Benzinga | Aug 9, 2021 09:31AM EDT

Village Farms' Pure Sunfarms Cannabis Co. Revenue Jumps 41% To $24.8M, Positive Adjusted EBITDA Of $7.4M

Village Farms International, Inc. (NASDAQ: VFF) (TSX:VFF) reported its second-quarter financial results on Monday with consolidated sales of $70.4 million, which compares to $47.6 million in the same period of 2020. The company attributed the boost in sales mostly to the inclusion of Pure Sunfarms' second-quarter revenues of $24.76 million and also to improved produce supply partner sales.

Consolidated Second Quarter Financial Highlights

* Quarterly gross margin increased $1.7 million reaching $5.27 million, compared to $3.53 million in the corresponding period of the prior year;

* Net loss for the period amounted to $4.5 million or a loss of $0.06 per share, versus a net loss of $100.000 or $0.01 loss per share in the second quarter of 2020;

* Adjusted EBITDA for the period reached $1.6 million, compared to $2.3 million in the same quarter of the previous year;

Pure Sunfarms' Second Quarter Key Takeaways

* Pure Sunfarms adjusted EBITDA improved 192% sequentially reaching record CA$9.1 million ($7.4 million) since the rollout of its retail branded products in 2019; This marks, the company's 11th consecutive quarter of positive adjusted EBITDA;

* Total net sales hit CA$30.4 million, compared to CA$12.9 million in the same period of 2020;

* Net income for the period amounted to CA$4.0 million, versus net income of CA$1.0 million in the corresponding quarter of the previous year;

* The gross margin was 40%, compared to 33% in the second quarter of 2020;

* Its retail branded sales improved 135% year-over-year, and 22% sequentially, having the fourth consecutive quarter of sequential growth;

* Sunfarms was the top-selling brand of dried flower products in Alberta, British Colombia and with the Ontario Cannabis Store for the quarter;

"We are so proud to report another record quarter for Pure Sunfarms' retail branded sales, which grew 22% sequentially -- the fourth consecutive quarter of 20%-plus growth -- 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," Michael DeGiglio, Village Farms CEO stated. "Importantly, we are also reporting a 192% sequential increase in adjusted EBITDA for Pure Sunfarms this quarter to C$9.1 million, 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."

Price Action

Village Farms' shares were trading 1.11% lower at $9.80 per share during Monday's pre-market session.

Photo: Courtesy of Shelby Ireland on Unsplash