In its latest financial report, greenhouse grower Village Farms LP is reporting lower net sales but higher earnings and net income.
On May 14, the Eatontown, N.J.-based company reported net sales decreasing 10% from the same quarter in 2012, to $25.4 million for the quarter ending March 31.
Village Farms realized earnings of 7 cents per share for the recent quarter versus a 2-cent loss for the previous year’s quarter.
Net income increased $3.3 million for the recent quarter.
Earnings before interest, taxes and amortization increased 116% to $6.4 million for the new quarter compared to $3 million for the previous quarter, according to a news release.
In the release, Michael DeGiglio, chief executive officer, said the results met expectations.
He said the numbers would’ve been stronger if a May 2012 hailstorm hadn’t damaged a Marfa, Texas, operation.
DeGiglio said a dispute with the company’s insurance company is delaying production.
“We are moving forward with an alternative tactic in dealing with the insurance claim,” DeGiglio said in the release. “To date, the launch of our exclusive new varieties has received strong retailer response, which has facilitated our desire to seek additional opportunities for increasing our greenhouse capacity to meet this ever increasing demand for these new products, as well as our full line of core products, and mounting retailer interest in new items that we are currently looking to offer.”
Village Farms solved a local labor supply issue by adding company-owned housing and using a stronger employee pool from El Paso, Texas, DeGiglio said in the release.
DeGiglio, who visited a new Monahans, Texas, greenhouse in early May, said in the release the crop is in “the best condition it has been since start up over one year ago.”