VFF - Earnings call transcript Q4 2023 | Village Farms International, Inc.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, ladies and gentlemen. Welcome to Village Farms International's Fourth Quarter and Year End 2023 Financial Results Conference Call.This morning, Village Farms issued a news release reporting its financial results for the fourth quarter and year ended December 31, 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. Details of how to access the replays are available in today's news release.Before we begin, let me remind you that forward-looking statements may be made today during or after the formal part of this conference call. applied our these control. were which many assumptions beyond are material in statements, providing of Certain to those These of statements. that results risks are and materially statements subject uncertainties could to cause in or implied expressed a number differ forward-looking from actual summary regulators, risks uncertainties available including year XX-K, for in underlying its is with the ended assumptions, securities SEDAR+. and the XXXX, EDGAR be company's Form on various filings these which December SEC of contained A and the and will XX, Canadian MD&A forward-looking are Chief except to like to such securities Officer Executive undertake These statements today's any made date, Farms DeGiglio, now obligation as law, turn of as Village and the no publicly of revise would applicable update call or required over International. by statements.I Michael we to Mr. ahead, go Please DeGiglio.

Mike DeGiglio

Shannon. Smith, President, President thank morning, are our going Ruffini, for our today. Gillin X cover us Corporate Financial of forward. I'm and Affairs; Executive Steve topics joining Vice Lefever, With Officer; Corporate Patti Ann Controller.Today me Chief going to Vice Good Thanks, you and

quarter to First, fourth on the full year. few minutes going spend a I'm and

recent challenged and have all owned from and contributions they in more goal to I their each in business. the Second, in landscape.First, consolidated positive discuss some bar This on our Canadian our positive even employees, by contribution in model. the them adjusted key third, which year, to we will with was I'd delivered raise was XXXX, XXXX. to with EBITDA a comment thank improvements respect And the cannabis like for I business strongly developments positive them

quick Some highlights.

That's EBITDA $XX on EBITDA months. with in an million Produce improvement We ongoing have our Fresh adjusted now closer restored to XX in breakeven a basis. business

stable succeeded major in strong in focused not player has industry positive EBITDA only opportunities flow.Our on in profitability may We U.S. team The and bleeding platform with positive to establishing continues as cannabis hemp U.S. the to deliver are the cannabis be market. a and cash the adjusted cash leverage steady CBD up. U.S. We performance cash flow. business and now long-term right now open

sales assets QX, best iteration our Our portion replicate #X in we ever next on growth retail national High-THC expertise and all total a steadily cannabis quarter gap of the the our share our delivered transformational cannabis to position. U.S. across success means are accelerated Canadian in position remain business, our in sales. in our regulations.In of opportunity We branded Canadian reclaimed net again. the sales the This And a #X market we closing categories. and Texas-based

now Importantly, brand form extensions price beyond Pure Valley, are market pursuing Sunfarms of gains different share Canada, and Pure Soar, Super are adding and factors.Outside we across like opportunities in Fraser Toast Lane segments in are being end new XXXX. selling the across markets. the markets, country's international we best of cannabis strains Canada medical emerging sold at including of the which X U.K., X added

this year, place to about our We in the production are markets German in this while launch of we market in recent out Netherlands. in started sales products additional excited year.Earlier first markets, current and a accelerate to strategy international have expecting the developments export European build the facility

profitability cash early in proud with first in have licensed improvements X, direct year major expected operational this be XXXX.Moving direct is impact participant go-forward that limited country, are later topic American have Europe. the a begin and our the cannabis large North we to flow. to We on this that recreational to first targeted -- market sales had only in Production

market light a at tomato the of environment we We growth and projections behind capital a challenging virus, assumptions against largely of trends.To on tough what every took the look hard our one challenged and During in most summarize, we gaining record for goals, by a Village what and in flow driven When years prioritized particular Farms XXXX, within destructive changing macro industry cash cannabis market we 'XX to not and ignore control, we flow share. could challenging we each expected levels could capital generating we cash on in profitable generation the industries, in working business. conditions our the started inventory business. of be Canadian drilling down

