Village Farms year end results
Michael DeGiglio, Chief Executive Officer, stated "Market conditions strengthened for larger tomato products in the final quarter of 2014, which had experienced poor pricing during the prior quarters of the year. Year on year TOV pricing was down 16%, almost all of it emanating from product out of our Canadian operations, however commencing with the fourth quarter TOV pricing improved and was up 9% over the fourth quarter of 2013. As previously mentioned pricing in Canada eroded at the beginning of 2014 with certain Mexican suppliers circumventing the US government's suspension agreement, by shipping directly from Mexico to Canada and then back into the US. This action coupled with increased supply and softer demand continued through the third quarter."
"The stronger fourth quarter results were not solely driven by improved pricing but also our advances in providing unique new product offering to our customers, which are exclusive to Village Farms and demonstrated a noteworthy contribution to our results. As existing competitors have and are expanding capacity, strategic differentiation of our brand remains a continuous improvement priority. With additional new product launches in 2015 and full ramp up of other 2014 initiatives, such as the acquisition and enhancement of our BC land fill gas cogeneration facility, the completion of another 20 acres of hail damaged facilities last June and the closing of our Dominican Republic operation a return to improved results is anticipated."
"While improved pricing positively impacted our fourth quarter financial performance, we are disappointed with our overall 2014 operating results. Many of the positive initiatives implemented in 2014, which had tangible positive contributions, were concealed by poor pricing. We remain unwavering in our objectives to deliver a return to pre-hail storm financial results in 2015."
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