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Indiva Reports Third Quarter Results Including Record Revenue and Positive Income From Operations

Indiva Limited (the "Company" or "Indiva") (TSXV:NDVA), the leading Canadian producer of cannabis edibles, is pleased to announce its financial and operating results for the third fiscal quarter ended September 30, 2023. 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 and Nine Months Ended September 30, 2023, and the Company's Condensed Consolidated Interim Financial Statements for the Three and Nine Months Ended September 30, 2023 and 2022, which are filed on SEDAR+ and available on the Company's website,

"We are delighted to announce the best financial results in Indiva’s corporate history, driven entirely by organic growth, including record net revenue, record gross profit and gross margin, as well as positive EBITDA and positive income from operations. Results benefitted from the introduction and initial sales of No Future gummies and vapes, purchase orders of Wana gummies under our contract manufacturing agreement, and continued growth in Pearls by Grön gummies. We are very pleased with the growth in the Pearls gummy brand since the product first hit shelves in Canada in September 2022, as Pearls is now the number one gummy in Ontario and British Columbia, and is quickly gaining market share in Alberta. Additionally, total purchase orders received since inception in July 2023 for No Future gummies have now exceeded 1.3 million units, marking one of the fastest growth trajectories of any new product introduction in Indiva’s history,” said Niel Marotta, President and Chief Executive Officer of Indiva. “We continue to urge regulators to increase per-package THC limits on legal edibles so we can, as an industry, eliminate public safety risk by providing a safe, legal, competitive alternative to illegal ‘copycat edibles’. Until that day comes, Indiva will continue to leverage its robust new-product pipeline and position as the largest, low-cost producer of edibles in Canada, as we continue to delight of-age consumers with the quality and innovation we are known for."


Quarterly Performance

  • Gross revenue in Q3 2023 was a record $10.9 million, representing a 33.7% sequential increase from Q2 2023, and a 23.7% increase year-over-year from Q3 2022. Year-to-date, gross revenue increased 7.3% year-over-year to a record $29.4 million.
  • Net revenue in Q3 2023 was a record $9.8 million, representing a 30.4% sequential increase from Q2 2023, and a 21.0% increase year-over-year from Q3 2022, driven primarily by the continued growth in Pearls by Grön gummies, initial orders of Wana and the introduction of No Future gummies and vapes. Year-to-date, net revenue increased 6.4% year-over-year to a record $26.7 million.
  • Net revenue in Q3 from edible products increased to a record $9.0 million, up 32.0% from $6.9 million in Q2 2023 and up 24.2% from $7.3 million in the prior year period. Edible products sales represent 92.5% of net revenue in Q3 2023. Year-to-date net revenue from edible products increased 0.8% year-over-year to a record $23.2 million or 86.9% of net revenue.
  • Gross profit before impairments increased year-over-year by 55.3% and increased sequentially by 64.7%, to a record $3.6 million, or 37.1% of net revenue, versus 28.9% in Q3 2022 and 29.3% in Q2 2023. The increase in gross margin percentage was due primarily to higher sales, a mix shift to higher margin products and lower unit costs driven by the implementation of automated equipment in edibles processing and packaging. Year-to-date, gross profit before impairments increased to a record $9.0 million, or 33.7% of net revenue, versus $7.7 million or 30.5% of net revenue in the corresponding period last year.
  • In Q3 2023, Indiva sold products containing 151.7 million milligrams of cannabinoids, the active ingredient in edible and vape products, which represents an 84.5% increase when compared to the 82.2 million milligrams in products sold in Q2 2023, and a 157.1% increase compared to 59.0 million milligrams sold in Q3 2022. The increase was primarily a function of new product introductions.
  • Inventory impairment charges in the quarter totaled $0.6 million and $2.1 million cumulatively year-to-date related primarily to bulk lozenges and packaging which cannot be sold due to Health Canada's order to halt production and sale of these products, the write off of aged and out of spec bulk and finished goods, as well as certain marketing, packaging and raw materials. The Company will continue to work to monetize any impaired inventory which remains saleable.
  • Operating expenses in the quarter decreased 6.1% sequentially, and decreased 10.3% year-over-year, representing a record low at 31.0% of net revenue, versus 43.1% in Q2 2023 and 41.8% in Q3 2022. Operating expenses decreased sequentially primarily due to lower marketing, research and development and share based compensation costs. Year-to-date, operating expenses decreased by 8.4% to $9.5 million primarily due to lower marketing costs and share based compensation costs, partially offset by increased general and administrative costs.
  • EBITDA was a positive $0.7 million in the quarter. Adjusted EBITDA increased sequentially in Q3 2023 to a profit of $1.0 million, versus a loss of $0.6 million in Q2 2023, and a loss of $0.5 million in Q3 2022 due to higher sales and higher gross margins. Year-to-date, EBITDA was a profit of $0.7 million versus a loss of $3.5 million, and adjusted EBITDA was a profit of $0.8 million versus a loss of $1.0 million in the corresponding period last year. See "Non-IFRS Measures", below.
  • Pre-tax operating income was a profit of $0.01 million in the quarter and a loss of $2.6 million year-to date.
  • Comprehensive net loss was $0.9 million in the quarter, including non-cash charges for impairment of inventory of $0.6 million and a $0.3 million gain on debt modification. Year-to-date, comprehensive net loss was $4.1 million, and included a one-time gain of $2.1 million on the sale of license rights and a $0.3 million gain on the modification of debt offset by non-cash charges for impairment of inventory and assets held for sale totaling $2.3 million. Excluding these amounts, comprehensive loss increased to $0.6 million versus an adjusted loss of $2.3 million in Q2 2023 and $2.2 million in Q3 2022. Year-to-date adjusted loss decreased to $4.2 million versus year over year of $6.1 million in 2022.

