Press Release – Indiva Reports Second Quarter 2022 Results

Indiva Reports Second Quarter 2022 Results

Indiva Launches Pearls by Grön Gummies and Remains the National Market Share Leader in the Edibles Category


LONDON, Ontario – August 16, 2022: Indiva Limited (the “Company” or “Indiva”) (TSXV:NDVA) (OTCQX:NDVAF), the leading Canadian producer of cannabis edibles and other cannabis products, is pleased to announce its financial and operating results for the second fiscal quarter ended June 30, 2022. 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 news release, please refer to Indiva’s Management’s Discussion and Analysis of Financial Condition and Results of Operations for the Three and Six Months Ended June 30, 2022, and the Company’s Condensed Consolidated Interim Financial Statements for the Three and Six Months Ended June 30, 2022 and 2021, to be filed on SEDAR and made available on the Company’s website,

“We are very pleased to report record net revenue and gross profit on a year-to-date basis, and expect to see further revenue growth in the second half of 2022, driven by the introduction of more than 25 new SKUs across Canada,” said Niel Marotta, President and Chief Executive Officer of Indiva. “The second quarter was extremely busy operationally, as we began manufacturing new products, including our first commercial batches of Pearls gummies, which were delivered  to the OCS subsequent to quarter end.  We expect to ship Pearls, and many other new products, to additional provinces in the coming weeks. We are pleased to see improvement in gross margins in the quarter, however as per our June 27, 2022, press release, delays in new product deliveries and lack of provincial delivery appointments in certain provinces in late June caused approximately $1 million of sales to slip into Q3 2022, resulting in declining net revenue on a year-over-year basis.  We are very excited for the launch of Pearls by Grön, Indiva Life cookies, lozenges and chocolates, and Dime Vapes. The feedback from key accounts, provincial wholesalers and budtenders across the country has been very positive, and we look forward to continuing to delight of-age Canadian cannabis enthusiasts with the quality and innovation that Indiva products are known for.”



Quarterly Performance

  • Gross revenue in Q2 2022 was $8.9 million, representing an 8.3% sequential decrease from Q1 2022, and a 9.9% decrease year-over-year from Q2 2021. Year-to-date, gross revenue increased 11.0% year over year to a record $18.6 million.
  • Net revenue in Q2 2022 was $8.1 million, representing an 8.5% sequential decrease from Q1 2022, and a 9.7% decrease year-over-year from Q2 2021, due to difficult comparisons versus the introduction of Wana Quick in Q2 2021, and delays in provincial deliveries of new and existing products, causing revenue to slip into the third quarter. Revenue continues to be driven primarily by higher sales of category leading edibles including Wana Sour Gummies and Bhang Chocolate. Year-to-date, net revenue increased 12.1% year over year to a record $17.0 million.
  • Net revenue from edible products in the quarter was $7.2 million, down 14.8% from $8.5 million in Q1 2022 and down 13.9% from $8.4 million in the prior year period. Edible product sales represent 89.1% of net revenue in Q2 2022. Year-to-date net revenue from edible products increased 13.0% year-over-year to a record $15.7 million or 92.6% of net revenue.
  • Gross profit before fair value adjustments, impairments and one-time items declined year-over-year, but increased sequentially, to $2.7 million, or 33.1% of net revenue, versus 29.6% in Q1 2022 and 30.1% in Q2 2021. The improvement in gross margin was due to lower material costs on certain inputs, improved production efficiencies and lower returns and impairments to inventory, offset by lower revenues and lower overhead absorption on goods sold in the quarter. Year-to-date, gross profit before fair value adjustments, impairments and one-time items increased to a record $5.3 million, or 31.3% of net revenue, versus $4.2 million or 27.6% of net revenue in the corresponding period last year.
  • In Q2 2022, Indiva sold products containing 44.2 million milligrams of distillate, the active ingredient in edible products, which represents a 19% decrease when compared to the 54.5 million milligrams in products sold in Q1 2022, and a 16% decrease compared to 52.5 million milligrams sold in Q2 2021.
  • Impairment charges in the quarter totaled $0.52 million. This impairment includes a write off of aged finished goods and bulk cannabis flower, and to a lesser extent, certain packaging for obsolete products, offset by a recovery on oil-based products. The Company will continue to work to monetize any impaired inventory which remains saleable. The Company expects lower inventory impairments going forward as most of the bulk flower inventory originating from terminated contract manufacturing has either been sold or written down.
  • Operating expenses in the quarter decreased 0.4% sequentially, representing 42.9% of net revenue, versus 39.4% in Q1 2022 and 34.4% in Q2 2021. Operating expenses declined due to lower general and administrative costs, which were down 18.8% year-over-year and down 6.1% sequentially, offset by higher marketing costs and sales commissions. Year-to-date, operating expenses increased by 31.2% to $7.0 million due entirely to higher marketing costs and sales commissions.
  • Adjusted EBITDA improved sequentially in Q2 2022 to a loss of $0.15 million, versus a loss of $0.38 million in Q1 2022, and declined versus a profit of $0.49 million in Q2 2021, due to lower revenue and higher marketing expenses, offset by lower cost of goods. Year-to-date, adjusted EBITDA was a loss of $0.53 million versus a loss of $0.01 million in the corresponding period last year. See “Non-IFRS Measures” below.
  • Comprehensive net loss of $2.5 million included one-time expenses and non-cash charges for impairment of inventory and property, plant and equipment totaling $0.5 million. Excluding these charges, comprehensive loss declined to $2.0 million versus an adjusted loss of $2.02 million in Q1 2022 and $0.72 million in Q2 2021.


