VFF - Earnings call 3 2023 | Village Farms International, Inc.

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Operator

Good morning, ladies and gentlemen. Welcome to Village Farms International's Third Quarter 2023 Financial Results Conference Call. This morning, Village Farms issued a news release reporting its financial results for the third quarter ended September 30, 2023. That news release, along with the company's financial statements are available on the company's website at villagefarms.com under the Investors heading. Please note that today's call is being broadcast live over the Internet and will be archived for replay both by telephone and via the Internet, beginning approximately 1 hour following completion of the call. during access begin, are that call. let may made to news in forward-looking how formal be we the release.Before me today of the this available replays today's statements part Details of after conference or remind you material providing statements, which applied many in control. beyond our were assumptions of Certain these are These that those results actual materially from could expressed statements. subject implied to a forward-looking of number to are cause statements risks uncertainties in or and differ and risks and uncertainties contained A plus. SEDAR its available summary and assumptions, of the ended filings year SEC these company's XX-Q the the Form the quarter be securities on XXXX, September Canadian is EDGAR various December for underlying in including XX, XX, and ended for will XX-K, XXXX, with MD&A regulators, which are turn call made no we law, of Village any such now as applicable Officer Executive and statements.I update revise Farms today's Michael undertake by required of International. except or the forward-looking would These over to statements to as DeGiglio, securities Chief obligation publicly to date, like Please go ahead.

Mike DeGiglio

Patti President joining Corporate morning, Chief Officer; for are Vice thank Gillin you Steve today's Vice Smith, Financial Controller. on Corporate Liz. Good Lefever, With Thanks, Ruffini, call. and and our Affairs; President, us Ann me of

we proving in net proud beginning confident consumer. the and basis. model from for and I'm the of we our that quarter cash Canadian without the am businesses just share continued profitable not I consolidated our cash line the each And are from delivered profitability These business flow. test of am also of income. cash more Canadian pure acumen, and on up sustainable and format, for I bottom Cannabis commitment a Canadian cannabis and positive this Farms each results Canadian our our The turning flow, That's of QX. cash recovering loss am execution.Starting review financial flow As business, industry. our cash of for team, from and contributions just grateful #X further of particularly to positive EBITDA adjusted net a questions.So and from is what nationally quarter. out U.S. operating will with Village across-the-board consolidated per and in shelf, operations, which open quarter everything per highlights another resonates We not on the pleased positive team's $X.XX operations possible businesses, generation true team the generated of were not usual Each test pleased of adjusted in a in determination, we every of the call trends the model. the report share and are with the are day the produce execution retail whether Steve contributions flow, saw a which with our another on believe improved narrowing EBITDA.I'm is business positive the also a results a regained and improvement, month EBITDA moment. in results we the at a quarter members, the share, of with positive operating at quarter the #X our of the with year-over-year I highlights of adjusted and to for true cannabis the fresh significant sustainable, October, adjusted number then for There do are most the to each our segments. also third I

competitive to turn, our both unrelented enables and efficiencies. focus international critical. Canadian quarter capabilities with are the in moats the in is first reinvestment positive growth. result is The all flow organic another market operational commercialization, organic This, reinvestment adjusted EBITDA Farms which innovation, the drive Village These fund direct us and pillars markets and consumer to will accessible.The These mind. production, of cultivation cash build become in branding include put, the and strive generation. on in they as of Simply future we

newness reinvestment on products in-country which up continuous as and market it the profitable the more This share include as launches for of where also which that It of both top wins strength business, improvement, quarter international focus is is contributing the model.The new our our quality Canadian profitable rankings our profitability. export share second matters: and quarter, market our and are gains. highlight importantly, brands based a development on to and our business are showing well includes

we market don't As a chase share. unprofitable reminder,

for means that that new increased sometimes last pace with QX launches. I And premium Soar discussed of X added super brand, a These The in as after X became a success continued flow. which ago. brand for quickly Toast saw our profitability foregoing and flower on flower newness a consumer top number also growth X strains cash top all included convenience call and preference continued Super a noteworthy targeted line brand, the for dried nationally its of launch brands.We our of year of our