Operational Highlights for the Third Quarter 2023

  • Indiva launched a new value-focused brand called No Future, including four gummy SKUs and three 1.2g vape SKUs. The Company shipped product to British Columbia and Alberta in the third quarter, as well as initial shipments to Ontario in late September, and has since fulfilled replenishment orders in all three provinces. Since the introduction and initial shipments of No Future gummies in July, Indiva has received POs exceeding 1.3 million units.
  • Indiva rebranded the Indiva Life Sandwich Cookies as Indiva Doppio Sandwich Cookies.
  • The Company received acceptance of 13 new SKUs for listing, the majority of which were derived from in-house innovation, including four No Future Gummies in Ontario, Alberta, and British Columbia and three No Future 1.2g vape products in Ontario and Alberta along with one No Future vape in British Columbia. Six additional SKUs received acceptance across multiple brands including Bhang, Doppio, Indiva 1432 and a 25-pack CBD gummy SKU under the Pearls by Grön brand.
  • Indiva amended the terms of its existing non-revolving term loan facility (the "Amended Term Loan") with SNDL Inc. ("SNDL"), and has also entered into a supply agreement with SNDL (the "Supply Agreement") whereby SNDL will supply the Company with certain distillate products on an exclusive basis. The Supply Agreement provides for minimum monthly purchase commitments by the Company (the "Minimum Purchase Commitment"). The prices of all products supplied under the Supply Agreement are subject to periodic adjustments depending on prevailing market pricing. The Supply Agreement has an initial term of thirty (30) months, which automatically renews for successive twelve (12) month periods, unless earlier terminated. Provided that the aggregate minimum purchase commitment under the Supply Agreement has been met, the Supply Agreement will automatically terminate upon re-payment of the Amended Term Loan, unless the Company elects otherwise. The Amended Term Loan extended the maturity date to February 24, 2026 and extended the existing security interest in favour of SNDL under the Amended Term Loan to the Minimum Purchase Commitment. The interest rate and other terms of the Amended Term Loan remain the same except for the addition of an event of default, whereby a default under the Supply Agreement (which if not cured by the applicable time period set out in the Supply Agreement) would constitute an event of default under the Amended Term Loan.

Events Subsequent to Quarter End

  • No Future products became available in stores across Ontario, including four gummy SKUs and three vape SKUs. The Company also received three additional No Future 1.2 gram vapes for listing with the OCS including Grape Ape Indica, Peach Punch Sativa and Pink Grapefruit Kush Indica. Additional SKUs accepted for listing which will hit shelves in Q4 in Ontario include, Pearls Peach Mango CBD 25-pack, Indiva 1432 chocolates in Milk 1:1 CBG/THC, Dark 1:1 CBN/THC and Cookies and Cream 1:1 THC/CBD flavours, Doppio Pumpkin Spice Latte Sandwich Cookie 1:1 CBD/THC, and Doppio Candy Cane Sandwich Cookie.
  • The Company received acceptance of three new No Future gummy SKUs for listing in Alberta, including the Red One, the Pink One, and the Yellow One, which are expected to be in market by late November. Additionally, the Company also received three additional No Future 1.2 gram vape listings in Alberta including Grape Ape Indica, Peach Punch Sativa and Pink Grapefruit Kush Indica.
  • Indiva completed its initial production and deliveries of Wana gummies to Canopy under the Supply Agreement signed in May 2023.

