Village Farms International Inc. (NASDAQ:VFF) Q4 2019 Earnings Conference Call - Final Transcript

Mar 31, 2020 • 08:30 am ET

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Village Farms International Inc. (NASDAQ:VFF) Q4 2019 Earnings Conference Call - Final Transcript

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Q & A
Operator
Operator

[Operator Instructions] Your first question comes from Doug Cooper with Beacon Securities.

Analyst
Doug Cooper

Hi. Good morning, guys. Congratulations on a nice year for Pure Sunfarms. Just a couple of questions on the first quarter is essentially, I guess it's over today, you talked a little bit about the trends whether it's in BC, in Ontario. How do you see the year shaping up in terms of your volumes? Can you talk a little bit about -- you noted market share in Ontario, is it too early to talk market share in BC and Alberta? And maybe just some comments on the new one ounce package and how you think that will be received by the market?

Executive
Michael A. DeGiglio

Yeah. I think it's a little too early. We're just finishing today, as you said, but the traction has been -- we've been very pleased with the traction in the first quarter because really it was the pivot. As I said, the fourth quarter was a pivot for Pure Sunfarms. We have a handcuffs came off from being restricted as a wholesale provider once I receive the Health Canada sales license which was literally the last week of the third quarter.

That coupled with the end of the Emerald Health Therapeutics supply agreement has now just uncuffed and unleashed the company to pursue what it always wanted to do and be vertically integrated to the retail market. So that fourth quarter was the pivot. And now the focus is independently pursuing the retail market across all of Canada with the three of the four major provinces onboard and increasing. And of course with Alberta, they had some back up. So really that order that was sort of placed in December didn't start, it shipped to February.

So I think they're now seeing what the feedback is on those products and we understand that's positive as we expected. And I think we'll see greater traction and have a much clearer view point when we report the first quarter, which is only about six weeks away at this point.

Executive
Stephen C. Ruffini

Yeah. Doug, this is Steve. Ontario is very good about supplying their vendors, which is a -- Pure Sunfarms all the POS data. Alberta and British -- Alberta will not, we were told yesterday and British Columbia, I don't think of reports, the same type of level of data to Pure Sunfarms so they can't measure their market share.

Executive
Michael A. DeGiglio

Right. And the other thing I'll add to that is just that we're probably now we've gone in a matter of basically one to two months from nearly three months from a 100% wholesale to probably north of 90% retail, and we're building on that. So...

Analyst
Doug Cooper

Yeah. You mentioned, Mike, that the wholesale seem to have come back a little bit in Q1. How do you expect it to play out for the year? You anticipate 90% of your revenue will be retail in 2020?

Executive
Michael A. DeGiglio

Well, I would say greater than 80%. I mean that's clearly the focus. That's always