Village Farms International, Inc.

Good morning, ladies and gentlemen. Welcome to Village Farms International's fourth quarter and year-end 2025 financial results conference call. This morning, Village Farms issued a news release reporting its financial results for the fourth quarter and year-end of December 31st, 2025. That news release, along with the company's financial statements, are available on the company's website at villagefarms.com under the Investors heading. Please note that today's call is being broadcast live over the internet and will be archived for replay both by telephone and via the Internet beginning approximately one hour following completion of the call. Details of how to access the replays are available in today's news release. Before we begin, let me remind you that forward-looking statements may be made today during or after the formal part of this conference call. Certain material assumptions were applied in providing these statements, many of which are beyond our control. These statements are subject to a number of risks and uncertainties that could cause actual results to differ materially from those expressed or implied in forward-looking statements. A summary of these underlying assumptions, risks, and uncertainties is contained in the company's various security filings with the SEC and Canadian regulators, including its Form 10-K MD&A for the year ended December 31, 2025, which will be available on EDGAR and CDAR+. These forward-looking statements are made as of today's date and except as required by applicable securities law, we undertake no obligation to publicly update or revise any such statements. I would now like to turn the call over to Michael DiGilio, Chief Executive Officer of Village Farms International. Please go ahead, Mr. DiGilio.

Thank you, Liz. Good morning, everyone, and thank you for joining us. With me today are Steve Ruffini, our Chief Financial Officer, Anne Gilliland-Lefevre, our Chief Operating Officer, and Sam Gibbons, our Senior Vice President of Corporate Affairs. So I'm very excited to report our 2025 results, and I'll begin with a review of highlights for the full year in the fourth quarter. Then I'll turn the call over to Steve for a review of the financials before some last closing remarks. Our fourth quarter results again delivered strong profitability, gross margin, and cash flow from operations, which contributed to record levels of performance for each of these metrics in fiscal year 2025. It was also a year that reflected the accumulation of many years of hard work and long-term strategic planning that has prepared us to capitalize on many of the catalysts that are now unlocking value for our stakeholders. Not only did we deliver record profitability and cash flow generation in 2025, but we did so with step function growth across several key metrics compared to 2024. We grew our global cannabis sales by 17% year-over-year with just a partial year of contributions from our expanding Netherlands business. And international export sales increased more than six-fold as we continue to benefit from our leadership position as one of the world's largest EU GMP-certified cannabis operators. This resulted in record consolidated performance, including net income from continuing operations of $21 million, or 19 cents per share, a $49 million improvement compared to the prior year, adjusted EBITDA from continuing operations of $50 million, another improvement of $48 million. and cash flow from continuing operations of $58 million, an improvement of $44 million compared to 2024. Our full-year performance is the result of solid execution against our long-term plan and a strategy focused on improving margin performance, profitability, and cash generation to enable additional growth investments across our platform. Those of you who followed us the longest know that we started with a crawl, walk, run approach to scaling out cannabis business. And that's always been our view, that we don't need to be first mover advantage to build durable, defensible business models in our plant-based consumer goods. But what we do need is vision, patience, discipline, and excellence in asset development, operations, and commercial activities coupled with world-class people capable of leading us forward. We believe we've demonstrated all of these qualities since we expanded cannabis in 2018, and particularly in 2025. Since 2018, we've taken a methodical approach to scaling our capacity and capabilities in Canada, including early recognition of the potential power of EU GMP certification, which we began pursuing nearly six years ago. We've now been EU GMP certified for over four years, and international customers are increasingly seeking our products as more stringent regulations abroad have been restricting routes to market of other operators who can't meet our production and quality standards. The recent financial contribution from our Netherlands business, we're also making years in the making. We acquired our Netherlands license five years ago, and have been very patient and prudent with respect to commercializing our operations and aligning our commencement of sales with the launch of the pilot program last April. We've modeled our business in the Netherlands to ensure return our investment in under a four year timeline and our performance in 2025 clearly demonstrates Village Farms strong stewardship of capital on behalf of our shareholders with positive net income for the year after only three-quarters of revenue performance. And finally, our transaction this past May to privatize our legacy produce business also reflected many years of hard work and preparation to achieve confidence that our cannabis business was ready to stand on its own and to structure transactions that enabled us to retain the attractive long-term optionality that we see for our portfolio of advanced greenhouse assets in Canada and Texas. All of these important developments began unlocking value for our stakeholders in 2025 and provide more evidence of the success of our initial crawl, walk, run approach to scaling our operations. And now we believe we're ready to run as one of the world's largest and most respected scaled cannabis operators. Before I continue discussion on the fourth quarter, I'd like to again take an opportunity to acknowledge all our folks who are enabling our success. It truly does take a village, and our people raised the bar considerably last year. Congratulations to all our team members around the world on a tremendous year. Now turning to the fourth quarter, which demonstrates our third consecutive quarter of positive consolidated net income from continuing operations, adjusted EBITDA, and cash flow from operations.

Ladies and gentlemen, please stand by.