Indiva Reports First Quarter Fiscal 2021 Results

Indiva Achieves Record Market Share in April 2021

LONDON, Ontario, June 01, 2021 (GLOBE NEWSWIRE) -- 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 first quarter of fiscal 2021 ended March 31, 2021. 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 press 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, 2021, and the Company's Condensed Consolidated Interim Financial Statements for the Three Months Ended March 31, 2021 and 2020, which are filed on SEDAR and available on the Company’s website,

“We are pleased to report continued growth in our business, strength in retail sell-through, improvement in market share and a tripling of our net revenue year-over-year. On a sequential basis, the first quarter of 2021 presented temporary challenges resulting from seasonality and provincial lockdowns, coupled with a very difficult comparison against strong sell-in of new Wana Sour Gummies products in Q4 2020; however Indiva ended the quarter with record net monthly revenue in the month of March 2021,” said Niel Marotta, President and Chief Executive Officer of Indiva. “Looking forward to Q2 2021, the Company expects to resume sequential growth in quarterly net revenue to record levels, given the receipt of record purchase orders to date, and we expect to see continued improvement in gross margins. New products introduced in late Q1 and early Q2, including three new Wana Quick SKUs and two new Bhang Chocolate SKUs, have been well received across Canada, and data continues to indicate that Indiva is expanding its leading market share in the edibles category. We are very excited about the Company’s growth prospects for the balance of fiscal year 2021.”

Quarterly Performance

  • Gross revenue in Q1 2021 was $6.87 million representing a 203% increase year-over-year from Q1 2020, and a 10.5% sequential decrease from Q4 2020.
  • Net revenue in Q1 2021 was $6.22 million representing a 209% increase year-over-year from Q1 2020, and an 11.8% sequential decrease from Q4 2020, and driven primarily by sales of category leading edibles, including Wana Sour Gummies and Bhang Chocolate.
  • Net revenue from edible products grew to $5.53 million, up 243% from $1.61 million in the prior year period and down slightly from record levels of $5.92 million in Q4 2020. Edible product sales represent 89% of net revenue in Q1 2021.
  • Gross profit before fair value adjustments and impairments, improved sequentially and year-over-year to a record $1.18 million, and increased to 19.0% of net revenue versus 2.4% in Q1 2020 and 12.3% in Q4 2020. The improvement in gross margin resulted from the Company beginning to benefit from the lower cost distillate used in production, with the majority of the benefit yet to be realized. The Company expects gross margins to continue to improve in Q2 2021, as the Company continues to benefit from substantially lower distillate costs.
  • Impairment charges in the quarter totaled $0.8 million, including the disposal of product that did not meet the Company’s quality standards, disposal of aged inventory and write-downs in the quarter.
  • Operating expenses in the quarter decreased by 12.5% to $2.22 million, versus Q4 2020 and increased by 40.2% versus Q1 2020, primarily due to higher marketing and sales commissions, offset by lower administrative costs. The Company expects operating expenses to decline as a percentage of net revenue as the year progresses.
  • Comprehensive net loss included one-time expenses and non-cash charges totaling $1.53 million. Excluding these charges, comprehensive loss in the quarter declined to $1.49 million versus a loss of $1.84 million in Q1 2020.
  • Cash balance stood at $7.1 million at March 31, 2021.

April 2021 Market Share Hits New Record

  • In April 2021, according to Ontario Cannabis Store ("OCS") data, Indiva broke into the top 10 in overall market share, ranking 9th amongst Licenced Cannabis Producers in Ontario, across all categories.
  • Sell through data from Hifyre for the month of April 2021 shows strong sales of Indiva edible products. With a 48% share of sales, up from 46% in the month of March 2021, Indiva continues to expand its lead in the #1 market share position in the edibles category. Market share increased in April across all provinces:
    • Ontario #1 with 47% market share. Note: OCS data put Indiva market share in the Edibles category at 45.2% for April, an increase from 44.6% in March.
    • Alberta #1 with 52% market share.
    • British Columbia #1 with 50% market share.
    • Saskatchewan #1 with 29% market share.
    • Manitoba #1 with 51% market share.
    • Wana Sour Gummies led the edibles category with 36% category share.
    • Bhang® led the chocolate category, with Bhang® Milk Chocolate remaining the top selling chocolate edible SKU nationally.
    • Product ranking in April 2021 showed the top five SKUs are Wana™ Sour Gummies (led by Strawberry-Lemonade) and seven of the Top 10 SKUs are from Indiva.
    • Based on Hifyre data from British Columbia, Alberta, Ontario and Saskatchewan, the edibles category improved in April 2021 to a record $11.04 million in retail sales versus $5.0 million in April 2020, and $10.7 million in March 2021.
    • Turning to OCS data, the edibles category in Ontario declined slightly from March 2021, to $3.5 million in April 2021.  
    • Headset data for April 2021 showed eight of the top nine edible products in Ontario were Indiva products.
    • The Company will address the balance of Q2 market share in conjunction with the release of its Q2 financial results.

