Canadian cannabis company positioned to capitalize on Germany’s historic move towards legalization
The European cannabis landscape witnessed a significant milestone as Germany, one of the continent’s largest economies, passed legislation legalizing the possession of marijuana effective April 1. This move has captured the attention of cannabis companies worldwide, particularly those already established in Germany, including Village Farms International, Inc. (NASDAQ:VFF).
Village Farms CEO, Michael DeGiglio, expressed enthusiasm over the development, citing the company’s strong foothold in the German market. Village Farms received its EU GMP certification in 2022 and commenced shipments of Canadian strains to Germany in 2023, steadily increasing its presence and revenues in the region. With projections indicating Germany’s cannabis market could reach €1.7 billion by 2025, Village Farms views this market as integral to its international cannabis strategy.
DeGiglio’s confidence is supported by Village Farms’ recent financial performance, with record fourth-quarter sales and promising year-over-year growth. Analysts have noted the company’s attractive valuation, with its cannabis unit exhibiting strong EBITDA margins and consistent free cash flow generation.
As Village Farms continues to expand its presence in Europe, its participation in the upcoming Benzinga Cannabis Capital Conference on April 16-17 underscores its commitment to exploring new opportunities and driving innovation in the global cannabis market.