improved turn cannabis conditions model.In scale supply have team inventory overall inventory Now, And and asset freshness. of the Canadian many large pricing move and and have assessed cash we forward. quality capitalize conversion, a move made of inventory, competitors so, nonbrand higher brilliant doing cultivation to a think facilities our model monetize biomass operation improve our on to as spec market to to the shutter going a lighter higher moved we operating tightening

opportunities hemp, improvement CBD cannabis our production to The is cannabis-derived initiative U.S. products completion. our better further which and Canada that our gummies otherwise these already also would strategic cultivation in and cannabis our ready a describe is be Steve do standards. our have we yields.And positions standards further a a across Fresh, has on temporarily supported adhere supply mentality, not FDA tightening, U.S. preferred our margin appear sales transition products, on will as executing a XXX%. QX results whenever tightening. adjusted visibility into been we positive industry improvement competitors shortly.As This Canadian benefit to CBD, improvements conditions consensus. In team expect in-house, major market factor. this to profitable to gummy model. including impacting it current biomass stringent GMP turning And to similar cultivation line Most EBITDA, us respect inventories with a of our where adhere gross for with on which nearing will profitability is while pivot of dynamics business customer we in to is which in all go We have cost improve to offline leadership form continued operation our the see be is to the on market embarked plan the expect business, visits for to and focus by

developments be to as conditions XXX% our to turn of second is we gummy forfeit recent first operations. XXXX.Finally, we did the in-house cannabis the have one. in which products in want to remind out Canadian being expect ensure acquisition, I quarter, that industry. of achieved will to without a This year stock to producing We with I we sales just cannabis want good our market do not everyone in been the fifth have by X due

time, years and are excise We there of start leveraging there reform, potential agriculture and company.As ongoing. the into have leading controlled executed for look first our tax favorable optimistic our X I'll about I discussions currently industry, profitable original with XX on the the several. a in leadership ahead I'm changes for where environmental cannabis thesis, are

was major together a peers has The many work to on supply. several forecasting producers tax its conversations its including those emerging ready authorities First, a playing all country the which highlight factors stands boards will Canada the which worked an ballooning with profitability -- on industry also rather, Canada-leading to operator this tax leader and who of models, a of time models. and levels provincial industry ongoing market supporting was are much are and cost the pays developed the April to I models.This on for our to founding industry ultimately municipalities, collection shift long-term scale level retail alongside cannabis due recent was federal field better as we want the like and high us biomass successful efforts employment, be as profitable measure with stand as second seeing improvement we're balance that strong review This benefit top a to first cost, and all operating first asset-light the to thesis, solution, quality at invests tabled future.The is where in we we are that the tirelessly to consistency a of We unique budget sustainable for thriving with industry, which as positively these strengthen to pricing ], the that in a share. producers is business low results is the Canadian this income implementing strong reports help We low recommend for in are local business. pricing view an continue difficult. for factors. global as to onerous effort, included think XXth. payments. are which widen The invest there matures, stabilization. developments true industry Canadian to in believe and have tax decision business There come is already in as leading incredibly We includes cultivation working know excise it sheet.Second, a of fallout, a more our validation Village taxes, aggressive cannabis, sustainable at of gap capital conversions work recommendations the for aligned now a the excise cannabis which to We industry control. Farms to and equitable our continue groups the to fully delinquent leading legalize cultivator of [ CX most development levels Canadian importantly LPs effort recently positive industry on focus quality, on support to in some opportunity as ISED demand each licensed and a

leading position meet share.Few Our of this lead you. is Canada the experience cannabis Steve, to going market leg able next over incredibly have turn in full for take will extend profitable as in challenge. and the our Canadian to this industry, our forward.And X decades I'll now, we it difficult to advantage been I see of evident growth

