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1. Company Snapshot

1.a. Company Description

Village Farms International, Inc., together with its subsidiaries, produces, markets, and distributes greenhouse-grown tomatoes, bell peppers, and cucumbers in North America.It operates through four segments: Produce, Cannabis-Canada, Cannabis-U.S., and Energy.The company also owns and operates a power plant that generates and sells electricity, and provides thermal heat to British Columbia Hydro and Power Authority; produces and supplies cannabis products to other licensed providers and provincial governments in Canada and internationally; and develops and sells cannabinoid-based health and wellness products, including ingestible, edibles, and topical applications.


It markets and distributes its products under the Village Farms brand name to retail supermarkets and fresh food distribution companies, as well as products produced under exclusive arrangements with other greenhouse producers.The company was formerly known as Village Farms Canada Inc.and changed its name to Village Farms International, Inc.


in December 2009.Village Farms International, Inc.was founded in 1989 and is headquartered in Delta, Canada.

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1.b. Last Insights on VFF

Village Farms International's recent performance was driven by its successful focus on profitable sales and international expansion. The company's Q1 2025 results demonstrated a strong growth trajectory, with revenue increases and improved margins. Additionally, Village Farms' decision to privatize its fresh produce business and focus on its global cannabis growth opportunities is expected to unlock significant value and simplify its structure. The company's ownership of 160 acres of advanced greenhouse facilities and its export sales and Netherlands operating assets will increase its exposure to international markets. Furthermore, Village Farms' ownership interest in Vanguard Food LP provides incremental upside opportunity. The company's recent amendment to its FCC credit agreement reflects improved covenants and aligns with its strategic focus on cannabis.

1.c. Company Highlights

2. Village Farms International's Q3 2025 Earnings: A Record-Breaking Quarter

Village Farms International reported a strong third quarter in 2025, with consolidated net sales increasing 21% year over year to $66.7 million. The company's net income from continuing operations was $10.8 million or $0.08 a share, beating analyst estimates of $0.03. The adjusted EBITDA from continuing operations was $20.7 million, a significant increase from $4.7 million in Q3 of last year. The Canadian cannabis business drove this growth, with net sales reaching a new high of $64.1 million, a 29% year-over-year increase.

Publication Date: Nov -18

📋 Highlights
  • Consolidated Net Sales Growth:: $66.7 million, up 21% YoY with Canadian cannabis driving 29% YoY growth to $64.1 million.
  • Record Adjusted EBITDA:: $20.7 million (31% margin), up 309% in Canadian cannabis to $19.3 million (41% margin).
  • Strong Profitability:: Net income of $10.8 million ($0.09/share), surpassing U.S. cannabis peers in adjusted EBITDA margins (41%).
  • Financial Strength:: $88 million cash balance, $53 million net cash, and $35 million debt, enabling $10 million share repurchase program.
  • International Momentum:: Netherlands recreational sales contributed significantly, with Germany gaining 4Q consecutive market share leadership.

Canadian Cannabis Segment Performance

The Canadian cannabis segment delivered a strong performance, with gross margins of 56%, above the high end of the company's targeted range. According to Michael DeGiglio, the CEO, the high gross margin was attributed to "improved efficiency, higher crop yields, favorable pricing tied to SKU mix, lower packaging inputs, and improved margins from international exports." The adjusted EBITDA for Canadian cannabis improved 309% year over year to $19.3 million, resulting in an adjusted EBITDA margin of 41%.

International Market Expansion

The company is making significant progress in international markets, particularly in The Netherlands, where it has seen strong performance in both medical and recreational cannabis sales. Village Farms has also gained market share in Germany for four consecutive quarters and believes it is the number one market share holder. The company's EU GMP certification and ability to produce high-quality products at a low cost have contributed to its success.

Valuation and Outlook

With a P/E Ratio of 20.19 and an EV/EBITDA ratio of 12.58, the market is pricing in a certain level of growth for Village Farms International. Analysts estimate revenue growth of 7.0% next year. Given the company's strong performance in the third quarter and its expanding presence in international markets, it is well-positioned to continue growing and investing in its business. The company's healthy cash flow and strengthening balance sheet will enable it to support future expansion projects, including the recently approved $10 million share repurchase program.