Valley ongoing Ontario. infused know, there the Soar's strains During we the BC few part out.In many Quebec, also best-selling innovation expanded of in examples just entirely history the as calendar. cultivars, a of Amnesia, blunts year out our during Pineapple as are QX, you our was God Recently, premium one basis and the dried These and shipments with the QX an time we which Also side, brand, flower vape a offering an with launches in was offerings, category under sold launch SKU of nationally. our selling are Soar also new the protocols just our X our launched one exclusive QX. product including Strawberry had on of on rapidly first which largest as #X of and first Fraser products of new

launches as So themselves working to important ensure between with our these new as existing sustainable protocols portfolios growth. in is

out in flow market so existing license efforts cash the the #X currently QX from on expansion retail I'm nationally. Our launches, are portfolio, are our underway.Importantly, is in decided product share in reclaimed from October. the and results see doing the proving success which Year-to-date, evidenced to and we our to continued by #X are onset, spot shelf. at in producer noted generation, we addition they And the ranked as the the QX

plans the dynamics the achieved channel to market this the to profitability successful the been efforts. quarters through of As To acquisitions. in variance team were share top-selling we in of than decision increasing by opportunities.International start-up up top flower cultivation, Sunfarms from not the the year, growth our in position and commercialization challenged to long-term competitor also and nationally share contributed is attained nonbranded of bulk but to base, less And benefit XX acquisitions the Rose the fastest-growing reflects market to have producer year. With their but here its for spot contribution second in the third geography, in leadership and nationally.What's and allow I Netherlands and I've small for the strategic by you shareholder want the to our remind and the program. nationally a noteworthy LifeScience. purchasing the credit, the the fold a rollout QX, achieved our driving position. And will dried the margins trend the I does supply strong we respect here the were the speaking I to end more that market neck for predictable, a and branded which of and most, business. #X a which teams.During via issued and third X This flower the than consecutive it breadth organic flower, our Year-to-date, the that of clarity new especially #X more of will quarter, markets, X.X October, in by recognize it sales, growth admit not one to product provided to contribution which only alongside which of Canadian steady with the it of is at improve value who quarter, in we by the the sales that legal potential of for of Rose the multiple be does typically We behind recreational Rose add and in the final these in as -- just hold again, competitor an retake for update reflecting Quebec as it's at latest than data share underscore our the government we sitting a producer top focus in note spot shows participation in these #X is proving of relentless expansion innovation sales share geography. Leli the customers that program. Holland, months we the we are has international brand, licenses purpose-driven I first of sales, industry market the growth of favorable now the Rose Pure nature last the most ranking highlight X our did return has a return cannabis due had our dried third X end in neck recently this on to partnership increase province. -- this business expect we Canada, largely sales. if expect between out higher from market.As geographies, of of

opportunity including continued wellness we be Botanicals we achieving we market and performance, positive profitability integrated Even adjusted forward on and with a potential the Health now brand generating of excited positive in We income, challenging and and are net moving in products. of regulatory again moving EBITDA about model.Turning a fresh favorable its visual produce. flow. another CBDistillery, to business the on quarter flow environment.Now generation are attributes month, new supply belief on revamped for looks a focus Last for to cash cannabis and now U.S. of fully in to stabilized Balanced launched this are a U.S. our once demonstrated what cash the focused website, CBD,

took step performance of QX sustainable our long-term Our achieving profitability. forward in another goal

enhanced but virus managing we managing the strong are We impact.We the benefiting Brown higher and virus. operations, pricing. in from is virus-resistant through also potential strains procedures continue make steady also only increasingly not across higher implementation the which all are effectively tolerant progress minimizing cost for to now and of we the and environment, This operating future Rugose operate,

produce more year-to-date a million than great a over for a $XX start fresh That's and the to improvement result, positive $X adding far. improvement produce. a for fresh the adjusted QX to XXXX is chapter for As to a This brings so EBITDA, delivered positive year million. last total new

cash ultimately, generation, Steve? am confident will and next goal the turn now the and detailed more profitability flow is refresh over Our get to a there.I to our sustainable call review we financials. can I for Steve of

Steve Ruffini

Thanks, Mike.

