{"id":525191,"date":"2021-08-09T07:04:34","date_gmt":"2021-08-09T11:04:34","guid":{"rendered":"https:\/\/www.marketnewsdesk.com\/index.php\/village-farms-international-reports-second-quarter-2021-financial-results-pure-sunfarms-achieves-38-sequential-net-sales-growth-and-192-sequential-adjusted-ebitda-growth-to-c9-1-million\/"},"modified":"2021-08-09T07:04:34","modified_gmt":"2021-08-09T11:04:34","slug":"village-farms-international-reports-second-quarter-2021-financial-results-pure-sunfarms-achieves-38-sequential-net-sales-growth-and-192-sequential-adjusted-ebitda-growth-to-c9-1-million","status":"publish","type":"post","link":"https:\/\/www.marketnewsdesk.com\/index.php\/village-farms-international-reports-second-quarter-2021-financial-results-pure-sunfarms-achieves-38-sequential-net-sales-growth-and-192-sequential-adjusted-ebitda-growth-to-c9-1-million\/","title":{"rendered":"Village Farms International Reports Second Quarter 2021 Financial Results: Pure Sunfarms Achieves 38% Sequential Net Sales Growth and 192% Sequential Adjusted EBITDA Growth to C$9.1 Million"},"content":{"rendered":"
\n

PR Newswire<\/p>\n<\/p><\/div>\n

\n

\n
\n \u2013 Second Quarter Marks Fourth Consecutive Quarter of Sequential Growth in Retail Branded Sales at 22% and 11th<\/sup> Consecutive Quarter of Positive EBITDA for Pure Sunfarms \u2013<\/i>
\n <\/b>\n <\/p>\n

\n
\n — Pure Sunfarms Becomes Top-Selling Licensed Producer of Dried Flower in Ontario<\/span>, Remains Top-Selling Dried Flower Brand in Ontario<\/span> and is Top-Selling Dried Flower Brand in Alberta<\/span> and British Columbia<\/span> \u2013<\/i>
\n <\/b>\n <\/p>\n

\n VANCOUVER, BC<\/span>, Aug. 9, 2021<\/span> \/PRNewswire\/ – Village Farms International, Inc. (“Village Farms” or the “Company”) (NASDAQ: VFF) (TSX: VFF) today announced its financial results for the second quarter ended June 30<\/span>, 2021.\u00a0 All figures are in U.S. dollars unless otherwise indicated.\u00a0 For Consolidated Results see below.<\/p>\n

\n Management Commentary<\/b>\n <\/p>\n

“We are so proud to report another record quarter for Pure Sunfarms’ retail branded sales, which grew 22% sequentially \u2013 the fourth consecutive quarter of 20%-plus growth \u2013 which contributed to total net sales growth of 38% sequentially, once again outpacing the broader retail cannabis market as we continue to gain national market share,” said Michael DeGiglio<\/span>, CEO, Village Farms.\u00a0 “Importantly, we are also reporting a 192% sequential increase in adjusted EBITDA for Pure Sunfarms this quarter to C$9.1 million<\/span>, a record since our Retail Branded Sales launch, and further evidence of the importance of our large-scale, low-cost cultivation capabilities combined with an exceptional management team and the right brand and product strategy.”<\/p>\n

“Pure Sunfarms remains well positioned to be the long-term market leader in the Canadian cannabis market as many industry participants continue to shift their strategies or combine businesses in an attempt to compete successfully. Our continued market share, leadership and growth, including our first ever quarter as the top-selling* Licensed Producer in Ontario<\/span>, gives us even more confidence that we will achieve our stated goal of 20% market share in dried flower in Canada<\/span>.”<\/p>\n

“The continued strong momentum in Retail Branded Sales further underscores the value of our initial focus on the dried flower category. The dried flower market, including pre-rolled products, still comprises more than 70%* of total retail sales, with second quarter dollar-value growth five-times that of the three largest 2.0 categories. With expected continued sales momentum going forward, and in view of potential growth opportunities, we have expanded our capacity by 50% and plan to begin cultivation in the completed half of Delta 2, our second, and now fully licensed, 1.1 million square-foot greenhouse facility next month.\u00a0 We continue to look forward to adding the second half of Delta 2 to our capacity next year, and have an additional 2.4 million square feet of production area on the same site at our Delta 1 facility that can be rapidly converted to cannabis production as the Canadian legal cannabis market continues to grow.”<\/p>\n

“In the United States<\/span>, we are encouraged by the federal cannabis bill recently brought forward by Senate leadership and view it as an integral step in the process of regulatory change that would allow Village Farms to participate in the high-THC cannabis market in the U.S. We have identified multiple potential pathways to participate in the U.S. high-THC cannabis market and continue to refine multiple strategies that will enable us to move swiftly and aggressively to leverage our tremendous cannabis success in Canada<\/span> for the largest cannabis market in the world, including strategies that could see us enter the U.S. market in advance of converting our Texas<\/span> operations.\u00a0 We are optimistic that we will continue to see substantive progress in the months to come and are planning accordingly.\u00a0 With the benefit of having now operated our Canadian cannabis business for several years, we expect our Texas<\/span> greenhouse operations can represent at least a $1 billion<\/span> sales opportunity in cannabis to Village Farms.”<\/p>\n

“Finally, we expect our Produce business to normalize toward the end of this year with indications that prices are trending back to\u00a0historical levels, as production volumes have improved throughout 2021.\u00a0 Our Texas produce greenhouse operations, with a replacement value in excess of $300 million<\/span>, and located in one of the best growing environments for cannabis in the continental United States<\/span>, represent one of our potential pathways to participate in the U.S. high-THC cannabis market. We continue to operate and manage these facilities for this optionality.”<\/p>\n

\n Pure Sunfarms’ Second Quarter and Other Recent Highlights
<\/b>
\n (Dollar Amounts are Before Village Farms’ Proportionate Share)<\/b>\n <\/p>\n