Canada's Village Farms Q1 sales beat on international export sales

Village Farms International

11/05/2026 12:10

Overview

Canada cannabis producer's Q1 net sales rose 27%, beating analyst expectations

Adjusted EBITDA from continuing operations more than doubled year-over-year

Company attributes growth to record international export sales and Canadian market share gains

Outlook

Netherlands and Canadian expansions expected to contribute to stronger sales during 2H'26

Company expects to grow its cash balance from operating cash flow through year end

Company expects Delta 2 greenhouse expansion to begin contributing to sales late Q2'26

Result Drivers

INTERNATIONAL EXPORTS - Record international export sales, particularly to Germany, grew 171% year-over-year and 60% sequentially, supporting overall revenue growth

CANADIAN MARKET SHARE - Canadian retail branded sales increased 5% and Pure Sunfarms brand expanded its share of dried flower formats for the 15th consecutive month, reflecting gains in targeted and profitable categories

GROSS MARGIN IMPROVEMENT - Gross margin increased to 43% from 39% in the prior year period, surpassing the high end of the targeted range for the fourth consecutive quarter

Company press release: ID:nGNXm4KC7

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Sales
Beat
$50.20 mln
$47.81 mln (3 Analysts)

Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the fishing & farming peer group is "buy"

Wall Street's median 12-month price target for Village Farms International Inc is $5.00, about 94.6% above its May 8 closing price of $2.57

The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 18 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)