Canadian in due as million, to dollar year. from As consolidated Notably, year net over of this is $X.X quarter period period QX improvement or the from improvement as the each a as well $X.X solid The FX $XX.X Mike costs.I $XX.X cannabis sales prior. posted delivered last by a our same in from at for Consolidated now each noted, same performances X% last The of loss million higher $X.XX stronger fresh lower business improvement a quarter corporate per also as sequential the to EBITDA has small a the lower a currency. will another as for quarter compared results. per We mainly or to loss U.S. was result on were quarter USD driven turn of million. our $X.X last year. largely our year XXXX the businesses. produce, slightly reporting XXXX earnings from million QX compared in QX decrease with net $X.X million cannabis sales for Consolidated narrowed of adjusted negative share U.S. was share a positive to but the QX share per of million well impact million EBITDA our the cannabis QX $X.XX $X.X negative another versus

these will to dollars I discuss usual, As rate absent the impact in of assist in year-over-year Canadian exchange comparisons fluctuations.

asset-light mentioned we sales period higher last through this both to QX through we last or models up $XX.X last That was for sales, in $X.X which in to comprise quarter another products increase inquiries inventories many cash Mike as $X.X or Export less the this down million -- the down same to what delivered parts, of Canadian year producers compared year-to-date sales cannabis $XX.X seeing and its QX were have year. sales and to about which quarter, moving as $XX.X QX of million XX% cash. in well $X $XX XXXX.International were compared Total year. and into sales of last million Pricing biomass earnings. for of exports mentioned last total QX compared XXX% in as an generate for branded cannabis from positive as from QX million, positive million, positive for slightly Breaking million As sold for $XXX,XXX year. are from improved. high-quality sales I $X.X Canadian due QX noted, availability believe nonbranded QX nonbranded with is were translated million down I in were cannabis to wholesale EBITDA this Canada slightly our channel up for component retail into year. Canadian operations flow have has been of consistent million,

is around cannabis While be and QX XX% XX% due of [ very selective margin figure as to to fluctuations. sales.Gross favorable acquisition gross on bulk cost with is increase QX margin the Last of excludes our results. our The slight as continue XXXX reported and in we margin compared XX% our year's a were strategic of gram per XXXX adjustments up, XX%. year's for year-on-year impact due rate impact for lower nonbranded to ] demand inventory QX primarily Canadian the last continuing exchange well a accounting

million improve QX since our for cannabis and year as expertise.Selling QX efficiencies last cannabis we continue general were Canadian our learn, QX As and we and from expenses -- innovate operational space, broaden we will $XX.X our into stated to both million, cannabis the have $XX.X this experience administrative in entry year. for down

QX sales, EBITDA with Canadian year As as QX as cannabis SG&A $X.X last percent compared unchanged adjusted for for was QX of $X.X at a million of was year. well XX%. million this

XX% million, was what EBITDA for to QX and up adjusted our a basis due the and year cannabis ongoing in to margin Balanced positive as from performance year.As QX which all slightly U.S. the from debt with Synergy+ tinctures gummies, have we million, improvement for of for EBITDA year-to-date net the U.S. last in the XX% last compared for from was in more cannabis cannabis the the generation in business also and were margin expenditures Health transition stabilized Cash XX% QX payments up reflected down double of U.S. financial U.S. year. last point income of results, from Botanicals, onset, last $XXX,XXX million, after essentially sales, success is million probably breakeven QX million $X.X noted, As Cannabis for $X.X this were year, customers EBITDA of generated Mike for QX last capital due service line. our up than cannabis primarily $X.X Adjusted Canadian at the XX%. $X.X year. at already $X.X expansion to entirely was positive a by year. million XXX our over to meaningfully gross was $XXX,XXX, significantly slight income was noted net $X

