Indiva Reports First Quarter 2024 Results

Published: May 27, 2024

Indiva Reports First Quarter 2024 Results

Indiva Limited, the leading Canadian producer of cannabis edibles, is pleased to announce its financial and operating results for the first fiscal quarter ended March 31, 2024. 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, 2024, and the Company’s Condensed Consolidated Interim Financial Statements for the Three Months Ended March 31, 2024 and 2023, which are filed on SEDAR+ and available on the Company’s website,

“We are very pleased with our performance in the first quarter of 2024, our seasonally weakest quarter. Indiva’s business has transformed in the last year, as greater than 50% of our net revenue, specifically the revenue from Wana which has declined due to the transition to contract manufacturing, and the elimination of revenue from lozenges, has been replaced in the last 12 months. Now that these difficult cross currents have subsided, Indiva is positioned to demonstrate sustainable organic growth in its core brands without fighting against the loss of revenue from Wana and lozenges,” said Niel Marotta, President and Chief Executive Officer of Indiva.

“Growth in our core brands, namely Pearls gummies, where depletions in the big three provinces have more than doubled year-over-year, and the continued growth of the No Future and Blips brands, more than offset the loss of net revenue caused by the movement to contract manufacturing of Wana and the discontinuation of lozenges caused by regulatory requirements. Greater than 30% of our net revenue in Q1 2024 was derived from brands created and owned by Indiva, including Indiva 1432 Chocolate, Indiva Blips tablets, Indiva Doppio Sandwich Cookies, and No Future Gummies and Vapes, up from 20% of net revenue in Q1 2023. Indiva remains committed to product innovation that will support both industry and edible category growth and we have a robust pipeline of new products across No Future, Pearls and Indiva Blips brands which will hit market between June and September of 2024.”


Quarterly Performance

  • Gross revenue in Q1 2024 was $10.6 million, representing a 15.2% sequential decrease from Q4 2023, and a 2.6% increase year-over-year from Q1 2023.

  • Net revenue in Q1 2024 was $9.3 million, representing a 14.1% sequential decrease from Q4 2023 due to seasonal factors, and a 0.9% decrease year-over-year from Q1 2023, driven primarily by strength in core brands, including Pearls by Grön, where net revenue grew by greater than 160% year-over-year, as well as strong contribution from No Future gummies, which was offset by weaker revenue from Wana Sour Gummies, which reported 85% lower net revenue year-over-year, due to the transition to contract manufacturing in June of 2023. The loss of revenue from lozenges, due to Health Canada’s removal from market, following a determination that these are edible products, reduced net revenue in the quarter by greater than $1.3 million versus Q1 2023. In aggregate, the decline in Wana and loss of lozenge revenue totalled $4.9 million of net revenue. This reduction in net revenue from Wana and lozenges was more than offset by growth in Pearls by Grön and the introduction of No Future gummies and vapes, which in total accounted for greater than $5.2 million of incremental net revenue in the quarter.

  • Net revenue from edible products was $8.4 million in Q1 2024, or 89.7% of net revenue, up 14.5% from $7.3 million in the prior year period, driven by strength in core brands offset by weakness in Wana.

  • Gross profit increased 18.4% to $2.8 million or 29.7% of net revenue compared to $2.3 million or 24.8% of net revenue in Q1 2023 due to lower impairments of inventory and positive mix impact. Gross profit before inventory write-down was $2.8 million or 29.8% of net revenue, a decrease versus Q4 2023 and a 11.9% decrease versus Q1 2023, driven by one-time adjustments in property taxes and an increase in overhead costs.

  • In Q1 2024, Indiva sold products containing 186 million milligrams of cannabinoids, the active ingredient in its products, which represents a 14.7% decrease when compared to the 218 million milligrams in product sold in Q4 2023, and a 66.3% increase compared to 112 million milligrams sold in Q1 2023.

  • Impairment charges in the quarter totaled $17,450, a record low, driven by process improvement and an impairment recovery on certain raw materials. This impairment includes a write off of products that did not meet the Company’s quality standards and aged finished goods.

  • Operating expenses in the quarter decreased 0.7% year over year to $3.2 million, or 34.4% of net revenue versus 28.9% in Q4 2023 and 34.3% in Q1 2023.

  • EBITDA was a loss of $0.2 million in the quarter. Adjusted EBITDA decreased sequentially in Q1 2024 to a profit of $0.1 million, versus a profit of $1.5 million in Q4 2023, and a profit of $0.4 million in Q1 2023. See “Non-IFRS Measures”, below.

  • Comprehensive net loss was $1.8 million in Q1 2024 and included one-time expenses and non-cash charges including inventory impairments. This is an improvement from a loss of $2.3 million in Q1 2023. Excluding these charges, comprehensive loss declined to $1.6 million in Q1 2024 or EPS of ($0.01) versus a loss of $1.3 million in Q1 2023 or EPS of ($0.01).