Steve Ruffini

write-downs negative numbers impacted and $XX $XX.X Mike. million back share, loss million. on longer XXXX noncash based here for the improvement of and impairments write-downs add adjusted Both QX, to were retail feedback this to positive branded to $XX.X net flow. adjusted Thanks, another EBITDA sales million, division In adjusted XX% from to respect XXXX delivered cash respectively.Our our consolidated from quarter dollars. figures Canadian $XX.X and currency million positive consolidated were $XX.X the Mike last to in any million U.S. million. cannabis per Net X% note reported were Of million our EBITDA the in Starting adjusted $XX.X year-over-year a year. QX sales inventory down to or will on I in QX of entirety Previously our change. the of been we $XX.X this divisions narrowed improved goodwill adjusted I QX, reflect EBITDA, the up which There and or no year results, record for reference million negative cannabis Net a quarter X% to fourth record. calculation. XXXX, and mentioned, total, to new inventory will of up with With by year-over-year have during of XXXX.Drilling adjusted guidance as we that sales on increased $XXX,XXX. XXXX SEC EBITDA were local EBITDA for Canadian sales full and $XX no $X.XX quarterly

We our and up large have of sales to They're XXXX sequentially.Some XX% strong in X-fold additional orders color restocking saw provincial with growth on continued at customers. some sizable up branded growth. this from some the $X.X QX continued we over see into QX sales million. year from carry early Non-branded last

branded us areas. a the our During strategically with in be is It firmed up, gave biomass of was that wholesale not inventory. to capitalize of our a growth market some nonbranded time on or half moving demand window second the to designated XXXX, for other good which

For in more analyst sales, of the on for consensus sold would volume Canadian line context, prior XXXX. quarter. the the the average than for fourth quarters gross Also during more quarter, biomass context, cannabis these of X our margin with X.Xx have been roughly nonbranded without estimates we

balance in quarter, million you to in with Sales for outside are be our So if last stand QX growth compared our be flow. XX% lumpy up to these we sheet build sales correct.International QX profit our as continue $X.X cleaned continue commercial year. were for of business thinking would selling in you this million that sales to operating as this of total to area of sales contribute cash we're by into and markets. We medical startup relationships goal what of Canada mode essentially are markets.Turning we $X.X

was XX% weight of due margin quarter. that sold the during to biomass non-strategic we the margin lower heavier gross cannabis Canadian target QX our below of Our

target QX, our For sales of to was of margins gross XX% XX% context, XX%. below in our sold volume

SG&A percentage XXXX, are drive range.We market branded our the to range with gross advantage within continuing quarter monetize continue conditions expect margin point $X XX%.Another QX in $X.X of of our mindset. Our in sales. generation percent nonbranded sales some With of take of margin highlight but our to basis gross part million early to cost be a a of as target XX% additional deliver of management biomass, the effect cash continuous was gross year-over-year, spec is the target we the to XXX low down continued traditional margin which to of on favorable will million, expenses improvement do

While percentage Canadian couple our $X.X XXXX's the XXXX with basis improvement adjusted did we in our cost SG&A our sales QX the nonbranded from QX expectation of than SG&A EBITDA full of XXXX.Our to spec adjusted hundred of XX.X of an are of our cannabis that million EBITDA. expecting points QX a be a less enhance ratio management sales figure, quarter sales year our of as ratio continuation restated for in is

We opportunities to $X.X million.Mike out on another in these isn't cash leadership reduce sales focus which generation, noted flow position. of discussed. the our adjusted we gross adjusted cannabis the Canadian I with close As EBITDA sales EBITDA by impacted our by believe estimate division was area margin, a

to For strong expenditures Canadian our to of cash of U.S. turn million year of cannabis from the XX%. $X.X generation EBITDA now positive with EBITDA were full to cash the cannabis year a or which $X.X charge, our QX at $X.X is $XX of million of but for generated Net with cannabis $XX.X includes small $XX those principal which gross year-over-year. $XXX,XXX. of full will million sales million, and improved million, operations repayments and close loss, million capital Adjusted $X.X roughly impairment flow million.I debt line in business. margin Canadian last year net a XXXX, doubled

on primarily consecutive the the impairment While to segment flow driving both margin so, ongoing we clarity commercialization it driven Sales charge, Gross as positive QX the and territory fourth continue negative the in await winter was quarter forecast our a below in for because the acknowledge was full adjusted is while $XXX,XXX, FDA to $XXX,XXX seasonal quarter QX, second the which which QX pricing, was fourth slightly at for in the the we $XX.X another March. Even rules cash of of into EBITDA normally this kicks delayed continue especially of division. into CBD. with in accounting we are we positive on December, firming lack year-on-year this smaller pricing growth substantive to by continued quarter the increased year.Moving Produce. And for January, up Fresh early for was expecting generate tomatoes, to which in quarter for million. improvement improvement

