Village Farms International 2025 Q2 Earnings Strong Performance as Net Income Surges 211.4%

Village Farms International reported its Q2 2025 earnings on August 11, 2025. The company exceeded expectations with a significant turnaround in profitability. It returned to the black with positive EPS and net income, backed by strong international cannabis sales and strategic asset divestitures. The guidance for the remainder of 2025 remains optimistic, with a focus on disciplined growth and margin stability.

Village Farms International delivered a notable performance in the second quarter of 2025, with revenue rising 11.8% year-over-year to $59.90 million. This growth was broad-based, driven by robust cannabis sales across international markets and steady contributions from other segments. The Canadian cannabis division remained the top performer, generating $44.52 million in revenue, while U.S. cannabis sales added $3.84 million. The Netherlands cannabis division also contributed $2.48 million, underscoring the company’s global footprint. The produce segment accounted for $8.57 million in revenue, and the energy division contributed $483,000, completing the diversified revenue mix.

Village Farms International achieved a remarkable turnaround in profitability, with a net income of $26.24 million in Q2 2025, representing a 211.4% increase from the $-23.56 million net loss in Q2 2024. The company also reported positive earnings per share of $0.24, a dramatic improvement from the $-0.21 loss per share in the prior year period. This strong performance reflects effective cost management and strategic operational adjustments. The positive net income swing is a key indicator of the company's successful operational and financial repositioning.

The stock price of Village Farms International has shown significant momentum in the post-earnings period. It edged up 1.76% on the latest trading day, surged 40.00% during the most recent full trading week, and rose 77.69% month-to-date as of August 2025. Despite these positive price movements, a strategy of buying the stock on the earnings date following a revenue increase quarter-over-quarter and holding for 30 days underperformed, with a CAGR of -18.23%, an excess return of -89.93%, and a Sharpe ratio of -0.23. The negative performance metrics suggest a high-risk, low-reward scenario for investors relying on this strategy, despite the stock’s recent price appreciation.

CEO Michael A. DeGiglio described the quarter as "transformational," highlighting the privatization of one-third of the produce assets, which generated $40 million in proceeds and strengthened the company's balance sheet. He emphasized the strong international cannabis sales, particularly in the Netherlands, where the company achieved 82.5% market penetration and 700% year-over-year export growth. DeGiglio also announced plans to expand cannabis cultivation at the Delta 2 greenhouse in Canada, with production expected to begin in Q1 2027. The CEO expressed optimism about U.S. cannabis policy changes and potential expansion opportunities in Texas and other U.S. states, while emphasizing prudent scaling and organic growth strategies.

Looking ahead, the company expects international cannabis sales to remain in line with first-half performance, with Phase 1 of the Netherlands facility operating at full capacity and Phase 2 expected to ramp up in Q1 2026. Village Farms also anticipates continued Canadian cannabis gross margins within the 30% to 40% range, with a focus on profitable sales. For capital allocation, the company plans to fund the Delta 2 expansion with $10 million in investment, sourced from cash reserves and operational cash flow. DeGiglio emphasized disciplined growth and alignment with demand, with no indication of over-supply risks.

Additional News
Among the top news from Punch Newspapers on August 12, 2025, the Nigerian Federal Government announced the beginning of recruitment for five new permanent secretaries, including those for newly established ministries, signaling a shift in administrative priorities. In Enugu State, former Director-General of the Voice of Nigeria, Mr. Osita Okechukwu, stated that Governor Peter Mbah is "wholeheartedly welcome" to join the ruling All Progressives Congress (APC). In health and social development, Kano State allocated N500 million to reopen Community Management of Acute Malnutrition centers across the state to address severe child malnutrition. In security news, the Kano State Police Command issued a warning against underage tricycle riders operating on state roads. Additionally, the Niger State Government sought an out-of-court settlement with Badeggi FM Radio over its shutdown. These developments highlight key political and social trends in Nigeria over the past three weeks.