Indiva Reports First Quarter 2022 Results

Published: May 20, 2022

Indiva Reports First Quarter 2022 Results

Indiva Limited, the leading Canadian producer of cannabis edibles and other cannabis products, announced its financial and operating results for the first fiscal quarter ended March 31, 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 Months Ended March 31, 2022, and the Company’s Consolidated Financial Statements for the Three Months Ended March 31, 2022 and 2021, which are filed on SEDAR and available on the Company’s website,

“We are pleased to report very strong year-over-year revenue growth in the first quarter of 2022, and continued gross margin improvement compared to fiscal 2021. According to data from Hifyre Inc., Indiva continues as the dominant national market share leader in edibles,” said Niel Marotta, President and Chief Executive Officer of Indiva. “Looking forward, we have many new products and brands to introduce in 2022, as we leverage our distribution across all 13 provinces and territories in Canada. Specifically, Indiva will continue to delight its customers and clients and drive margin-accretive top line growth in 2022 with the introduction of Grön Pearl gummies and Grön Pips candy-coated chocolates, Dime Industries Vapes, as well as new edible and extracts products to be listed under our new in-house consumer brand ‘Indiva Life’. We will launch new edible and extract products in Q2 and in the second half of 2022 under the Indiva Life brand, which will come to market as a result of Indiva’s own in-house innovation.”


Quarterly Performance

  • Gross revenue in Q1 2022 at $9.7 million, representing a 6.6% sequential decrease from Q4 2021, and a 41.2% increase year-over-year from Q1 2021.

  • Net revenue in Q1 2022 was $8.95 million, representing a 5.4% sequential decrease from Q4 2021, and a 43.8% increase year-over-year from Q1 2021, driven primarily by higher sales of category leading edibles including Wana Sour Gummies and Bhang Chocolate, offset by seasonal impacts and lower non-edible revenue.

  • Net revenue from edible products grew to $8.5 million, up 3% from $8.2 million in Q4 2021 and up 54% from $5.5 million in the prior year period. Edible product sales represent 95% of net revenue in Q1 2022.

  • Gross profit before fair value adjustments, impairments and one-time items improved year-over-year, but declined sequentially, to $2.7 million, or 30.0% of net revenue, versus 31.7% in Q4 2021 and 19.0% in Q1 2021. The decline in gross margin percentage sequentially was due to additional labour required in processing, higher shipping costs, lower overhead absorption on goods sold in the quarter, and some returns of product, which are more one-time in nature, as it related to past contract manufacturing agreements. The Company expects margins to improve in the second half of 2022 as new automation for production and packaging comes online.

  • In Q1 2022, Indiva sold products containing 54.3 million milligrams of distillate, the active ingredient in edible products, which represents a 10% decrease when compared to the 60.4 million milligrams in product sold in Q4 2021, and a 84% increase compared to 29.4 million milligrams sold in Q1 2021. The sequential decline was a function of lower sales due to seasonality and mix shift away from multi-pack SKUs.

  • Impairment charges in the quarter totaled $0.85 million. This impairment includes a write off of aged finished goods and bulk cannabis as well as certain packaging for contract manufacturing arrangements no longer in place, offset by a recovery on oil-based products which continue to sell. The Company will continue to work to monetize any impaired inventory which remains saleable.

  • Operating expenses in the quarter decreased 14% sequentially, representing 39.2% of net revenue, versus 43.0% in Q4 2021 and 35.9% in Q1 2021. Operating expenses declined due to lower general and administrative costs, including lower professional fees and lower research and development costs, offset by higher marketing costs and sales commissions.

  • Adjusted EBITDA improved sequentially in Q1 2022 to a loss of $0.33 million, versus a loss of $0.49 million in Q4 2021, due to lower sales and margins offset by lower operating expenses. Q1 2022 improved versus a loss of $0.51 million in Q1 2021, driven by higher sales and improved margins. See “Non-IFRS Measures“, below.

  • Comprehensive net loss of $3.0 million included one-time expenses and non-cash charges for impairment of inventory and property, plant and equipment totaling $1.1 million. Excluding these charges, comprehensive loss declined to $2.0 million versus an adjusted loss of $2.3 million in Q4 2021 and $1.5 million in Q1 2021.