resulted our of of XX% quarter $X for use or capital over our net packhouse equipment a negative for which flow enhanced primarily to spend total cash primarily of %X.X lower Produce noted CapEx of result for our million. year $XX.X Fresh QX $XX was total year $X That in higher accounts Leli the roughly We've the $XX.X For the receivable period was months. costs the territory. positive increase improvement in $X million.Switching million CapEx in expenditures the our year, million due of the in cash quarter.Our Fresh operations loss for also Consolidated improvement XXXX a of as for quarter Texas sales, an to Produce flow. delivered from by project with labor an EBITDA roughly the was to to a million greenhouses, million. for the in This capital working expected of for XXXX $X.X operational and, which million negative million in the XX net Netherlands. over invested improved ended remarkable payback our will brings adjusted Holland earlier,

in principal in payments, decrease cash resulting consolidated paid Finally, net a $X.X quarter in million $X.X the for our to XXXX. recurring ahead of million.Looking quarterly we

which produce first our start both inventory for The of to plants are of as quarter facilities, X tomato Produce X i.e. is Delta form capital we seasonally Delta toughest in Canadian gear about quarter working our in build and harvest. up the assets, the

So XXXX-XXXX start well, cash in crops well will are crop the Texas late flow performing facilities these season. April.Our into from

as of operations having sales strong of result quarter and sales. a fourth Canadian our generation are XXXX early cash a strong Our quarter

will improved much is May which Fresh our Produce capital project, debt QX finance both from We $XX XXX% capital February of and at of million $XX in million flow. Our million be this $XX Leli in million, due QX XXXX. $XX.X starting operating and XXXX, ended to we decreased year existing the slightly of primary which cash term XXXX.Total for composed working are which from and of cash our with cash the spend end XXXX matures cannabis in to million, $XX.X end debt, forecasting debt, of was

net total are $XX back that I'll very comfortable call a Mike. million, is turn debt level now, the we Our to with.And

Mike DeGiglio

Thanks, Steve.

why largest thesis few by founder, Q&A remain years on company are I as Farms to so cannabis would shareholder. in a Village profitable we original our So, executing optimistic we XX-plus agriculture that reiterate comments replicating before the want best-in-class a and our build on we expertise. CEO, One,

to tremendous We ranked cannabis not with the and done. are a expanding the market. At have overall started #X XXXX points. basis the growing position of of are our the we between #X share than gap shrunk our And momentum.Second, less end XXX LPS Canadian of amount we February,

to excise tax XX% Our market the market.And Canadian we the profitable within pricing, Farms underway growth. next remains share. our target improving Village currently stabilizing positioned still benefit finally, of supply growth level dynamics, driving enforcement Three, is model are from uniquely and

team, go the Germany Netherlands. licensed point. opportunities we'll country senior over the crush told as are Shannon, incredible management vantage it.With in medical that, pursuing emerging to turn of an at Q&A. We And stand it as such We limited markets my and I

Operator

Capital with the first from comes Eric Group. Our of [Operator Des line question Craig-Hallum Instructions] Lauriers

Eric Des Lauriers

cannabis the me Just about the business gross the about there. forward? may vertical with just that is either margins U.S. side think model that or of gummy on you First going one just talk kind not production. or EBITDA Can may to integration impact the of how change in how from

Mike DeGiglio

essentially to our it us gross sustain allow margins. Eric, will existing

gummies tinctures, consumers outsourcing which from able than switch by gross by have margin had gummies. We gross it, to seen our own been insourcing higher a our But improve not we've margin traditionally. on gummies our

continue So, And to gross machine our we'll have we we high capacity additional on as margin. believe that XX% well. sustain

others assist at looking well. we're to opportunities So as

Eric Des Lauriers

And then, of very Great. margins just terms the these helpful. Okay. other all together cannabis in of pieces on to That's put my trying kind question, Canadian side.

