Press Release – Indiva Reports Third Quarter Fiscal 2021 Results

Indiva Reports Third Quarter Fiscal 2021 Results

Achieves Record Gross Margin, Positive Adjusted EBITDA and Continues to Lead the Edibles Category in Canada

LONDON, Ontario – November 16, 2021:
Indiva Limited (the “Company” or “Indiva”) (TSXV:NDVA) (OTCQX:NDVAF), the leading Canadian producer of cannabis edibles, is pleased to announce its financial and operating results for the third quarter of fiscal 2021 ended September 30, 2021. All figures are reported in Canadian dollars ($), unless otherwise indicated. Indiva’s financial statements are prepared in accordance with International Financial Reporting Standards (“IFRS”). For a more comprehensive overview of the corporate and financial highlights presented in this press release, please refer to Indiva’s Management’s Discussion and Analysis of Financial Condition and Results of Operations for the Three and Nine Months Ended September 30, 2021, and the Company’s Condensed Consolidated Interim Financial Statements for the Three and Nine Months Ended September 30, 2021 and 2020, which are filed on SEDAR and available on the Company’s website,

“We are delighted to report strong year-over-year net revenue growth, record gross profit margins in the third quarter of 2021, and positive adjusted EBITDA for the second consecutive quarter. Indiva maintained leading market share in the edibles category in the third quarter, driven by new product introductions and organic growth of existing SKUs,” said Niel Marotta, President and Chief Executive Officer of Indiva. “Looking forward to the fourth quarter of 2021, we expect to see sequential net revenue growth based on continued organic growth, the strength of purchase orders booked to date, and expected new SKU and product introductions. We also expect to see continued margin expansion in the fourth quarter of 2021, driven by higher revenues and continued improvement in operating efficiencies. Indiva has grown its national distribution platform to all ten provinces and two territories, and is a trusted partner to all provincial wholesalers.  Looking ahead to 2022, Indiva will leverage this distribution platform, and our ability to continue to profitably scale production through our best-in-class operations, to drive continued organic growth.”



Quarterly Performance

  • Gross revenue in Q3 2021 was $8.3 million representing a 143% increase year-over-year from Q3 2020, and a 15.9% sequential decrease from Q2 2021. Year-to-date, gross revenue increased 194% year over year to $25.04 million. This represents Indiva’s 7th consecutive quarter of year-over-year net revenue growth.
  • Net revenue in Q3 2021 was $7.72 million representing a 155% increase year-over-year from Q3 2020, and a 15% sequential decrease due to seasonal weakness and against difficult comparisons from Q2 2021, which had the benefit of the introduction and initial sell-in of three Wana Quick SKUs as well as two new Bhang chocolate SKUs.  Monthly net revenue has rebounded since the trough in August. Year-to-date, net revenue increased 203% year over year to $23.0 million.
  • Net revenue from edible products grew to $6.92 million, up 226% from $2.12 million in the prior year period and down 18% from $8.43 million in Q2 2021.  Edible product sales represent 90% of net revenue in Q3 2021.
  • Gross profit excluding fair value adjustments, impairments and one-time items, improved by 320% year over year to $2.82 million, and adjusted gross margin improved to a record 37.8% of net revenue versus 34% in Q2 2021 and 22.2% in Q3 2020. Gross profit excluding fair value adjustments, impairments and one-time items declined 8.6% sequentially due to lower quarterly revenues, offset by lower distillate costs. Year-to-date, gross profit increased to $7.08 million, or 31.1% of net revenue, versus $1.31 million or 17.3% of net revenue in the corresponding nine month period last year.
  • The Company expects gross margins to continue to improve in the fourth quarter of 2021 and into 2022, due to improved operating efficiencies from increased output, with diminishing benefit from lower distillate costs.
  • In Q3 2021, Indiva sold products containing 42 million milligrams of distillate, the active ingredient in edible products, which represents a 19% decrease when compared to the 52 million milligrams in product sold in Q2 2021, and a 313% increase compared to 10 million milligrams sold in Q3 2020. The average distillate cost was $0.005 per mg in Q3 2021, which is much more in line with current spot prices.
  • Impairment charges in the quarter totaled $0.446 million, including the disposal of aged inventory.
  • Operating expenses in the quarter were flat sequentially at $3.0 million versus Q2 2021 driven by higher marketing costs, offset by lower sales commissions.  Operating expenses as a percentage of net revenue increased to 39.2% in Q3 2021 versus 34.1% in Q2 2021, but decreased significantly versus 71.6% in Q3 2020.  Year over year, operating expenses increased by 39.4% versus Q3 2020, primarily due to higher marketing and sales commissions driven by higher sales volumes, and higher public company costs. Year-to-date, operating expenses increased by 55.4% to $8.3 million, but declined as a percentage of revenue to 36.2% from 70.5%. The Company expects operating expenses to continue to decline as a percentage of net revenue as the year progresses, and into 2022.
  • Adjusted EBITDA remained positive, declining sequentially in Q3 2021 to $0.17 million versus $0.54 million in Q2 2021, and a loss of $1.1 million in Q3 2020, driven by lower sequential revenue versus Q2 2021, offset by lower distillate costs.  Year-to-date, adjusted EBITDA was positive at $0.22 million, versus a loss of $3.25 million in the nine month period last year.
  • The Company recorded a $4.99 million loss on contract settlement due to the termination of the Dycar manufacturing agreement.  Going forward, the company expects significantly improved cash flow from operations on a monthly basis, due to the refinancing and elimination of this contract.
  • Comprehensive net loss was $6.43 million for the quarter and included one-time expenses and non-cash charges totaling $5.44 million. Net loss per share was $0.05 versus $0.04 in Q3 2020. Excluding these charges, comprehensive loss in the quarter declined to $0.99 million, or $0.01 per share, versus a loss of $2.13 million in Q3 2020.
  • Cash balance at the end of the quarter, which excludes the debt financing and warrant proceeds received subsequent to quarter-end, was $2.6 million.