Operational Highlights for the Second Quarter 2022

  • Dime Industries (“Dime”): Indiva signed an exclusive licensing and manufacturing agreement with Dime. The agreement has a five year term which automatically renews for three additional five year terms. Indiva intends to launch Dime’s proprietary and innovative vape products, including disposable vapes, 510-thread carts and custom batteries beginning in Q3 2022, marking Indiva’s first entrance into the vape category.
  • Awards: Artisan Batch was awarded Best in Grow from Cannabis NB for best Indica flower, namely Sour Glue, produced by Purplefarm Genetics.
  • Indiva launched additional SKUs including Artisan Batch Mimosa Live Rosin. Wana Passion Fruit, Wana Lemon Iced Tea, and Wana Quick Rise and Shine Clementine, with CBG.
  • Indiva introduced its new consumer brand Indiva Life at the 2022 Lift&Co conference. The initial cannabis products to be launched under the Indiva Life brand will include edibles and extracts.  All of the Indiva Life SKUs are now actively being ordered by provincial wholesalers.


Events Subsequent to Quarter End

  • Indiva was awarded 25 additional SKU listings by the Ontario Cannabis Store (OCS), including five SKUs which will participate in the “Flow-Through” program. These additional listings bring Indiva’s OCS listings to a total of 60 SKUs, up from the current level of 35 SKUs. The newly accepted SKUs are across six brands: Indiva Life (including lozenges, cookies and chocolates), Artisan Batch, Pearls by Grön, including three SKUs in addition to the initial four Pearls SKUs delivered in July, Pips by Grön, Dime Vapes and Bhang Chocolate. All SKUs are expected to launch in Ontario in October 2022, with deliveries to additional provinces beginning in September 2022.
  • Indiva completed an agreement with Kronic Relief, of Toronto, Ontario, to bring its premium craft flower to market under the Artisan Batch brand. The OCS has accepted this cultivar, and 3.5 gram jars of Kronic Relief flower are expected to hit shelves in Ontario in Q4 2022.
  • Indiva shipped its initial deliveries of Pearls by Grön to the OCS. The company expects the product to be available for sell-in to Ontario licensed retailers as of August 23rd.


Market Share

  • Data from Hifyre Inc. for the second quarter of 2022 shows strong sell-through of Indiva edible products. With 31.6% share of sales, Indiva continues to lead in the #1 market share position in the edibles category:
    • Ontario: #1 with 30.2% market share.
    • Alberta: #1 with 30.0% market share.
    • British Columbia: #1 with 38.1% market share.
    • Saskatchewan: #1 with 21.5% market share.
    • Manitoba: #1 with 34.6% market share.
    • Wana™ Sour Gummies led the edibles category, with 26.0% category share, and 34.1% sub-category share, and Bhang® continued to lead the chocolate category with 37.6% sub-category share.
    • Product ranking in Q2 2022 showed 6 of the top 10 edible SKUs are from Indiva.
    • Based on data from British Columbia, Alberta, Ontario, Manitoba and Saskatchewan, the edibles category increased by 9% in Q2 2022 to $56.3 million in retail sales from $51.8 million in Q1 2022.


Correction of Prior Period Financial Statements

The Company identified an error in the calculation of excise taxes related to additional duty charged by certain provinces and determined an adjustment is required to excise taxes payable on sales for the period of January 1, 2020 to March 31, 2022. As a result, prior years amounts on the consolidated statements of loss and comprehensive loss with respect to excise taxes, cost of sales, and marketing and sales were corrected to reflect the corrected excise tax payable on sales in those periods, as well as royalty and sales commissions which are recoverable as a result of decreased net revenues for those prior period sales. Management assessed the materiality of the correction described above on prior period financial statements and concluded that these corrections were not material to any prior annual or interim periods. Accordingly, amounts related to the three and six ended June 30, 2021, and as at June 30, 2021, and December 31, 2021, have been re-presented after correction of such immaterial adjustments solely for comparability purposes.