quarter of a nearly gross since million versus quarter is improvement seasonally a with gross pressures which retail are X.X dealing EBITDA every will pleased significantly and from losses $XXX,XXX. report line ] business gross note, however, for produce, last another $X.X customers.QX for some we input to stronger $XXX,XXX QX some in cash a QX to our X this the reporting calendar when produce supply after in suppliers to half from that positive XXXX. Produce key as we expect reported from later Fresh gross better in the quarter, not volume inflationary million but I Finally, slowly quarter margin of asked that QX during a positive end $XX,XXX well pricing EBITDA which generated earnings EBITDA produce. to we challenging had in margin positive projected quarter.Turning volumes are regain to improved to of margin the our U.S. of margin is fresh We year, improvement we I call positive [ we our year a of delivered reported QX loss QX receipt improved which a in gross percentage in note cannabis result from substantially a was in sales I fresh surely the Sales third-party income third with own This the delivered X% do as our our cash pounds been want partners of slightly the same partner of quarter costs, net $XX.X year-over-year August. I margin on increase that by in and last to we positive still which year. reported quarter quarter as XXXX was fresh a Fresh QX. now flow of greenhouses as earnings box produced.While $X.X own on revenues third-party in brings produce lot supply That's increase X.X%. which adjusted a operational to achieve a year. million, there's by in an of good pass $X.X strong to sales increase QX. XX% third also were margin our decrease loss net news report, of million in vendor million, up in from being flow VF loss our a of for $XX.X the big from offset benefited increased for selling and a am typically XX%, over production -- our positive and price a gross fresh, our year-to-date to our average driven last versus positive settlement losing

a The contribute flow additional to in balance from great division. production to due of our the the to the no one historically, increased on ability have at regulations; to year, calendar change strategic not to quarter our was is, expected since X facility, grow an the QX tomato regulations.This space, other This Canada Delta is revenues at opportunity our ahead within this now to to allow XXXX of inception cash expected X the of demand sales which other is the Health to VF and currently Fresh cannabis were the regulations in cost impact licensed for of to sheet. profitable for with the look cannabis to facility.Turning to million, Delta grown idle licensed profitability number third utilize us not deploy decreasing; crops the yields, cash allowed have our year. reasons our has cannabis area to generate hence, incremental cannabis improvements of in X, and $XX.X in X, pivot in change X, the a end half we made our year. our used for we cannabis tomatoes, be $XX.X us the decision what continuing will in end grow and to the at the profitable. fact, greenhouses meet of swing key factors: million As of facilities, the least next crops grow permits a now Cash to being of operations and in now up been

QX at million $XX quarter in in end million at was to end capital million end $XX debt capital, of from third the cash significant shortly working and million at QX. last Total unchanged at improvements capital down working the the $XX.X of are relatively year. which million, of the $XX.X from QX end our $XX.X the at working of was in While compared

are debt to principal call payments per to now I'll service the back turn quarter.And million quarterly $X.X Mike. Our close

Mike DeGiglio

Thanks, Steve.

have For cultivation we with our Village respect the XX-plus and which -- build Farms to years, as core built a deep for from business.

or us brands. build co-head to growers refer More to cost we describe as would value where recently, farmers. no as Some low

areas everyone enabling It This quarter, simplistic viewpoint. deep and XXXX roles providing flow. out that our sustainable, now best to rate how leadership from consumer else.Getting indeed, is in driving critical funding challenges profitable goods resulting we proving shows share bandwidth market are and separate cultivation and functions, deep the critical companies and in cultivation year-to-date competitive experience which cash the as us are fact, with advantage other -- innovate is in

same a call are for Canadian of farmers pillars that Importantly, will success foundation cannabis model you. growth excited for or our be It's open as questions We for continuing the point. operator, it look ] we over [ about.So opportunity. to these turn Thank -- are I'll we the this around that the very any markets as you at expand new world.

Operator

Alliance come from [Operator Instructions] Aaron Grey Global with line the first Our of will question Partners.

