Indiva Announces Q1 Revenue Grows 43.8%, Here Are The Details

Indiva Limited NDVAF NDVA released its financial results for the first fiscal quarter ended March 31, 2022, revealing net revenue of CA$8.95 million ($6.98 million), representing a 5.4% sequential decrease from Q4 2021, and a 43.8% increase year-over-year from Q1 2021.

Q1 Financial Highlights

• Gross revenue in Q1 2022 at CA$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 from edible products grew to CA$8.5 million, up 3% from CA$8.2 million in Q4 2021 and up 54% from CA$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 CA$2.7 million, or 30.0% of net revenue, versus 31.7% in Q4 2021 and 19.0% in Q1 2021.

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

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

"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," stated Niel Marotta, president and CEO 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."

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.

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.

The company will host a conference call to discuss its results on May 19, 2022 at 8:30 a.m. (EST).

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