Operational Highlights for the First Quarter 2022
  • Indiva achieved national distribution, across all 10 provinces and 3 territories, adding a supply agreement with Nunavut in Q1 2022.

  • The OCS accepted four Grön Pearl gummie listings, with initial deliveries expected in July 2022.

  • Two new SKUs were launched under the Jewels brand. The cannabis tarts, available in Strawberry and Raspberry 1:1 flavours, are perfect for micro dosing at 1 mg per tablet.

  • Indiva launched Bhang THC Toffee and Salt Milk Chocolate in BC.

  • Wana Quick Midnight Berry launched in Ontario, BC and Alberta, and experienced strong sell-in, quickly becoming one of the most popular CBN products in the country. Indiva also introduced two additional gummie SKUs nationally, including under the Wana Quick brand, Lemon Cream and Island Punch.

  • Indiva launched a new craft cultivar called Platinum Jelly by Stinky Greens, under the Artisan Batch brand.

Events Subsequent to Quarter End
  • 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 subsequent to quarter end including Wana Passion Fruit and Artisan Batch Mimosa Live Rosin.

  • 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, extracts and pre-rolls, all of which have received preliminary acceptance from provincial wholesalers.

  • Indiva continues to receive strong interest in new product and SKU offerings from provincial wholesalers. In the most recent OCS product call, Indiva submitted 42 new SKUs for listing including Grön Pearl Gummies and Pips candy-coated chocolates, Dime Vapes, Indiva Life edibles, extracts and pre-rolls, as well as new Artisan Batch flower and pre-rolls.

Market Share
  • Sell through data from Hifyre Inc. for the first quarter of 2022 shows strong sell-through of Indiva edible products. With 34.2% share of sales, Indiva continues to lead in the #1 market share position in the edibles category:
    • Ontario: #1 with 33.1% market share.
    • Alberta: #1 with 32.8% market share.
    • British Columbia: #1 with 41.5% market share.
    • Saskatchewan: #1 with 21.5% market share.
    • Manitoba: #1 with 37.1% market share.
    • Wana™ Sour Gummies led the edibles category, with 28.0% category share, and 37.6% sub-category share, and Bhang® continued to lead the chocolate category with 34.8% sub-category share.
    • Product Ranking in Q1 2022 showed the top 6 of the Top 10 edible SKUs are from Indiva, led by Wana Pomegranate Blueberry Acai.
    • Based on Hifyre Inc. data from British ColumbiaAlbertaOntarioManitoba and Saskatchewan, the edibles category declined very slightly in Q1 2022 to $51.2 million in retail sales from a record $51.8 million in Q4 2021.

  • The Company expects Q2 2022 net revenue to be higher sequentially, driven by new product introduction and continued strength in our core products. In the second half of the year, the Company expects robust sequential and year-over-year growth, due to the introduction of several new products and SKUs including, Pearls gummies, Pips candy-coated chocolates, 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.

  • Indiva also expects to continue to introduce additional craft cannabis flower SKUs under the Artisan Batch brand, with special focus on high THC potency, robust terpene content, premium buds and fresh harvest dates.


Three months ended

March 31

(in thousands of $, except gross margin %

and per share figures)



Gross revenue



Net revenue



Gross margin before fair value adjustments

and impairments



Gross margin before fair value adjustment

and impairments (%)



Loss and comprehensive loss



Adjusted EBITDA[1]



Earnings per share – basic and diluted



Comprehensive earnings per share – basic

and diluted



See “Non-IFRS Measures“, below.

Operating Expenses

Three months ended

March 31

(in thousands of $)



General and administrative



Marketing and sales



Research and development


Share-based compensation



Depreciation of property, plant

 and equipment



Amortization of intangible




Expected credit loss


Total operating expenses



Separately, the Company announces that the board of directors of the Company has approved the grant of an aggregate of 222,222 restricted share units (“RSUs“) to a certain consultant pursuant to its amended and restated omnibus incentive plan (the “Plan“).

All of the RSUs will vest on the one year anniversary of the date of grant. Each vested RSU will entitle the holder thereof to receive a cash payment equal to the closing price of the common shares of the Company on the last trading date prior to the vesting date, or at the discretion of the board of directors of the Company, one common share of the Company or any combination of cash and common shares.

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, Grön edibles, Dime IndustriesTM 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 LinkedInInstagramTwitter and Facebook, and here to find more information on the Company and its products.