Aaron Grey

quarter products that you you just the kind off left on to on and here. capability had kind of of terms Mike, where in jump that out Congrats going of proving kind want CPG I of the beyond off mentioned.

with So with if you the to pressure. today, viewing how compete necessary we of value some can of launch Valley, pricing to brand understand you're architecture the particularly brand speak was which Fraser

imply Some does Pure mix the third-party of from Sunfarms of Frazer. the to shift some

color see here? your want the evolving well to mix get of you we seeing as as industry within just the in portfolio And mainstream own continue to evolve terms premium then value category? within are how the So some

Mike DeGiglio

-- our we focus consumer on someone it's launch testing. we Yes, is Sure. really insights mean I brands. before

we Fraser now the but sort the Valley. where with a West And Fraser exceptional. is segment, quality the there in on That of resonates at clearly, had especially Coast #X Fraser the on Ontario, Valley So Valley. launch of least was with Coast, just or East then

a do it. ebb Pure current with but well.And which put economic ago, that and than very the our and X% and then Sunfarms expected economy category, situation, But lot in it's quality resonated or pressure be Soar it's never become a and it's the player third, well, on an So for we we But think premium brand. category to the pricing a flow. XX% premium strong that to some is equally, doing launched has with the us. year And the I more

to innovate. continue we So

of The resonating other has Rose side drive is need LifeScience keep brands a in it going are a well, forward. with Quebec, our in that to of And newness of now not now mind we're in a but brands. really other within takes it innovation. and provinces very that in of to those And time And just continue where newness effort, We launches. money. a of we lot to right going energy, know be lot XXXX number lot

to have probably working You continue some about color. forward. trial. we're talk going on that And you actually But I to very in hope unique you'll gives things, which quarter next some the

Aaron Grey

That's sequentially. No, helpful. on then a We for sales. uptick it And very question nice does. second me saw nonbranded

Is basis, was a alluded recurring driven sale? you in the by on business of to you there new one-off generate that kind So prepared from more line a remarks. expect that a of there to

some So by pressure of of driven just gross other the that that the margin, say part in that nonbranded to saw mix. sequentially. that some fair increase the of some we And also in on of Was mix. on then

So ]? about on just going think impact basis? we of had sales And recurring -- margin then there any forward terms we new of that [ business do a generating gross in how type how

Mike DeGiglio

that of at BXB margin, strategic up. we're distributors proved with the I we've very gross We that year margin decision can company, very to open and and branded extremely this think sort and wanted our the prove be provinces of our We business, Actually, a No. the well internally out. to beginning satisfied. we consumers to company on gross strong to the a made as satisfied as

We continue out. prove to it

branding there was a So focus very on being that big just -- side. on the myopic

let's flow on. focused were we our business. generation. cash orders up strategically, early And we marching decided the B&B However, Those on are open

We lot The flower margin change.And we're revenue, dynamics was to seemed we on. see capacity. up change companies And well. industry. And for course, good. slowly, margins profitability, There number are we of model light be greater we sales, in way greater available. that BXB asset can international take That's driving of the a were greater not going to watching as reason to of a the business if that's a have that the a in drive model. And then their

and that parallels very just this nicely, continue forward moving So going we're BXB. to

Operator

with line question next Eric come Lauriers from Our will Craig-Hallum. of the Des

Eric Des Lauriers

was produce results hoping could Congratulations into of some I this on bit strong here. more quarter. you the in in drill a changes

moving So obviously, some parts here.

I'm investments here spoken improvements also drivers if the us about you've I like. increase perhaps help more some One in sounds the just you've know could produce. it is understand the bit kind of recently, wondering deeply kind you of operational in volumes, into made. drill just that profitability for or a of of AI

of perhaps that to If you on cost made should of about have forward? to kind in operational sold some how going you we difference the an could look and just of Where that us the of in think see kind operating improvements forward? give going improvement update segment overall that sort expenses versus of goods

Mike DeGiglio

year year years. last produce worst look, think, in we I the XX had Well, was in

and you corrugated it were Everything holistic. X,XXX-plus [ was and post-COVID perfect virus, skyrocketed number tolerance, now in went the the difficult crazy. factors. are at of foreign control, X% driven of think the of continues worst by XX%, bacteria, Fertilizer all program, happening was this important. diesel varieties. I've ] board, tolerant, our battling worker labor across see board sales. it, tolerate -- cost a and of really trucks all are our they And viruses, were seeing means we're storm, partner were a insect costs first was may we agriculture It costs that one that's here was to varieties up very on year. every patterns very the day up based costs even with so labor year, and sort but a totally in XX%, that the across is we look items while drive year.So for more virus. the we When out shipping resistant are which of that fuel, started dealing of astronomical. get was seen, but but inflationary putting pressures a to That's the more a really on, So always they we're that ever And in more it can was It starting our the

