Village Farms International Inc (TSX:VFF) shares moved lower after the company reported mixed third quarter earnings.
The company, which specializes in controlled environment farming for a range of categories from grocery produce to cannabis, reported an earnings beat, with a loss per share of $0.01 ahead of estimates of a loss per share of $0.04. In the year-ago quarter, its loss per share was $0.10.
Revenue of $69.5 million, however, represented a 2% decline from the year-ago quarter and fell short of expectations of $72.2 million.
Its Canadian cannabis sales declined 5% to $28.8 million and its U.S. cannabis sales slipped from $5.1 million to $5 million, while its Village Farms fresh produce segment saw its sales increase slightly year-over-year from $35.5 million to $35.7 million.
“Solid, profitable performance from each of our Canadian and U.S. cannabis businesses, together with another quarter of significant year-over-year improvement in our fresh produce operations, is proving out our strategic decision to build upon our unmatched expertise in controlled environmental agriculture to deliver positive cash flow and profitability as we pursue growth in each of our businesses,” Village Farms CEO Michael DeGiglio said in a statement.
Village Farms shares traded down 3.2% at US$0.75 on Wednesday afternoon.
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