elevated guess, to longer some, to these reduced you we some inventory or tightening which time, potentially of improving this it's certainly respect great sales, there's to playing anything sort to you although back no just in balance wondering of adding So, new, EBITDA your we've some thinking quality the expect margins be At had level wholesale I back, that the Is to have of there hear mentioned, cetera.So opportunistic that write-downs wholesale margins, sales, mentioned, if that to do between you sense with I EBITDA QX, consider margins environment? sort sheet, that of improving correctly, historical some normalized of supply levels, make ongoing you're XX%. XX% of biomass we same kind strengths et of gross should come here. still and sort heard as about how inventory,

Steve Ruffini

But inventory Steve. any existing risk We're spoken not our inventory, of write-downs. for. things so inventory no is with is any Most It anticipating is this of our as happen. agriculture, today, write-downs. Eric, of

we even we we demand move seen to our gross buds. in that the comfortable, have is short. inventory increased of that that the in and it's lower range XX% range. the spec, that for to, movements to continue increased indication able the opportunistic we're did very with QX, because we'll which these nonbrand spec an in generally And think the market potency, be given margins to XX% demand maintain smaller pricing, is increased But and We of out some

Eric Des Lauriers

hear. great All to That's right.

Operator

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

Michael Regan

valorem on process can guess, a the exactly give tabled to civics on sort these We us have for Standing how unanimously. the of XX-K and when added I So, changes word XX, Canadian the potentially recommended change? a governmental potential would the tax could maybe April come. the on Finance XX% going It's work think Committee ad near change you lesson be for I the

process So, that and on is understand looking you for what be can help should we us what change? the

Mike DeGiglio

Yes.

necessarily we're idea the we any Mike, what think, I not timing Canadian have -- is. government's don't

reflected So and that there's around going way get no there to it. conversation is we just But there recommendations. are on,

beer it paid Now, us, profound that the trend year, may and year. is government not. this But year in profound. difference next wine happen it or tax a even it, happen reason last and to could going fall combined. the there, for Cannabis It mention it's we could than the more all

will at and impact huge. So, and the some to it us for industry point, is happen, the

So, brought say don't on that's we it but will have any color necessarily We any happen it up, why can't that. we time soon.

Michael Regan

for guess, I basically terms will Parliament, they'll recommendations. law rejecting whether decide or in the work? tabled accepting pass of I the if Is in they the But process, -- would that Parliament mean, then how what Okay. be basically, it it the

Steve Ruffini

on work. -- the our EBITDA. is Yes. impact will mentioned, Steve. analysis it cash and substantive basically on This your and as the flow we do appreciate Mike And work That's how

good work You've on that. done

Michael Regan

on I of for the just I numbers, $XX XXXX of a in actual dollars. terms it in you sold guess in of $XX and that million net I terms of $XXX of guess, excise mean, impact, basically U.S. cannabis taxes branded revenue how million paid using million --

net Is ad that accounting So, the I'm revenue. about thinking would basically the correctly? be if delta how million $XX up million, XX% would that go then to $XX So, would push it the tax valorem, right? became and $XXX,XXX, XX% the the of a

Steve Ruffini

the obviously, tax on paying, We're excise branded sales.

calculation. from the essentially and But looking with done report, at we're nonbranded the exclude comfortable sales to you've have You your that provided. your numbers calculation, you

Operator

of line Alliance Aaron Partners. Grey comes Our the next question with from Global

Aaron Grey

one for me. First

shakeout maybe of an see in owed you the patterns could of How of the that and in in of do the of market? Just in purchasing some good provincial they that from taxes away LPs standing the wages they to that are as that have they you started on of garnishing impact some with buy of of owe look terms some have payment. they of some already some from know CRA And that may terms been the enforcement of accelerated asked amount shift of to to have those increase to they they terms the think boards big the in and garnish taxes it CRA? see

Mike DeGiglio

I part think, Most I of shy question, we to if will collect going from on specific the second they're away they willing for the think, those that taxes. sure the boards, indicated don't know are providers. and have

So we a number collection, strong towards approaching pressure those companies It's that put big number. that's is and The enforcement million, $XXX ballooning. a are on will delinquent. that's move and think which

it Now, into force companies bankruptcy. may

we've unfair going pay away in seen through license if there's think States, taxes Canada think boards a I some.Canada, the Health because your discussions where but may unlike you to on an bankruptcy, won't happens, it's that not United or taxes. way Canada scrub the really your orders we your take issue can