taken a resistance into it's after growing parent after parent XX varieties, in to until finally of So parent long the once it's still time. new spliced Even ready turns gene there. the be takes it was

it. about So we had to be patient

is So of that growers that's systems very we thousands our concurrent cost were invested big of day, technology probably to are data That second new the this $X like AI alone down. a help. copilot our biggest talked close the the about monitoring drive putting that year every strong points day to in as We've labor year. impact.Simultaneously, a with every of million also

speak is which forward a going installed, As of XXXX. now, equipment right will in we benefit have that being most

into business. to profitability X of You to system.That from affected less yields we went as and our be is switched them, a as the big due direct a directly both up, the impact and that's X virus, being are virus said saw working AI well starting part X growers. of out berries to our -- working with that's of our And by third-party our lost the with

last June. week. rebuilding going We're in there we're our forward. just building relationships We're I that. was in very I So Mexico was bullish.

not It's Pricing been And So it. driving cumulative. solid. look I gross our more drive continue that's going a all at has think thing margin higher. it's one just to to we'll

resonating not prices prices so to cutting had of lot a to against your seems competition, And with higher think but survive. can it's industry the Finally, realize be to it trying our I drive competitors. the just industry

million The there do, I bullish.That being strong X very in it year turnover is and we're we're in to $XX overall, in said, direction. easy not a but a think is especially agriculture. quarter-to-quarter, headed is So commodity fluctuations

the So you color you I gives hope that Eric. need,

Eric Des Lauriers

was just and If can that No, a Yes. double-click to great very on helpful hear. I of that more. bit kind

from you charge drive So down costs control you out new need XXXX in dealing the one of you pricing. of to of of in, with before you areas look here. are obviously, sort is in kind once Do and layered of going at now a is feel technology other reach profitable commodities Or comfortable granted that you of kind sort forward produce woods no least that that may we feel kind that here what kind sustainably there business? you're have this that of perhaps -- fully what's in are your of you that to

Mike DeGiglio

goes do. years. -- our thing only would where be over rates I The skyrocketed the inflation the interest Yes, uncertainty only on our have and loans even

-- directly it's produce pay to that been for effect. our And been negative not our matter. as, does there's though efficiencies excellence, on rate a even had that I think is it tied we not area -- operational and So one business interest example, hasn't

that. really us So on a I pivotal solid think get going is very strong sustainable profitability pretty XXXX year I to feel to forward. for

Eric Des Lauriers

That's question potential on of the great the Texas. just an And just sale for last hear. greenhouse update in to me, for looking

Mike DeGiglio

just we our But I in position the with don't but have can as see, way anything that sitting to I patient. other where reported industry, is, think economy working just it. report. and We're We're is capital. but the have working to not happened the Steve our our on have cash laurels, things it you be some

it So to in be we'll and a [ will hopefully that nice have ] eventually XXXX. go will that state reinvest

Operator

Excelsior Regan line comes the with Equities. next Our of Mike question from

Michael Regan

Congrats a good on quarter. really

terms some of of your cannabis are it's see out capacity is now. impact we've the reduce the interesting down that start And shut potentially Canada. capacity some swing in be much any plants seen getting lot to generate Or add capacity you improvements a need in can of -- guess, In that reduction to swing -- on more tomatoes will cash of are sort that starting I you're to you for to yields competitors actually of don't that it that -- you your to capacity on and that so some that of capacity? you to allowing to just starting capacity it.

