Marijuana has been in the news recently amid the U.S. Department of Justice’s proposal to reschedule the drug .
However, Canadian cannabis producer Village Farms (NASDAQ: VFF ) has been booming largely on its own strengths. Earlier this month, the company posted strong results for its first-quarter earnings report. In addition, VFF stock appears to be signaling a potential breakout move.
According to Benzinga , total revenue for the three months ended March 31, 2024 hit $78.1 million. That’s up from $64.
6 million in the year-ago quarter. Further, gross profit hit $15.5 million, an improvement over last year’s print of $12.
3 million. On the bottom line, consolidated net loss came in at $2.9 million, a favorable outcome compared to Q1 2023’s loss of $6.
6 million. Notably, the company’s Canadian cannabis unit (under the Pure Sunframs and Rose LifeScience brands) saw net sales rise by 49% to $37.4 million.
That was a big leap from the $25.1 million posted in Q1 of last year. Moving forward, management is eyeballing international expansion, particularly in Germany.
On a year-to-date basis, VFF stock is now up over 59%. However, shares have been steadily fading since early April, warranting a closer look. Village Farms and the Bullish Flag Although President Joe Biden administration’s initiative to downgrade marijuana to a lower enforcement classification initially lifted cannabis stocks , the upswing hasn’t been linear.
With the inability to sustain momentum , cannab.
