On Friday, May 10, VFF stock jumped nearly 15% after the Village Farms Q1 report came out.
Here's what we know.
VFF Stock Soars on Q1 Report
Vancouver-based Village Farms International (TSX:VFF) (NASDAQ:VFF) announced its financial results for Q1 2019. Most notably, the cannabis company, which is the only Canadian publicly traded greenhouse produce company, said Q1 sales increased to $37.3 million. This figure compares to $29.5 million. Net income before tax also improved to $12.1 million; it was during this quarter that Village Farms' common shares also began trading on the Nasdaq.
In regards to its joint venture in the first-quarter, Village Farms CEO Michael DeGiglio said: "We are thrilled to report that our Canadian cannabis joint venture, Pure Sunfarms, delivered its second consecutive quarter of profitability, with net income of US$8.6 million on sales of US$10.8 million." This was made possible because "production at the 1.1 million square foot Delta 3 facility continued to ramp up on plan," explained DeGiglio.
The Village Farms Q1 report was positive enough for VFF stock to jump significantly Friday.
According to Yahoo Finance, as of 2:33 PM EDT, VFF stock is trading at $16.85 on the TSX. This puts the cannabis stock up 14.16%.
Good Things Happening and Big Plans Ahead
According to DeGiglio, VFF is trying to capitalize on the popularity of hemp and hemp-derived CBD in the United States. Now is the time to do it too, considering, according to DeGiglio, the company's "cannabis and hemp-derived CBD opportunities come at a time when our legacy vegetable business is under increasing pressure from more and cheaper imports from Mexico."
Further, the cannabis company plans to continue to "explore additional hemp opportunities in Mexico and Latin America" now that its hemp/CBD program is underway.
What do you think about the Village Farms Q1 report? Should VFF stock jump even more Friday? Moreover, do you think the future of Village Farms International is a positive one?
Let us know in the comments below!
Featured image: DepositPhotos © OpenRangeStock