Why did VFF's Q2 earnings exceed expectations?

Village Farms International's (VFF) Q2 earnings exceeded expectations due to several key factors:

1. **Revenue Growth**: The company experienced an 18% increase in full-year revenue, reaching $336.2 million for the year 2024. This growth was primarily driven by a 31% rise in Canadian Cannabis sales and a 17% increase in VF Fresh sales, despite a decline in U.S. Cannabis sales. The fourth quarter saw a notable 11% year-over-year increase in revenue, totaling $83 million, which contributed to the overall earnings beat.
2. **International Sales Growth**: Village Farms International saw significant growth in its international cannabis sales, with exports to international medical markets increasing by 113% year-over-year. The company anticipates that its international medicinal export sales will triple in 2025. This expansion into new markets has been a positive contributor to the company's revenue growth.
3. **Fresh Produce Business Improvement**: The Fresh Produce business showed a 17% year-over-year increase in sales, reaching $43.3 million in the fourth quarter. This segment's improved performance, particularly in terms of adjusted EBITDA, has positively impacted the company's financial results.

Overall, Village Farms International's strategic focus on organic growth in key markets, along with operational efficiencies and new product initiatives, has likely contributed to its revenue outperformance.