Canadian edibles producer Indiva Limited NDVA NDVAF announced its financial and operating results Tuesday for the second quarter of fiscal 2021 with record net revenue of CA$9.08 million ($7.2 million) up by 255% year-over-year.
Q2 Financial Highlights
- Net revenue jumped 46% sequentially (hitting CA$9.08 million) driven primarily by increased sales of category-leading cannabis edibles, including Wana Sour Gummies and Bhang Chocolate;
- Net revenue from edible products grew to CA$8.43 million, up 445% from CA$1.54 million in the prior-year period and up 52% from CA$5.53 million in Q1 2021. Edible product sales represent 93% of net revenue in Q2 2021.
- Gross profit before fair value adjustments and impairments, improved by 160% sequentially to a record CA$3.08 million, and increased to a record 34.0% of net revenue, versus 19% in Q1 2021 and 0.8% in Q2 2020.
- Indiva achieved positive adjusted EBITDA in Q2 2021 of CA$0.54 million versus a loss of CA$0.52 million in Q1 2021 and a loss of $1.0 million in Q2 2020.
- Comprehensive net loss was CA$1.42 million for the quarter and included one-time expenses and non-cash charges totaling CA$1 million. Net loss per share was CA$0.01 versus CA$0.03 in Q2 2020. At the end of the reporting period on June 30, the cash balance stood at CA$3.4 million, and working capital stood at CA$5.21 million.
“We are delighted to report record net revenue, record gross profit, and positive adjusted EBITDA for the second quarter of 2021. Indiva continued to grow its market share organically in the second quarter, and this strength has continued through July, driven by new SKU introduction, including Wana Quick fast-acting gummies and Bhang Cookies and Cream chocolate,” Niel Marotta, president and CEO of Indiva said.
“Becoming a top 10 ranked LP nationally by dollar share and top three measured by units, and doing so by driving organic growth rather than through acquisition, is a testament to the talent, dedication and hard work of the entire Indiva team,” Marotta added.
Q2 Operational Highlights
- Obtaining a 50% share of sales in the second quarter, up from 46% in the first quarter of 2021, Indiva continues to expand its lead in the #1 market share position in the edibles category.
- Bhang Milk Chocolate was the highest velocity product in Ontario, according to OCS data published for their fiscal year ended March 31, 2021, selling more units than any other SKU.
- Bhang Cookies and Cream and Bhang Caramel Mocha Milk Chocolate became available nationally.
- Indiva expanded its distribution of Wana Quick fast-acting gummies to six provinces and one territory.
Price Action
Indiva’s shares were trading 4.35% higher at 34 cents per share at the time of writing Tuesday morning.
Photo: Courtesy of Elsa Olofsson on Unsplash
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