VANCOUVER, B.C. - Village Farms International, Inc. has announced the financial results for its first quarter of the fiscal 2015 year.
According to the report, Chief Executive Officer Michael DeGiglio commented that while the first quarter of 2015 continued the quarter on quarter trend of improved market conditions over previous corresponding year’s quarterly period, the company also experienced historically low light levels throughout the entire first quarter and into the second quarter at its Texas locations.
The tomato price reportedly increased for the three months ending March 31, 2015 as a result of an increase in TOV price of 18%, as well as an increased mix of specialty tomatoes grown by the company.
“The lower light levels were the lowest since the inception of our west Texas operations in 1996,” stated in the report. “Over the first 16 weeks of the year our average light levels were 21% lower than the historical average with some weeks 45% lower. If not for the lower light levels our 2015 first quarter results would have exceeded our expectations.”
The operating results summary, according to the report, for the first quarter of 2015 were:
- (Note amounts in U.S. Dollars) Net sales increased 16% to $27.7 million for the first quarter of 2015 compared to $24.0 million for the first quarter of 2014
- EBITDA increased 96% or $1.0 million to $2.0 million in the first quarter of 2015 compared to $1.0 million in the first quarter of 2014.
- (Loss) per share of ($0.02) for the first quarter of 2015 versus ($0.01) for the first quarter of 2014
- Net (loss) increased ($0.6) million to ($0.9) million in the first quarter of 2015 compared to ($0.3) million in the first quarter of 2014.
“The low light levels continued until the end of April and will negatively impact our second quarter results,” DeGiglio continued, adding that the produce that is normally harvested in the first quarter was delayed and is now being harvested in the second.
According to the report, ample supply currently exists in the marketplace.
The company is also pleased that a US retailer has recently taken one of its new exclusive varieties national under the retailer’s private label, while other retailers are in the process of launching the same variety, as well as additional exclusive products in the coming months.
Another highlight the company noted was its first supplemental lighting investment at its Permian Basin facility. As to looking forward, DeGiglio stated that the company will remain focused on strategic developments and operational enhancements to positively impact its 2015 performance over 2014, as well as to put itself in a position to increase its market share with national retailers in both the U.S. and Canada.
