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Village Farms Expands Production as Cannabis Sales Surge 29% in Canada

A 758% spike in international exports and soaring margins reveal VFF’s dominance. Now, a bold expansion could redefine Canada’s cannabis market.

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1 min read
In this image we can see an agricultural farm. At the top of the image there are trees.
In this image we can see an agricultural farm. At the top of the image there are trees.

Village Farms Expands Production as Cannabis Sales Surge 29% in Canada

Village Farms International (VFF) has announced a significant expansion of its production capacity, along with impressive financial results for the third quarter of 2025. The company is investing in a 40 metric ton project, expected to boost its annual Canadian salesforce capacity by approximately 33%.

VFF's Canadian cannabis net sales reached CAD 64.1 million, with a gross margin of 56%, a remarkable increase from 26% in the same period last year. International medical exports also soared, rising by 758% year-over-year to CAD 16.3 million. The company achieved record adjusted EBITDA of $20.7 million and an adjusted EBITDA margin of 31% of sales.

The company's Canadian cannabis business grew by 29% year-over-year, while the international medical export division saw sales increase by over 750% year-over-year. Management expects the 40 metric ton capacity expansion to be fully ramped by early 2027, with incremental capacity coming online in Q2 of next year.

VFF's Netherlands business is anticipated to be a strong driver of revenue growth in 2026, helping to maintain the company's relative strength in overall margin performance. The Netherlands business reported sales of $3.6 million and adjusted EBITDA of $1.3 million, with cash at quarter-end nearly $88 million. Consolidated net sales increased by 21% to $66.7 million, driven by growth in the Canadian cannabis segment and the Netherlands' recreational cannabis sales.

Village Farms International's strategic expansion and strong financial performance indicate a promising outlook for the company. With the 40 metric ton capacity expansion underway and the Netherlands business poised for growth, VFF is well-positioned to maintain its competitive edge in the cannabis market.

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