VFF Stock Forecast & Price Target

Village Farms International Inc. demonstrates a strong growth trajectory with its Produce segment being a major revenue driver, while the cannabis business also shows significant potential with a 34% year-over-year growth in domestic branded recreational sales, reaching C$41.8 million (US$30.5 million). The company has expanded its product offerings, evidenced by a substantial increase in flower SKUs and a remarkable 179% year-over-year growth in pre-roll sales, which are key contributors to its revenue. Furthermore, the cannabis segment's EBITDA margin improved to 11.8%, indicating enhanced operational efficiency and profitability within its diversified business model.

Village Farms International Inc. is facing significant challenges in its Produce segment, which has historically been its primary revenue source, reflected in a volatile market characterized by supply chain disruptions, cost inflation, and oversupply issues. The cannabis-related segments, particularly Pure Sunfarms, are experiencing declining sales, as evidenced by a 21% drop in retail sales for PSF flower in Q3 2023 compared to the previous year, alongside a broader trend of diminishing flower prices. Overall, the company's financial performance has been negatively impacted by falling export figures for cannabis products and a substantial EBITDA loss of $24 million in 2022, indicating ongoing operational difficulties.