Village Farms Q1 Sales Up 27% to $49.7M, Medical Exports Surge 171%
Village Farms International posted Q1 net sales of $49.7M (up 27% YoY) and net income of $4.8M (up 68%), led by 171% growth in medical cannabis exports to $14.6M. Branded Netherlands sales soared 448% to $2.7M as the Phase II Dutch facility prepares a Q2 ramp toward fivefold capacity.
1. Q1 Financial Performance
Village Farms delivered its fourth consecutive profitable quarter in Q1, reporting net sales of $49.7 million, up 27% year-over-year, and gross profit of $21.3 million, up 40%. Net income climbed 68% to $4.8 million, reflecting strong margin expansion and operational efficiency.
2. Medical Cannabis Exports
Medical cannabis export revenues surged 171% to $14.6 million, driven by sustained demand for EU-GMP-certified products in Germany and other European markets. The company leveraged its Delta, BC facility’s certifications to deepen distribution partnerships and win new cultivars.
3. Netherlands Market Expansion
Branded sales in the Netherlands jumped 448% to $2.7 million, reflecting early traction in consumer channels. Village Farms’ Phase II facility is on track to begin ramping in Q2, targeting a fivefold increase to roughly 10 tonnes of annual production by year-end 2026.
4. Capital Actions and Outlook
Village Farms repurchased $6.4 million of its shares, invested $9.2 million in capital expenditures, and paid $15 million in taxes, while forecasting positive cash flow growth through year-end. Despite a 20% drop in US sales, management expressed optimism on potential federal rescheduling and future US market opportunities.