Operational Highlights for the First Quarter Fiscal 2021

  • The Company closed a $22 million debt and equity placement with Sundial Growers Inc. on February 23, 2021.
  • Six “Always Available” SKUs from Indiva became available on the OCS, including three Bhang Chocolate SKUs and three Wana Sour Gummies SKUs.
  • Indiva announced an extension to its license agreement with Wana Brands Inc. The amended agreement will be for a five year term, and may be extended for three additional five year terms. Indiva will continue to have the exclusive right to produce and distribute Wana products in Canada. 
  • Indiva expanded its distribution to nine provinces and two territories, adding a supply agreement with the province of Newfoundland, and a distribution platform in the Northwest Territories.
  • Indiva products became available for purchase through Medical Cannabis by Shoppers™. Indiva also entered into an agreement to supply AbbaMedix with Indiva cannabis products.
  • Indiva introduced three additional gummie SKUs nationally under the Wana Quick brand in March 2021, including Pineapple Coconut, Orchard Peach and Strawberry-Lime flavours. These products are currently available in six provinces and one territory.
  • Indiva introduced additional strains under the Artisan Batch brand including D. Bubba from Canandia, which sold out very quickly in Ontario.
  • Indiva strengthened its board of directors with the addition of Mr. Russell Wilson to the Company’s board.

Events Subsequent to Quarter End

  • Indiva introduced two new Bhang chocolate flavours nationally in Q2 2021: Bhang Cookies & Cream and Bhang Mocha Caramel. Both SKUs are currently available in stores across Canada including BC, Alberta, Ontario and Saskatchewan as well as in the Yukon.
  • Indiva introduced new high-potency, craft grown cultivars to the Canadian market under its Artisan Batch brand.


  • Purchase orders received to date in the second quarter of 2021 have shown solid increases, and the Company expects a resumption in sequential net revenue growth to record levels in Q2 2021.
  • The Company continued to work through finished goods containing expensive distillate in Q1, and expects further margin improvement in Q2 2021 as a result of lower distillate costs.
  • Indiva intends to introduce Ruby Jewel chewable tablets, as well as Ruby Sugar in the second half of 2021.
  • Indiva also expects to continue to introduce additional craft cannabis flower SKUs under the Artisan Batch brand. Artisan Batch puts special focus on bringing Canadians the best dry flower from craft-growers. Special attention is paid to 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)20212020
Gross revenue6,870.2 2,264.8 
Net revenue6,221.1 2,013.3 
Gross margin before fair value adjustments and impairments1,183.1 48.9 
Gross margin before fair value adjustment and impairments (%)19.0%2.4%
Loss and comprehensive loss(3,028.8)(2,438.1)
Adjusted EBITDA(524.4)(1,162.0)
Net loss per share – basic and diluted(0.03)(0.03)
Comprehensive loss per share – basic and diluted(0.03)(0.03)

1 Adjusted EBITDA is a Non-IFRS Measure. 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 excluding capitalized amortization in cost of sales, 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.

Operating Expenses

 Three months ended
March 31
(in thousands of $)20212020
General and administrative1,125.51,211.5 
Marketing and sales872.5344.5 
Research and development-1.9 
Share-based compensation111.2(3.8)
Depreciation of property, plant and equipment56.227.4 
Amortization of intangible assets52.00.1 
Total operating expenses2,217.31,581.5 

Quarterly Results

(in thousands of $, except per share figures)Q1 2021Q4 2020Q3 2020Q2 2020Q1 2020
Net revenue6,221.1 7,050.6 3,027.2 2,559.7 2,013.3 
Comprehensive net loss(3,028.8)(6,884.0)(3,571.8)(2,528.7)(2,438.1)
Basic and diluted loss per share(0.03)(0.06)(0.04)(0.03)(0.03)

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.

The Company will host a conference call to discuss its results on Tuesday, June 1, 2021 at 8:30am EST. Interested participants can join by dialing 416-764-8658 or 1-888-886-7786. The conference ID is 13464934.

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 464934#. The recording will remain available until Wednesday June 30, 2021.


Indiva sets the standard for quality and innovation in cannabis. As a Canadian licensed producer, Indiva creates premium pre-rolls, flower, capsules, and edible products and provides production and manufacturing services to peer entities. In Canada, Indiva produces and distributes the award-winning Bhang® Chocolate, Wana Sour Gummies, Wana Quick, Ruby® Jewels Chewable Tablets Ruby® Cannabis Sugar, Sapphire™ Cannabis Salt, Artisan Batch, and other Powered by INDIVA™ products through license agreements and partnerships. Click here to connect with Indiva on LinkedIn, Instagram, Twitter and Facebook, and here to find more information on the Company and its products.

Anthony Simone
Phone: 416-881-5154


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Certain statements contained in this press 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 release contains forward-looking information relating to the Company's future operations, future product offerings and compliance with applicable regulations. 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 parties. The material factors and assumptions include the parties being able to maintain the necessary regulatory and other third parties’ approvals and licensing and other risks associated with regulated entities in the cannabis industry. The forward-looking information contained in this release is made as of the date hereof and the parties are not obligated 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 contained herein, investors should not place undue reliance on forward looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

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