Q3 2021 Market Share

  • Sell through data from Hifyre for the third quarter of 2021 continues to show strong sales of Indiva edible products.  Retail sales of Indiva products measured by dollars and units continued to grow in the quarter, while market share declined slightly due to sales of products by new category entrants.  With 45% share of sales in the third quarter, Indiva continues to hold its lead in the #1 market share position in the edibles category:
    • Ontario #1 with 42% market share.
    • Alberta #1 with 51% market share.
    • British Columbia #1 with 52% market share.
    • Saskatchewan #1 with 27% market share.
    • Manitoba #1 with 46% market share.
    • Wana Sour Gummies led the edibles category with 35% total category share and 48% sub-category share in gummies. Bhang® continued to lead the chocolate category with 35% share of the chocolate sub-category.
    • Product ranking in Q3 2021 showed the top eight SKUs are Wana™ Sour Gummies (led by Mango Sativa).
    • Based on Hifyre data from British Columbia, Alberta, Ontario, Manitoba and Saskatchewan, the edibles category improved 19% in Q3 2021 to a record $42.17 million in retail sales versus $35.45 million in Q2 2021.


Operational Highlights for the Third Quarter Fiscal 2021

  • Recent OCS data showed that for the quarter ended June 30, 2021, four of the top 10 cannabis products sold by the OCS were Indiva products, as measured by units sold, including three Wana SKUs and one Bhang Chocolate SKU.
  • Indiva expanded its distribution platform to include Prince Edward Island. Indiva now sells product in all 10 provinces in Canada, two territories and in the medical channel through partnerships, including Medical Cannabis by Shoppers.
  • Indiva introduced three new Cookie SKUs from Slow Ride Bakery to the Ontario market, marking Indiva’s first baked goods introduced in the edibles category. According to Hifyre data, Indiva held leading market share in the baked goods sub-category for September 2021, despite distribution beginning in August 2021 and being limited only to the province of Ontario.  Subsequently, Indiva has expanded distribution of Slow Ride Cookies to two additional provinces, and has introduced two new holiday themed SKUs.
  • Indiva introduced a new 10-pack SKU of Wana Strawberry 10:1.
  • Indiva introduced additional premium strains under the Artisan Batch brand, including Unicorn Sherbert by KRFT, Cereal Milk by KRFT and Sticky Larry by Stinky Greens, and expanded its distribution of the Artisan Batch brand to Alberta.


Events Subsequent to Quarter End

  • Indiva completed its Warrant Incentive Program on October 12, 2021. A total of 8,866,666 warrants were exercised, providing gross proceeds to the Company of $3.55 million. 4,433,333 new warrants were issued, exercisable into common shares at $0.45, for a five-year period.
  • Indiva announced an amended and increased debt facility with Sundial Growers Inc., providing the Company with an additional $8.5 million of debt. Proceeds were used to terminate and repay all remaining obligations under the Dycar manufacturing agreement.
  • Indiva introduced Bhang THC White Candy Cane Chocolate in five provinces, which has experienced strong sell-in.
  • Indiva launched Wana 10-pack Blood Orange 20:1, a new flavour for Wana Gummies in Canada, across six provinces and territories.
  • Indiva fulfilled replenishment orders of bubble hash concentrate into the Province of Quebec, and delivered its first shipment of INDIVA Capsules to British Columbia.
  • Indiva introduced new, high-potency, craft grown cultivars to the Canadian market, including Golden Pineapple by HWY 8 and Sour Glue by Purplefarm Genetics. The Company expects to introduce more exciting and unique cultivars from Canada’s best craft cultivators in the coming months.
  • Indiva received nominations for five Adcann Awards, including Craft Brand of The Year, LP Brand of the Year, Best Social Media of the Year, Brand Marketer of the Year and Marketing Campaign of the Year.
  • Pursuant to the press release issued by Canopy Growth (“Canopy”) on October 14th announcing the acquisition of an option to acquire Wana Brands, Indiva wishes to clarify that its exclusive rights to manufacture and distribute Wana Sour Gummies in Canada will remain in place until the earlier of May 2025, or the date upon which Wana terminates its agreement with Indiva following the exercise by Canopy of its option to acquire Wana, following federal legalization of cannabis in the United States. Indiva and Wana may continue their licensing agreement beyond May 2025, if both parties mutually agree.  In the event that Canopy exercises its option prior to May 2025 and causes Wana to terminate the current agreement, Indiva would be contractually entitled to receive a termination payment equivalent to four times the most recent three months of gross revenue, net of license payments, from the sale of Wana products in Canada.  Indiva remains committed to supporting the growth of the Wana brand in Canada.



