Pure Sunfarms sees steady growth in Canadian cannabis sales, profit

Did you miss the webinar “Women Leaders in Cannabis: Shattering the Grass Ceiling?” Head to MJBiz YouTube to watch it now!

Licensed cannabis producer Pure Sunfarms reported a growing profit for its July-September quarter on the back of organic sales growth in its key markets of Ontario, Alberta and British Columbia.

British Columbia-based Pure Sunfarms, a subsidiary of Village Farms International, booked net sales of 34.5 million Canadian dollars ($27.4 million) for the third quarter ended Sept. 30, up 12% over its second-quarter sales of CA$30.4 million.

Adjusted EBITDA, a measure of profitability, rose to CA$10.9 million, while net income was CA$6.7 million, 40% higher than the April-June quarter, the company announced Tuesday in a news release.

It was the 12th consecutive quarter of positive-adjusted EBITDA.

The quarterly results were in line with analyst expectations.

Pure Sunfarms has not experienced a loss of market share so far this year, unlike large-scale competitors Aurora Cannabis, Canopy Growth and Tilray.

Pure Sunfarms started the year with about 7% of Canada’s adult-use cannabis market outside Quebec, per digital retail platform Hifyre. As of the end of October, that stood at approximately 9%.

Pure Sunfarms is expanding cultivation while competitors are cutting back.

Are you a social equity cannabis license holder or applicant?

The MJBizCon team is now accepting 2023 Social Equity Scholarship Program applications.

The mission of this program is to provide social equity cannabis license holders or applicants access to the #1 global cannabis industry conference + tradeshow in Las Vegas.

Who can apply?

  • Students currently enrolled in a cannabis-related program at an accredited university or college.
  • Cannabis executives at licensed social equity cultivation, extraction/processing, retail, manufacturing/brand businesses (or awaiting application approval).

Don’t miss out on this potentially life-changing opportunity.

Apply to attend MJBizCon today – The application period will close on July 24!

In the quarter, Pure Sunfarms initiated cultivation in the completed half of a second 1.1 million-square-foot greenhouse in Delta, British Columbia.

The net revenue increase from the second quarter to the third consisted of a 1% increase in Pure Sunfarms-branded sales and a 48% rise in nonbranded sales.

For the quarter ended Sept. 30, almost 60% of revenue came from Pure Sunfarms-branded flower and pre-rolls, and 7% was from branded oils, edibles and vapes, according to the release.

In the United States, Village Farms International’s cannabis segment consists of Balanced Health, which it acquired in August for $75 million.

U.S. hemp sales were roughly $7,000.

From Aug. 16 through Sept. 30, U.S. cannabis net sales were $3.8 million.

U.S. cannabis adjusted EBITDA was $672,000, while net income was $300,000.

Including its vegetable division, Village Farms reported sales of $72.4 million in the quarter, up from the previous quarter’s $70.4 million.

Adjusted EBITDA was $6.7 million in July-September, up from $1.6 million in April-June.

Shares of Village Farms International are traded as VFF on the Nasdaq and Toronto Stock Exchange, respectively.