,899
------------ ---------------
Total assets $ 400,884 $ 423,096
============ ===============
LIABILITIES
Current liabilities
Trade payables $ 9,948 $ 15,747
Current maturities of
long-term debt 4,973 4,885
Accrued sales taxes 7,409 8,695
Accrued liabilities 17,117 13,960
Lease liabilities -
current 1,198 1,198
Income tax payable -- 12,151
Other current
liabilities 2,456 1,950
------------ ---------------
Total current liabilities 43,101 58,586
------------ ---------------
Non-current liabilities
Long-term debt 30,776 28,769
Deferred tax liability 17,711 18,494
Lease liabilities -
non-current 3,530 3,855
Other non-current
liabilities 1,979 3,330
------------ ---------------
Total liabilities 97,097 113,034
------------ ---------------
MEZZANINE EQUITY
Redeemable
non-controlling
interest 9,819 10,164
SHAREHOLDERS' EQUITY
Common stock, no par
value per share -
unlimited shares
authorized; 114,048,023
shares issued and
outstanding at March
31, 2026 and
115,722,312 shares
issued and outstanding
at December 31, 2025. 392,898 392,380
Additional paid in
capital 23,382 29,374
Accumulated other
comprehensive loss (12,654) (9,281)
Retained earnings (109,658) (112,575)
------------ ---------------
Total shareholders' equity 293,968 299,898
------------ ---------------
Total liabilities,
mezzanine equity and
shareholders' equity $ 400,884 $ 423,096
============ ===============
Village Farms International, Inc.
Condensed Consolidated Statements of Operations and
Comprehensive Income (Loss)
(In thousands of United States dollars, except per
share data)
(Unaudited)
Three Months Ended March 31,
----------------------------------
2026 2025
---------------- ------------
Sales $ 50,238 $ 39,680
Cost of sales (29,252) (25,501)
Gross profit 20,986 14,179
Selling, general and administrative
expenses (15,942) (14,619)
Interest expense (523) (701)
Interest income 608 75
Foreign exchange (loss) gain (548) (84)
Other (loss) income (184) 22
------------ -----------
Income (loss) before taxes and
equity method investment income 4,397 (1,128)
Provision for income taxes (1,668) (983)
Equity method investment income,
net of tax -- --
------------ -----------
Income (loss) from continuing
operations 2,729 (2,111)
(Loss) Income from discontinued
operations, net of tax -- (5,004)
------------ -----------
Income (loss) including
non-controlling interests 2,729 (7,115)
Less: net (income) loss
attributable to non-controlling
interests, net of tax 188 412
------------ -----------
Net income (loss) attributable to
Village Farms International, Inc.
shareholders $ 2,917 $ (6,703)
============ ===========
Basic income (loss) per share
attributable to Village Farms
International, Inc. shareholders
from:
Continuing operations $ 0.03 $ (0.02)
Discontinued operations - (0.04)
------------ -----------
Basic income (loss) per share
attributable to Village Farms
International, Inc. shareholders $ 0.03 $ (0.06)
============ ===========
Diluted income (loss) per share
attributable to Village Farms
International, Inc. shareholders
from:
Continuing operations $ 0.02 $ (0.02)
Discontinued operations $ -- $ (0.04)
------------ -----------
Diluted income (loss) per share
attributable to Village Farms
International, Inc. shareholders $ 0.02 $ (0.06)
============ ===========
Village Farms International, Inc.
Condensed Consolidated Statements of Cash Flows
(In thousands of United States dollars)
(Unaudited)
Three Months Ended March 31,
----------------------------------
2026 2025
----------------- -----------
Cash flows (used in) provided by
operating activities:
Income (loss) from continuing
operations including
non-controlling interests $ 2,729 $ (2,111)
Adjustments to reconcile net
income (loss) attributable to
Village Farms International,
Inc. shareholders to net cash
used in operating activities
of continuing operations:
Depreciation and amortization 4,303 4,439
Amortization of deferred
charges 72 --
Interest expense 523 701
Interest paid on long-term
debt (394) (794)
Unrealized foreign exchange
(gain) loss 71 49
Loss on disposal of assets 118 --
Non-cash lease expense 244 196
Share-based compensation 376 145
Deferred income taxes (415) (663)
Changes in non-cash working
capital items (24,390) (5,729)
------------- ----------
Net cash used in operating
activities from continuing
operations (16,763) (3,767)
------------- ----------
Cash flows (used in) provided by
investing activities:
Purchases of property, plant
and equipment (9,227) (1,249)
Other investing activities -- (300)
------------- ----------
Net cash used in investing
activities from continuing
operations (9,227) (1,549)
------------- ----------
Cash flows (used in) provided by
financing activities:
Proceeds from borrowings 3,589 --
Repayments on borrowings (1,208) (1,384)
Share repurchases (6,368) --
Proceeds from exercise of
warrants and options 469 --
Other financing activities (186) --
------------- ----------
Net cash used in financing
activities from continuing
operations (3,704) (1,384)
------------- ----------
Discontinued Operations
Net cash (used in) provided by
operating activities from
discontinued operations -- (2,610)
Net cash (used in) provided by
investing activities from
discontinued operations -- (1,290)
Net cash (used in) provided by
financing activities from
discontinued operations -- 1,000
------------- ----------
Net cash flows used in
discontinued operations -- (2,900)
------------- ----------
Effect of exchange rate changes
on cash and cash equivalents (1,031) 93
------------- ----------
Net increase (decrease) in cash,
cash equivalents and restricted
cash (30,725) (9,507)
Cash, cash equivalents and
restricted cash, beginning of
period 86,252 24,631
------------- ----------
Cash, cash equivalents and
restricted cash, end of period $ 55,527 $ 15,124
============= ==========
(END) Dow Jones Newswires
May 11, 2026 07:00 ET (11:00 GMT)