Mike DeGiglio

within -- never is the maybe we're there's seen of so reckoning marketplace. that capacity seeing years Yes. XXXX We're finally domino sometimes we've -- a and things for then excess many seeing Canadian the that in effect. change, year And

-- either cannabis that publicly not Canadian focus other on seeing maybe a companies well, in have markets. overseas So participate reported cannabis retail or of we going are lot market, the they're to

that light so a Some they that's model on. and asset have be will fine. indicated And

are driver market expansion if because we looking We own and say, revenues changes increased they we're seeing have do our the flow positive at with nothing cash or to some but and bad mutual happening. profitable to a to is them while benefit good our customer, potential work could going we're share, we so.So are

being cash was I without very just for to companies it's profitable, think durable. there out not what generate trying

change. to So it's got

participate definitely we're that. going So to in

ago growing yields mind, been in capacity it. yields that down. cost Steve our we reported, could have do because drive you get and excess We better which it, improvement you continuous said increasing. years at X up, drives a your that get keep you is have your as Hopefully, better process, Now at

in we're a position. So good

We position international. focused and profitability can in serious sort have very market put now we we're reached footage square now we've use.We're Canada, to about very now that going excess a share -- of

went approach. think international I a before companies had maybe some Canada We right. different was

international. going Let's go -- get and and then Canada right

we're looking So increased in the in have to to capacity really XXXX, so. penetration do market we the and international forward

think our needs, well could and XXXX. we definitely could BXB, and international I So we own XXXX into capacity be service drive as going could a we

Michael Regan

changed license follow-up, there license read changes then as there, on any of a volume [ pricing And structure Ontario producers Got Ontario this benefit the it's those about the and still ] for the has and commentary it. at any changes quick producers is how pricing retailers but and the we've in changes retailers. the seeing early, And bit or it's a you're -- point? how only volume

Steve Ruffini

Very is good observation. Mike, this Steve.

at of we changed whole QX so month. all. some the Does pricing out, structure of transparency and the Ontario impact -- it's point markup no a you so the been at provinces, As great with in have date, really on September, the to end other

the have from We change. benefited

retail. as We pricing company our same keep have a at the to decided

way we by decrease the OCF. works, of it will XXX% -- margin we the realize So effectively,

or our follow will are ourselves. we to will to doing seen most in a X% increase to whether the not it chase X% people us, -- or keep decided we'll we've remains see we be doing, So but to down margins prices margin LPs in OCS. think What other

Operator

next from ATB the come Markets. line of will Our Eric with Instructions] Capital question [Operator Livshits

Eric Livshits

I'm given somewhat So just in just cash of be expect of this cash generation ahead? point you should do flows the this bumpy cash kind the quarter, positive a flow flow for as see turning in quarters we to more wondering, generation the Or company?

Mike DeGiglio

focus it cash profitable to market could chase in they That's market what positive and see market If of that's number share. Those share lumpy somewhat on Well, I'm deem share. think, generation. to may I I is done because just positive our unprofitable the days, just but chasing companies think over, quarters not we ahead, it's side. it. going are don't our the we be slips, a

So with going think our to share, our stay We're positive. cost very I parochial market we're focus driving on profitable down.

it Now but quarter, an be But on overall, to not positive I basis, we're steady say single the probably be think going may be. we to won't every annual side. can

Operator

Ann back turn to question. call for Thank the like you. to another I'd now

Ann Gillin Lefever

Liz. Thanks,

question in whether the getting. sales LPs shareholder buyers. distribution and the a and wanted ordering of clearly buyers. via great down we provincial to question to we Canadian What provincial model highlight due large the conclude, is e-mail we It's policies we that Before that a of missing to multipart from purchasing a came on engaged the practices other to boils question out related appreciated are

Mike DeGiglio

is to the question short And that, answer no. the

excellent working to to trying provinces met are all forecasting with supply, the We with all accurate and their their them demand We more and much know with we're is have market to demands. product working maximize hard closely boards we to and territories a relationships provide ensure meet supply. penetration

industry. it's it's as think synergistic in So still a an And I opportunity for us.

together right, of together of we're So working it always but us, and better benefit to the to getting the consumer. getting we're the ultimately not benefit but

hope thank look I all. on fourth joining thanks, call to surprise We forward that for you, and Liz, you year-end So quarter. our everyone, for forward you Thank going next today. the us.So speaking and us with

Operator

conference concludes for call. Thank participating. This today's you

may disconnect. You now

Village Farms International (VFF) 8 Nov 232023 Q3 Earnings call transcript