Village Farms Defies Odds With Revenue Beat In Q2, Despite 7% Sales Drop
Portfolio Pulse from Shivani Kumaresan
Village Farms International (NASDAQ:VFF) reported a 7% YoY sales decline in Q2 FY23 to $77.21 million, beating the analyst consensus estimate of $70.78 million. The gross profit jumped 81.8% to $11.4 million, with the margin at 14.8%. Adjusted EBITDA was $4.5 million versus $(10.3) million last year. EPS of $(0.01) beat the consensus of $(0.04). The company held $31.7 million in cash and equivalents as of June 30, 2023. VFF shares were up 10.25% at $0.67 at the time of publication.
August 09, 2023 | 2:47 pm
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Village Farms reported better than expected Q2 FY23 results despite a 7% YoY sales decline. The company's gross profit, adjusted EBITDA, and EPS all improved significantly. The positive earnings report led to a 10.25% increase in the company's stock price.
Village Farms' better than expected Q2 FY23 results and the significant improvements in its gross profit, adjusted EBITDA, and EPS are likely to have a positive impact on its stock price in the short term. The company's strong financial performance, despite a 7% YoY sales decline, indicates its ability to manage costs and improve profitability, which is a positive signal for investors.
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