Village Farms International announced today results for the quarter ended June 30, 2016.
Michael DeGiglio, Chief Executive Officer, stated "Following a strong first quarter, we experienced one-time capacity challenges and charges caused by a significantly higher than expected increase in supply grower volume. We experienced an 87% increase in supply partner revenues as compared to the second quarter of 2015. The significant increase of 220% in supply partner tomato volumes during the second quarter was higher than initially budgeted. This was mainly due to new varieties being grown for the first time. As such, this higher than anticipated volume had an adverse impact on our second quarter results, and it is expected to continue into the third quarter. With that said, we experienced a strong operating performance during the second quarter, lowering our cost of production by 7% at our own greenhouse production facilities versus the same period during 2015, and our new tomato varieties have been well received by consumers."
Mr. DeGiglio added: "We anticipated that we would experience a sizable increase in capacity during 2016 which would take a full crop cycle to absorb and adjust. We've made solid progress building increased market share with multiple new customers as well as with our existing core customer base. We remain confident about our continued growth and our ability to achieve our expected 15% year over year growth in revenues, while our EBITDA is now expected to grow in single digits from 2015 levels."