Village Farms International (NASDAQ:VFF) told investors at the iAccess Alpha Virtual Best Ideas Fall Investment Conference that it is positioned for further growth in international cannabis markets, supported by greenhouse capacity, EU GMP certification and a net-cash balance sheet.
Sam Gibbons, senior vice president of corporate affairs and investor relations, said Village Farms is a global cannabis pure-play following the May 2025 privatization of its legacy produce business. The company has approximately $290 million in trailing 12-month sales and a market capitalization of about $350 million, according to Gibbons.
Production Capacity and Canadian Operations
Village Farms operates 7.2 million square feet of greenhouse and indoor cultivation assets globally, though it is currently cultivating cannabis on roughly 30% of that footprint, Gibbons said. Its largest assets are located in Delta, British Columbia, and West Texas, while it also operates indoor facilities in Quebec and has completed a facility in the Netherlands.
The company’s Delta production campus includes 4.8 million square feet of capacity and is described by Village Farms as the world’s largest single-site EU GMP-certified cannabis production facility. Gibbons said EU GMP certification is important for supplying compliant cannabis products to European markets.
The company is nearing completion of a conversion of the second half of its Delta 2 greenhouse to cannabis production. Delta 2 and Delta 3 are expected to produce about 160 metric tons of dried, trimmed cannabis flower annually, excluding trim. The Delta 2 project is expected to add approximately 40 metric tons of capacity, representing a 33% increase in Canadian production capacity compared with fiscal 2025, according to Gibbons.
Village Farms currently produces more than CAD 200 million in trailing 12-month sales from Delta 3 and half of Delta 2, he said. The company also has the option to convert portions of its Delta 1 greenhouse from produce to cannabis production, at a rate of up to 25% annually over the next four or five years.
International Markets and Netherlands Expansion
Gibbons said international cannabis sales, including the Netherlands business, are approaching a CAD 100 million annualized run rate. Village Farms exports medical cannabis from Canada to Germany, the United Kingdom, Australia and New Zealand, and expects to enter multiple additional export markets later this year.
Germany is a key market, with Village Farms holding what Gibbons described as a leading share of a medical cannabis market exceeding CAD 1 billion. He attributed international export growth largely to regulatory changes and the expansion of medical cannabis programs in European countries.
Village Farms also holds one of 10 licenses in the Netherlands adult-use cannabis program. Unlike its export markets, the Netherlands operation relies on local assets and production. The company completed its Phase II Netherlands facility earlier this year, which Gibbons described as the company’s European headquarters. The facility is expected to ramp to full production through the first quarter of next year and bring maximum production capacity in the country to about 10 metric tons.
Gibbons said the company has not encountered difficulty selling product from its existing Phase I Netherlands facility. He said Village Farms aims to operate at the premium end of that market, where coffee-shop pricing can exceed EUR 10 per gram.
Brands, U.S. Optionality and Financial Position
In Canada, the company’s core adult-use brands include Pure Sunfarms, Super Toast and Fraser Valley. Gibbons said the brands have maintained strong consumer demand in dried flower, with products generally delivering THC levels in the mid-to-high 20% range and, in some cases, the low 30% range.
Village Farms also operates the CBDistillery direct-to-consumer CBD platform in the U.S. Gibbons said the business is evaluating possible participation in a CMMI pilot program, though regulatory clarity remains necessary. He said the company does not expect to activate a broader U.S. cannabis strategy until there is complete regulatory clarity.
The company continues to view its Texas greenhouse assets as a long-term opportunity. Village Farms owns roughly 50 acres of advanced greenhouse assets in Texas, which Gibbons said could represent a potential $400 million revenue opportunity if converted to cannabis production. He added that the company does not need to be a first mover in the state and believes its Texas operations could ultimately have lower production costs than its Canadian facilities.
- Village Farms reported CAD 73 million of cash at the end of the second quarter.
- The company had a net-cash position of about CAD 33 million.
- It expects stronger free cash flow in the second half as major capacity-expansion capital expenditures are substantially complete.
- The company completed a CAD 15 million equity placement with two U.S. institutional investors in June and repurchased CAD 7 million of shares during the first six months of the year.
Gibbons said Village Farms expects to grow its Canadian business generally in line with the country’s mid-single-digit market growth rate while pursuing international expansion, new product categories such as vapes and manufactured products, and selective strategic partnerships or acquisitions. Longtime Chief Financial Officer Steve Ruffini has transitioned to lead the company’s M&A efforts, he said.
While Gibbons said international markets could eventually experience price compression as they mature, he maintained that Village Farms’ production costs and EU GMP-certified supply chain provide competitive advantages. The company does not currently provide formal financial guidance.
About Village Farms International (NASDAQ:VFF)
Village Farms International, Inc is a vertically integrated agriculture company that grows, markets and distributes fresh produce and cannabis products. Its produce business focuses primarily on greenhouse-grown tomatoes, cucumbers and bell peppers, which are sold through retail and foodservice channels under the Village Farms and other brands.
The company operates greenhouse facilities and sources products across North America, serving major grocery retailers and other customers in the United States and Canada.
