DELTA, BC - Village Farms International has announced its financial results for the year ended and Q4 2014. While the overall 2014 results were down from last year, net sales for Q4 2014 increased by $3,028, or 10% to $34,766.
"While improved pricing positively impacted our fourth quarter financial performance, we are disappointed with our overall 2014 operating results,” says Michael DeGiglio, Chief Executive Officer. “Many of the positive initiatives implemented in 2014, which had tangible positive contributions, were concealed by poor pricing. We remain unwavering in our objectives to deliver a return to pre-hail storm financial results in 2015."
The report offers that the increase in net sales is primarily due to an increased average selling price for tomatoes of 13%, an increase in pepper pounds sold of 37%, as well as an increase in cucumber pieces sold of 94%.
DeGiglio continued, "Market conditions strengthened for larger tomato products in the final quarter of 2014, which had experienced poor pricing during the prior quarters of the year. Year on year TOV pricing was down 16%, almost all of it emanating from product out of our Canadian operations, however commencing with the fourth quarter TOV pricing improved and was up 9% over the fourth quarter of 2013. As previously mentioned pricing in Canada eroded at the beginning of 2014 with certain Mexican suppliers circumventing the US government's suspension agreement, by shipping directly from Mexico to Canada and then back into the US. This action coupled with increased supply and softer demand continued through the third quarter."
Other highlights from the report include:
- Revenue for the year ended December 31, 2014, decreased ($1,020) or (1%), to $136,615 compared to $137,635 for year end 2013.
- Cost of sales for the year ended December 31, 2014 increased $3,367, or 3%, to $122,730 from $119,363 for year end 2013.
- Income from operations for the year ended December 31, 2014, decreased
- EBITDA for the year ended December 31, 2014 decreased ($19,538) to $8,674 from $28,212 for year end 2013.
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