So recent last couple on color move it months, there's this think we'll tax And aggressive X a things next was the the in sort of motion. get by very over better I collectors weeks. X to as of the lot in

on So more that. to come

Aaron Grey

with capitalize you can coming awareness then, the store Can medical being where the to seems meaningfully given specific brand, market. opportunity, Okay. see grow an your brand just to one initiative opportunities, buy the of in on it Great. big and given the the to just German you particularly increase international medical a prescribed reform, prescription terms a expected doctor And plans versus opportunity the dynamics of just offers more potentially and just growth it go of broad to patient where then it. a the

So you market ]? make do potentially opportunity there to backdrop, to capitalize [ is potentially plan of investments given really that that the just how on that the ahead

Mike DeGiglio

Yes.

the many to to distributors even going either. legalizing with go, work months. countries, we're looking that XX think so array are to XX distributors talking in We're in over I countries at of next

each that us there in the That's having EU, strain. the worked partners Australia.And would we'll cover we and you So, look did number that is well way a our country, say, EU. in be partners as maybe at countries, of multiple for different in know, the in would issue

So, strains to taking we we're to sort invest measure our global forward, a going platform how in going more more that. of

medicinal that is key international this export now a us our year think being next. a for by priority So for And footprint that, separate entity growth very have I and for headed with coupled We qualified. formed somebody is help and i.e. I think deep where the their in Netherlands next of for recreational, go in-country cultivate will to springboard or have us where scheduling Germany like class may the generation third the on you and legalization, Netherlands.

the we flow market we're continue #X and happening. very talked And to to strong nothing and in that in it.We a very the about can and years for alive be share wait. U.S. market just positive, we So, a make us. that of Canada, solid But great not focused at in we're frustrated the board. very We but optionality of moving here meantime, going parts, be cash course, EBITDA on we've positive lot for ground to till wait opportunity wanted internationally. And very think sit across Canada, there's is

us international forward we we drive time we for is like aggressively feel stand. to And Canada. opportunities, pursue where to So right in we the continue while now

on that more to So, come.

Aaron Grey

it. forward to Look Great. Okay.

Operator

Zuanic Zuanic line & from comes with Associates. question of next Pablo Our the

Pablo Zuanic

that, target across a you that. terms of do And maybe X-part XX% you or share that clarify in question. as can mentioned, the all for is Mike, flower you formats? If

big there? can the of plans there, performing in And you can more formats lines, gap the And large just share provinces how leader, industry ] of polling disclose, momentum. terms those have market As for more room size understand with you what along pre-rolls, you've there's ones, the you are better still very color and been of where drivers to [ in infused narrowing growth, and share terms what opportunity? you talk about may

Mike DeGiglio

XX% course, flower all something on get at some still we was #X. but shrinking flower The we form. formats. it. out remain overall, pre-rolls we we're that's We some been in And and can of of Yes. just point there's steadfast believe And there, we and across put as almost another consider flower,

a really will I of vapes. think anything be. pre-rolls, on So, in flower we Innovation our probably we focus strides. right continue go the continue to part where market to is now be make Freshness, pre-rolls, on horizon.And not That's see the infused is to forward. beverage, largest the think, that. doing nor do big We're going at be of will the that top This year difficult. we us to it's for

I it's across said cost the and my difficult have invest positive positive meeting generate to board right in to in you to understanding needs, EBITDA, we need cash of consumer launching said, what where what flow As for in looking is plan order production for, the remarks, now right and the to being always know we're that. in consumer development. able 'XX heavily product We've execute

on stand. actually that for forward. back see and us going good things turned we we've where that's coming we Delta there So X, ahead With

Pablo Zuanic

lie, give penetration HiFyre level? data, Can been by where -- you share some you to of there I province. there's terms you significant color opportunities color according in variance can? in at Can terms of the the your mean, provincial quite if

Ann Gillin Lefever

you Pablo, Could sorry, ask again? we missed question. your it

Pablo Zuanic

look can give of in that or know terms seems share? don't to company's type right, in momentum the variance if provinces, penetration the share increase significant whether at room any to be in can of provinces, but HiFyre I across the provinces. of of whether various you BC, When terms it's color No, you the color those give you in there Weed terms across some whether of Ontario, numbers color? Alberta, terms give Crawler, in your can share if data I are

