Canada's Village Farms Q4 sales rise 9%, but miss estimates

Village Farms International

12/03/2026 11:09

Overview

Canadaian cannabis producer's Q4 sales rose 9% yr/yr but missed analyst expectations

Adjusted EBITDA for Q4 missed analyst expectations

Company repurchased $6.7 mln in shares since Q3 and expanded cultivation capacity

Outlook

Company expects to harvest 15 tonnes of incremental cannabis capacity in Canada in 2026

Village Farms anticipates annual production capacity of 10 tonnes in the Netherlands once fully ramped

Company expects sequential growth in international medical export sales in Q1 2026

Result Drivers

CANADIAN CANNABIS GROWTH - Q4 Canadian Cannabis net sales rose 10% yr/yr, driven by higher international export sales and improved operating efficiency, which also boosted gross margin to 43%

INTERNATIONAL EXPANSION - International export cannabis sales increased 384% yr/yr, with strong demand in Germany and other markets, and Netherlands operations contributed new sales at full capacity

Company press release: ID:nGNX8ZnXPh

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q4 Sales
Miss
$49.60 mln
$52.98 mln (4 Analysts)
Q4 Adjusted EBITDA
Miss
$8.60 mln
$11.16 mln (4 Analysts)
Q4 Operating Cash Flow
$11.40 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", 1 "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 42.5% above its March 11 closing price of $3.51

The stock recently traded at 16 times the next 12-month earnings vs. a P/E of 22 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.)