Village Farms experiences good year, increased earnings
According to Village Farms CEO Michael DeGiglio, the greenhouse grower's 2015 results continue to demonstrate the companies upward trend to normalized revenue and cash flows since the hail storm setback in Marfa, Texas during 2012.
"Our successful industry leading product and packaging innovations that have taken root over the last year, coupled with the addition of another significant grower partner who united with Village Farms after leaving a competitor, is having a beneficial impact that will drive significant growth in top and bottom line results in 2016."
Mike DeGiglio
According to DeGiglio, the enhancement of Village Farms product mix, including multiple exclusive varieties, through the fourth quarter of 2015, coupled with launching the initial winter production from their new partner grower, Great Northern Hydroponics, one of the leading growers based in Ontario, Canada, has been well received by retail customers. "As noted in the value of our biological asset as at December 31, 2015, we are off to a strong start for 2016. This strong start to 2016 gives us confidence to provide guidance of, at least, an estimated 15% year over year growth in both our revenues and EBITDA (Earnings before interest, taxes, depreciation, and amortization)."
"While market pricing for TOV's was lower in the fourth quarter of 2015 versus the fourth quarter of 2014, we maintained a stable year over year overall tomato price due to the increased mix of our new and exciting exclusive tomatoes varieties. If not for a large one-time $250,000 workers' compensation claim paid in the fourth quarter (stemming from a 2012 accident), our results would have been closer to our strong prior year fourth quarter results."
"For calendar year 2016, we will continue to concentrate on further penetration and expansion of our retail relationships and new channel expansion to drive increased market penetration. The additional supply will be attained by increased partner volumes, new partner grower alliances and perhaps additional greenhouse expansion."
"The strong market interests in our recent new product launches (including the launch of certified organic tomatoes) supports our confidence in our pipeline of new and unique varieties that we continue to trial and plan to launch in the future. Our short and long term strategies combining our industry leading technology initiatives on sustainable energy developments, our GATES® greenhouse advances and possible future non-traditional greenhouse product additions continue to progress."
Mr. DeGiglio went on to say "As we celebrate our 27th birthday this month as the oldest operating vegetable greenhouse enterprise in the U.S. I am proud of our performance, our people and our perseverance and we are very grateful to our customers who we are privileged to serve."
For more information: www.villagefarms.com