Ann Gillin Lefever

Pablo, a Ann, it's question. it's great

You are correct.

share what and on. it there. get strongest his as in province, off on have And addressing and closer And quite We in vary. to each Ontario and closer consumption, Orville province's really very are something team does variances they're is understanding directly. There nuances drives each that tapers are this we from it focused to

improvement share going that going forward. a you're that's think some I So see place to

Pablo Zuanic

one then, Mike. And follow-up, just

side, to of branded even if get deeper the you X that's look you at up think recently. that? if chunk of thinking $X in It your came also you before, on your On quarter, the guess finding importers million not don't know some you I gets various $X when in the selling export to terms terms half, I there, need again you question have there? a can on Germany, branded visibility to more of international opportunity How wholesale number, million that.But I color don't that but do need more would in re-exported. been But like X-part I understand be get give you -- that per going domestic, number. range about a business, do question, to or know I good that, are aggressive related quarter, product

Mike DeGiglio

Yes.

wherewithal the and We don't they of are But are get aggressive. had a of will very up them aggressive, sheets. more as Steve have balance starting companies, these and we the mentioned, lot

with in working number So in a distributors of companies, and Germany U.K. the solid very actually, we're

are or the about in I is showing others, form so, wouldn't to probably board, exported the I aggressive we it's the surprised increasing through across approach being we look, another, forward. going that's We're if, would us start it. or but staffing be So, today. market our international through I of X/X cannabis going in But more say, one think

to Holland, and we we a expansion.Like ourselves. continue so back markets, we that can is, not capital Leli that to So, they generate made with that into the the we're future the what knowing completely mentioned, funding decision way earnings are want Steve plow

that as on track us own it's especially developing business, well. brands our international us. parallel is right the So with But internationally interesting on BXB side, for now,

building that Pure spot exports strong XX% sheets we generating up, keeping right internationally So now, of but like probably probably the sweet coming Sunfarms. cash our balance flow. But are say, would I through and

Operator

line next comes Markets. of Livshits ATB from with Our Capital question the Eric

Eric Livshits

Eric Livshits for Frederico Gomes.

and currently other Germany having you be to mentioned color the potentially sales? international expanding markets impact on European near-term in developments Netherlands you that what So, kind Would do what find are other you of see on looking attractive? markets. at you you to And provide in able some recent

Mike DeGiglio

there mean, Switzerland, are smaller legal. Well, than like these a that are markets I Denmark, of markets it's well, talking much is the about but some Germany just well. others. as become markets recreational

operate U.S., the U.S., North limited has the in in they're us at Netherlands company a the licensed When is has American that margins look the in Netherlands at of it if limited So, the Canada, love LPs greatest are we licenses. is by the only the up. being X states. look the licensed country. XX how Netherlands And where We the you for we set how

is -- tax. same expect that hold no the well, things this very government many very I There's Dutch forward. Netherlands' so think going there they as do take Pricing The are up. license advantages. excise margins well high.Packaging to pricing philosophy is And do So wants clear Netherlands, packaging. many the XX holders, will to the we very

for cultivation the We facility for in be So, springboard in beyond going forward. that emerge we expect this the going forward. would that other growth further think a us Netherlands first EU definite recreational markets

sides. in countries we've pursuing even other program, states We on than recreational the we're continue if both think So, Canada. a in or seen there's medicinal certain in U.S. so more in will

Germany of next talking, have approach. regard watching X are is there we So or sort years. countries over that EU in a doing, But the the moving Netherlands, many X what and the needle X-pronged

Operator

DeGiglio call closing I'm And Michael like you. Thank time. at over to this to showing for the further questions I'd back no remarks. hand

Mike DeGiglio

next to May. and our Thanks, us forward call in for Thank Shannon, today. you. everyone, We to you joining look speaking on thanks,

Operator

This concludes Thank participation. you your today's conference for call.

You now may disconnect.

Village Farms International (VFF) 13 Mar 242023 Q4 Earnings call transcript