Market Share

  • Data from provincial wholesalers for the first quarter of 2024 shows Indiva’s leadership in the edibles category continues. Indiva holds the #1 ranking in market share by sales and units sold in the edibles category across British Columbia (31.5% share), Alberta and Ontario (27.6% share) driven by continued growth of Pearls by Grön gummies, No Future gummies, Bhang Chocolate, 1432 Chocolate and Doppio Sandwich Cookies. Indiva also holds the #1 SKU ranking by sales and units sold in the edibles category with Pearls Blue Razzleberry 3:1 CBG/THC gummies followed by the #2 SKU with Blackberry Lemonade 1:1:1 CBN/CBD/THC gummies.

Operational Highlights for the First Quarter 2024

  • No Future gummy performance: Since their introduction in August 2023, Indiva has sold greater than 4 million No Future gummies. Aggregate weekly depletions for No Future gummies continue to rise, as the brand and its value proposition continue to gain awareness with consumers and budtenders.

  • LIFE financing: On March 4, 2024, Indiva announced the closing of its previously announced private placement offering pursuant to the listed issuer financing exemption pursuant to Part 5A of National Instrument 45-106 – Prospectus Exemptions, first announced on January 22, 2024, and then amended and restated on February 28, 2024, pursuant to which the Company issued 9,060,000 units of the Company for aggregate gross proceeds of $906,000.

  • New Product Introductions:
    • No Future: Indiva launched four additional No Future 1.2g 510 vapes including Grape Ape Indica, Peach Punch Sativa, Tropical Island Haze Sativa, and Pink Grapefruit Kush Indica, bringing total No Future vape SKUs in market to nine. Additionally, the Company launched three new No Future gummy flavours, including the Red One and the Pink One. Additionally, the Company launched No Future Fatty Patty, an innovative chocolate covered cookie dough edible with 10mg THC.
    • Blips: Indiva has launched a 55-pack to complement the existing 25-pack of these innovative tablets. The 55-pack is available in Alberta and British Columbia, with the Ontario launch slated for June 2024.
    • Pearls: Indiva launched Pearls Lemon Dream CBN 25-pack, which follows on the success of Marionberry CBG 25-pack, and Peach Mango CBD 25-pack. Lemon Dream is now available in licensed stores in British Columbia, Alberta and Ontario.

Events Subsequent to Quarter End

  • New product introductions:
    • No Future: Indiva shipped a new gummy called No Future Stupidly Sour Gummies to Alberta and British Columbia, with Ontario set to launch in August and September. Stupidly Sour Gummies come in three flavours including Arctic Meltdown Blues, Key Lime Cherry Revolt and Citrus Chaos. These additions bring total No Future gummy SKUs in market to ten.
    • Indiva Blips: Indiva broadened its offering of Indiva Blips Tablets, with two additional new 20-count SKUs, one with a cannabinoid ratio of 1:2 THC:CBG, which will ship to British Columbia and Alberta in May, and the other with 1:1 THC:CBD, which will also ship to Alberta in May.
    • Pearls gummies: Indiva shipped a new 5-pack Pearls SKU called Red Razzleberry. With a cannabinoid ratio of 1:1:1 THC:CBD:CBG, this new product piggybacks on the success of the bestselling cannabis product in Canada, Pearls Blue Razzleberry

  • Loan Amendment with SNDL: As announced on April 2, 2024, Indiva repaid $2,000,000 of the principal amount outstanding pursuant to the amendment to the second amended and restated promissory note between Indiva and SNDL Inc. (the “Amended Term Loan“) and shall work to reduce other current liabilities in the near term. In consideration for the repayment of $2,000,000, the amendment removed the Company’s covenant under the Amended Term Loan to ensure a $2,000,000 minimum unrestricted cash balance at all times. The maturity date of the Amended Term Loan continues to be February 24, 2026.

  • Engagement of Advisor: The Company has retained SSC Advisors (the “Advisor“), as its financial advisor, to assist the Company in the evaluation of potential strategic alternatives intended to maximize shareholder value, including but not limited to, financing alternatives, a merger, amalgamation, plan of arrangement, consolidation, reorganization or other similar transactions. SNDL and Indiva continue to act as commercial partners and SNDL remains supportive of Indiva and this process. SSC Advisors can be reached through Aaron Salz at There is no set timetable to complete the strategic review process nor have any decisions been made relating to strategic alternatives at this time. There can be no assurance that the strategic review will result in any binding offer or transaction.


  • The Company expects that Q2 2024 net revenue will be higher on a sequential basis and year-over-year, expected to exceed $10 million, based on the strength of purchase orders from provincial wholesalers and deliveries to date in the quarter. April 2024 was a record month for net revenue, with growth driven by continued strength in Pearls gummies, and the contribution to revenue from No Future gummies and Indiva Blips tablets. Margins are also expected to improve sequentially in Q2 2024 due to higher sales, improved product mix and improved overhead absorption. For the fiscal year 2024, the Company expects to generate record net revenue and record EBITDA, driven by continued strength in its core brands, bolstered by new product introductions and continued efficiency gains at the production facility from automation and process improvements.