  • The Company expects Q3 2022 and 2H 2022 net revenue to be higher sequentially and year-over-year driven primarily by new product introduction including Pearls gummies, Dime Industries vape products, as well as new Indiva Life branded products, resulting from in-house innovation, namely Double-Stuffed Vanilla Cookies and Double Stuffed Fudge Cookies, as well as Wild Cherry THC Lozenges and Lemon THC Lozenges.
  • Margins are expected to benefit in the second half of 2022 due to the implementation of automation in the production and packaging of edible products. The Company expects to deliver on its commitments for existing or new listings of products, despite some delays in receiving equipment due to global COVID-19-related lockdowns.


Operating and Financial Results for the Three and Six Months ended June 30, 2022 and 2021
Operating and Financial Results for the Three and Six Months ended June 30, 2022 and 2021
Operating Expenses
Operating Expenses



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.


CONFERENCE CALL – Tuesday, August 16, 2022 at 8:30 a.m. (EST):

The Company will host a conference call to discuss its results on Tuesday, August 16, 2022 at 8:30 a.m. (EST). Interested participants can join by dialing 416-764-8658 or 1-888-886-7786. The conference ID number is 34309929.

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 309929#. The recording will remain available until Friday, September 16, 2022.


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, Jewels Chewable Tablets, Grön edibles, Dime Industries™ vape products, as well as capsules, edibles, extracts, pre-rolls and premium flower under the INDIVA, Indiva Life 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 news release and neither of the foregoing entities accepts responsibility for the adequacy or accuracy of this news release or has in any way approved or disapproved of the contents of this news release.

Certain statements contained in this news 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 news release contains forward-looking information relating to, among other things, (i) the Company’s outlook for and expected operating margins and future financial results, (ii) the projected growth of its business and operations (including existing and new segments thereof), and the future business activities of, and developments related to, the Company within such segments after the date of this news release, including the anticipated introduction of new product offerings (iii) the Company’s ability to capture and/or maintain its market share in any jurisdiction, and (iv) the Company’s ability to deliver on its commitments for existing or new listings of products. 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 Company, and include, without limitation, assumptions about the Company’s future business objectives, goals, and capabilities, the cannabis market, the regulatory framework applicable to the Company and its operations, and the Company’s financial resources. Although the Company believes that the assumptions underlying, and the expectations reflected in, forward-looking statements in this news release are reasonable, it can give no assurance that such expectations will prove to have been correct. A number of factors could cause actual events, performance or results to differ materially from what is projected in the forward-looking statements. Specifically, readers are cautioned that forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, as applicable, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, including, but not limited to, risks and uncertainties related to: (i) the available funds of the Company and the anticipated use of such funds, (ii) the availability of financing opportunities, (iii) legal and regulatory risks inherent in the cannabis industry, (iv) risks associated with economic conditions, (v) dependence on management, (vi) public opinion and perception of the cannabis industry, (vii) risks related to contracts with third-party service providers, (viii) risks related to the enforceability of contracts, (ix) reliance on the expertise and judgment of senior management of the Company, and ability to retain such senior management, (x) risks related to proprietary intellectual property and potential infringement by third-parties, (xi) risks relating to the management of growth and/or increasing competition in the industry, (xii) risks associated to cannabis products manufactured for human consumption, including potential product recalls, (xiii) risks related to the economy generally, and (xiv) risk of litigation.

The forward-looking information contained in this news release is made as of the date hereof and the Company is not obligated to, and does not undertake 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 inherent in forward-looking information, investors should not place undue reliance on forward looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

This news release contains future-oriented financial information and financial outlook information (collectively, “FOFI“) about the Company’s prospective results of operations, which are subject to the same assumptions, risk factors, limitations, and qualifications as set out in the above paragraph. FOFI contained in this news release was approved by management as of the date of this news release and was provided for the purpose of providing further information about the Company’s future business operations. The Company disclaims any intention or obligation to update or revise any FOFI contained in this news release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this document should not be used for purposes other than for which it is disclosed herein.

Non-IFRS Measures

This news release makes reference to certain non-IFRS measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS, and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management’s perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS.

The non-IFRS measure used in this news release includes “Adjusted EBITDA”. The Company calculates Adjusted EBITDA as a sum of net revenue, other income, cost of inventory sold, production salaries and wages, production supplies and expense, general and administrative expense, and sales and marketing expense, as determined by management. Adjusted license fee eliminates 50% of the fee which is equivalent to the Company’s share of the joint venture company to which the license fee is paid. Adjusted EBITDA is provided to assist readers in determining the ability of the Company to generate cash from operations and to cover financial charges. Management believes that Adjusted EBITDA provides useful information to investors as it is an important indicator of an issuer’s ability to generate liquidity through cash flow from operating activities and equity accounted investees. Adjusted EBITDA is also used by investors and analysts for assessing financial performance and for the purpose of valuing an issuer, including calculating financial and leverage ratios. The most directly comparable financial measure that is disclosed in the financial statements of the Company to which the Non-IFRS measure relates is income (loss) from operations.


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