Village Farms is designated by the DEA for cannabis rescheduling hearings. Sales disruptions are expected to normalize by Q1 2025. VFF's branded sales margins show signs of recovery, reaching 30-40%. VFF holds a 6.2% market share in the Canadian cannabis market. Analyst Zuanic views VFF as undervalued compared to peers.
Upcoming elections in multiple states may alter U.S. cannabis regulations. U.S. cannabis market is estimated over $33 billion with 12% CAGR by 2030. Village Farms' cash flow improved to $5.7 million from last year's loss. Total sales rose by 19%, driven by Canadian cannabis segment's growth. Challenges in U.S. operations are compounded by ongoing regulatory hurdles.
Village Farms focuses on global cannabis platform and cost leadership. Raised projections due to strong growth in Canadian cannabis business. Approaching US market cautiously with significant greenhouse assets in Texas.