Canadian cannabis producer Village Farms beats 'Q2 sales, EPS estimates on record yields, exports

Village Farms International

10/08/2026 12:09

Overview
Canada cannabis grower reported Q2 sales up 7% yr/yr, beating analyst expectations
Q2 adjusted EPS of $0.06 beat analyst expectations
Company achieved record cannabis harvest yields and export sales in Q2

Outlook
Netherlands operations expected to ramp to full production capacity by end of Q1 2027
Delta 2 expansion in Canada on track to reach 40 tonne run rate by mid-2027
Company expects to grow cash balance from positive operating cash flow through rest of 2026

Result Drivers
RECORD HARVEST YIELDS - Co said record yields and greater operating efficiencies at Delta, British Columbia facilities lowered production costs
EXPORT SALES GROWTH - Co reported record international export sales, up 74% yr/yr and 43% sequentially, driven by demand in Europe
SALES MIX AND MARGINS - Favorable sales mix helped drive nine percentage points of cannabis gross margin expansion

Company press release: ID:nGNX2V724G

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q2 Sales
Beat
$64 mln
$56.38 mln (3 Analysts)
Q2 EPS
Beat
$0.06
$0.02 (3 Analysts)
Q2 Net Income
 
$7.10 mln
 

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 healthcare facilities & services peer group is "buy"
Wall Street's median 12-month price target for Village Farms International Inc is $5.00, about 140.4% above its August 7 closing price of $2.08
The stock recently traded at 9 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads
Aug 7 - Canada's Canopy Growth Q1 revenue slightly misses estimates
Aug 7 - Canada's Algoma Central Q2 revenue rises on segment growth

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.)