  • The Company expects sequential and year-over-year net revenue growth, as well as continued margin improvement in the fourth quarter of 2021, as a result of new SKU and product introductions, and improved operating efficiencies.
  • In Q4 2021 and Q1 2022, Indiva will launch several new SKUs including new Wana gummie and Wana Quick SKUs, as well as chewable fruit tablets called “Jewels”. Indiva also expects to continue to introduce additional craft cannabis flower SKUs under the Artisan Batch brand.  Artisan Batch brings Canadians the best dry flower from craft growers with special attention paid to high THC potency, robust terpene content, premium large buds and fresh harvest dates.


Operating and Financial Results for the Three and Nine Months Ended September 30, 2021 And 2020
Operating Expenses
Quarterly Results



Government and private entities are still assessing the present and future effects of the COVID-19 pandemic. Indiva has continued to operate with enhanced health and safety protocols in place to protect its employees. The Company continues to assess the customer, supply chain, and staffing implications of COVID-19 and is committed to making continuous adjustments to minimize disruption and impact. Indiva will remain proactive in its response to the pandemic and compliant with any and all provincial and/or federal policy enacted to protect Canadians.



The Company will host a conference call to discuss its results on Tuesday, November 16, 2021 at 8:30am EST. Interested participants can join by dialing 416-764-8658 or 1-888-886-7786. The conference ID is 01162714.

A recording of the conference call will be available for replay following the call. To access the recording please dial 416-764-8691 or 1-877-674-6060. The replay ID is 162714#. The recording will remain available until Thursday December 23, 2021.


About Indiva

Indiva sets the standard for quality and innovation in cannabis. As a Canadian licensed producer, Indiva produces and distributes award-winning cannabis products nationally, including Bhang® Chocolate, Wana™ Sour Gummies, Slow Ride Bakery Cookies, Jewels Chewable Tablets, Ruby® Cannabis Sugar, Sapphire™ Cannabis Salt, as well as capsules, pre-rolls and premium flower under the INDIVA and Artisan Batch brands. Click here to connect with Indiva on LinkedIn, Instagram, Twitter and Facebook, and here to find more information on the Company and its products.

Investor Contact
Anthony Simone
Phone: 416-881-5154
Email: [email protected]


Disclaimer and Reader Advisory

Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has in any way passed upon the merits of the contents of this press release and neither of the foregoing entities accepts responsibility for the adequacy or accuracy of this release or has in any way approved or disapproved of the contents of this press release.

Certain statements contained in this press release constitute forward-looking information. These statements relate to future events or future performance. The use of any of the words “could”, “intend”, “expect”, “believe”, “will”, “projected”, “estimated” and similar expressions and statements relating to matters that are not historical facts are intended to identify forward-looking information and are based on the parties’ current belief or assumptions as to the outcome and timing of such future events. Actual future results may differ materially. In particular, this release contains forward-looking information relating to the Company’s future operations, future product offerings and compliance with applicable regulations. Various assumptions or factors are typically applied in drawing conclusions or making the forecasts or projections set out in forward-looking information. Those assumptions and factors are based on information currently available to the parties. The material factors and assumptions include the parties being able to maintain the necessary regulatory and other third parties’ approvals and licensing and other risks associated with regulated entities in the cannabis industry. The forward-looking information contained in this release is made as of the date hereof and the parties are not obligated to update or revise any forward-looking information, whether as a result of new information, future events or otherwise, except as required by applicable securities laws. Because of the risks, uncertainties and assumptions contained herein, investors should not place undue reliance on forward looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

This press release does not constitute an offer to sell or a solicitation of an offer to buy any of the securities in the United States. The securities have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws and may not be offered or sold within the United States or to U.S. Persons unless registered under the U.S. Securities Act and applicable state securities laws or an exemption from such registration is available. Not for distribution to U.S. Newswire Services or for dissemination in the United States. Any failure to comply with this restriction may constitute a violation of U.S. Securities laws.


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