Risk and Challenges

The company's expansion into new markets, such as Texas, is subject to regulatory risks, and the outcome is uncertain. However, Village Farms is cautious and will wait to see how the Department of Public Safety issues licenses. The competitive landscape in the Netherlands is also a challenge, but the company is focused on expanding its capacity and is well-positioned for opportunities in the future.

3. NewsRoom

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Canadian Cannabis Market Outlook for December 2025: Key Trends for Investors

Dec -02

Source: marijuanastocks.com

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Village Farms International Reaffirms its Commitment to the Texas Cannabis Industry

Dec -02

Source: globenewswire.com

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Comparing Village Farms International (NASDAQ:VFF) and Health and Happiness (H&H) International (OTCMKTS:BTSDF)

Nov -26

Source: defenseworld.net

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Village Farms Launches Promenade Brand's First Vape in Quebec

Nov -24

Source: globenewswire.com

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Sell Village Farms And Buy Organigram

Nov -24

Source: seekingalpha.com

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Three Canadian Cannabis Stocks Worth Watching This Week

Nov -18

Source: marijuanastocks.com

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Cannabis Investing Insight: Here Is How To Invest In Marijuana Stocks

Nov -12

Source: marijuanastocks.com

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International Cannabis Sales Boost Village Farms Q3 Earnings

Nov -12

Source: seekingalpha.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.14%)

6. Segments

Produce

Expected Growth: 10%

Village Farms International's 10% growth is driven by increasing demand for cannabis and hemp products, expansion into new markets, and strategic partnerships. The company's diversified product portfolio, including produce and CBD products, also contributes to growth. Additionally, investments in technology and infrastructure have improved operational efficiency, further supporting growth.

Cannabis - Canada

Expected Growth: 15%

Village Farms International, Inc.'s 15% growth in Cannabis - Canada is driven by increasing demand for recreational and medical cannabis, strategic partnerships, and expansion into new provinces. Additionally, the company's low-cost production and efficient supply chain management enable it to capitalize on the growing market, further fueling growth.

Cannabis - United States

Expected Growth: 12%

Village Farms International, Inc.'s 12% growth in the US cannabis market is driven by increasing legalization, rising demand for CBD products, and strategic partnerships. The company's focus on high-margin products, efficient production, and expanding distribution channels also contribute to its growth. Additionally, the growing acceptance of cannabis for medical and recreational use, particularly among seniors and women, further fuels the segment's growth.

7. Detailed Products

Produce

Fresh produce including tomatoes, cucumbers, bell peppers, and other vegetables and fruits

Flowers and Ornamental Plants

A variety of flowers, plants, and bouquets for decorative and aesthetic purposes

Cannabis

Cannabis products for recreational and medicinal use

CBD Products

CBD-based products including oils, tinctures, and topical creams

Lettuce and Leafy Greens

Fresh lettuce and leafy greens for salads, sandwiches, and other dishes

8. Village Farms International, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Village Farms International, Inc. is medium due to the availability of alternative products in the market, but the company's strong brand presence and customer loyalty mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is low for Village Farms International, Inc. due to the company's strong market position and limited buyer concentration.

Bargaining Power Of Suppliers

The bargaining power of suppliers is medium for Village Farms International, Inc. due to the presence of multiple suppliers, but the company's large scale of operations gives it some negotiating power.

Threat Of New Entrants

The threat of new entrants is high for Village Farms International, Inc. due to the relatively low barriers to entry in the industry, but the company's established brand and economies of scale provide some protection.

Intensity Of Rivalry

The intensity of rivalry is high for Village Farms International, Inc. due to the presence of several established competitors in the market, leading to a highly competitive environment.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 15.18%
Debt Cost 5.92%
Equity Weight 84.82%
Equity Cost 14.77%
WACC 13.43%
Leverage 17.90%

11. Quality Control: Village Farms International, Inc. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

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A-Score: 3.8/10

Value: 3.5

Growth: 3.1

Quality: 5.1

Yield: 0.0

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

3.35$

Current Price

3.35$

Potential

-0.00%

Expected Cash-Flows