Market Share

  • Data from Hifyre Inc. for the third quarter of 2023 shows strong sell-through of Indiva's edible products. With 18.5% share of sales across British Columbia, Alberta, Saskatchewan, Manitoba, and Ontario, Indiva holds the No. 1 ranking SKU by sales and units sold in the Edibles category with Indiva’s Pearls by Grön gummies: Blue Razzleberry 3:1 CBG/THC. Further, product ranking in Q3 2023 showed three of the Top 10 edible SKUs are from Indiva’s Pearls by Grön gummies.
  • Due to the exclusion of sales of Wana for the entirety of the third quarter, INDIVA dropped to the #2 market share position in the edibles category on an aggregate basis for the three-month period. However, monthly data from September and October show that Indiva has regained and maintained the #1 market share position in the edibles category, driven by the introduction of No Future gummies and the continued growth in Pearls by Grön gummies. Further, in October, measured by unit sales, four of the top ten cannabis products across all categories at the OCS were Indiva products, including Pearls Blue Razzleberry, which was the highest volume SKU in Ontario.
  • Q3 2023 edibles market share:
    • Ontario: #1 with 23.1% market share.
    • Alberta: #4 with 14.4% market share.
    • British Columbia: #1 with 20.3% market share.
    • Saskatchewan: #8 with 4.1% market share.
    • Manitoba: #6 with 6.6% market share.
    • Gummies: Indiva’s Pearls by Grön gummies ranked as #2 in the edibles category with 12.8% share based on sales and ranked as #1 with 17.1% share based on units sold. Further, No Future gummies launched in late Q3 and already ranked #20 in the edibles category based on sales and ranked #15 based on units sold.
    • Chocolate: Indiva held 37.1% total sub-category share, as Bhang® continued to lead the chocolate category with 30.4% sub-category share.
    • Baked Goods: Indiva led the baked goods category with 65.7% sub-category share, driven by the success of Doppio Sandwich Cookies.
    • Based on data from British Columbia, Alberta, Ontario, Manitoba and Saskatchewan, the edibles category decreased by 7.8% in Q3 2023 to $61.9 million in retail sales from $67.2 million in Q2 2023, and increased by 6.5% versus $58.1 million in Q3 2022.


  • The Company expects Q4 2023 net revenue, excluding contract manufacturing, to improve sequentially driven by new product introduction, including our first full quarter of No Future sales across Canada. New SKUs coming to market include additional No Future gummies and vapes, Blips, as well as new 5-count and 25-count Pearls gummies. Gross margins are expected to continue to trend higher over time as the Company benefits from a mix shift to higher margin products and continues to achieve further production efficiencies driven by greater utilization of automation in production and packaging activities.


Three months ended

September 30

Nine months ended

September 30

(in thousands of $, except gross margin % and per share figures)





Gross revenue





Net revenue





Gross margin before impairments





Gross margin before impairments (%)





Loss and comprehensive loss





Adjusted EBITDA1





Net and comprehensive earnings per share – basic and diluted





1 See "Non-IFRS Measures", below.

Operating Expenses

Three months ended

September 30

Nine months ended

September 30

(in thousands of $)





General and administrative





Marketing and sales





Research and development





Share-based compensation





Expected credit loss (recovery)





Depreciation of property, plant, and equipment





Amortization of intangible assets





Total operating expenses





CONFERENCE CALL - Tuesday, November 21, 2023 at 10:30 a.m. (EST):

The Company will host a conference call to discuss its results on Tuesday, November 21, 2023 at 10:30 a.m. (EST). Interested participants can join by dialing 416-764-8658 or 1-888-886-7786. The conference ID is 45967367.

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 967367#. The recording will remain available until Thursday, December 21, 2023.


Indiva is proud to be Canada's #1 producer of cannabis edibles. We set the gold standard for quality and innovation with our award-winning products, across a wide range of brands including Pearls by Grön, Bhang Chocolate, Indiva Doppio Sandwich Cookies, Indiva 1432 Chocolate, and No Future Gummies and Vapes, as well as other Indiva branded extracts. Indiva manufactures its top-quality products in its state-of-the-art facility in London, Ontario, and has a corporate workforce remotely distributed across Canada. Click here to connect with Indiva on LinkedIn, Instagram, and here to find more information on the Company and its products.



Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) has in any way passed upon the merits of the contents of this news release and neither of the foregoing entities accepts responsibility for the adequacy or accuracy of this news release or has in any way approved or disapproved of the contents of this news release.

Certain statements contained in this news 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 news release contains forward-looking information relating to, among other things, (i) the Company's outlook for and expected operating margins and future financial results, including the Company's ability to achieve a sequential growth of net revenue and to achieve higher gross margins over time due to new product introduction, higher margin products and production efficiencies, (ii) the projected growth of its business and operations (including existing and new segments thereof), and the future business activities of, and developments related to, the Company within such segments after the date of this news release, including the anticipated introduction of new product offerings (iii) the Company's ability to capture and/or maintain its market share in any jurisdiction, (iv) the Company's ability to deliver on its commitments for existing or new listings of products, including scaling of existing products on a national basis, (v) the Company's ability to shift its revenue mix away from licensed products and towards products developed by the Company, (vi) the Company's ability to monetize any impaired saleable inventory, (vii) the Company's ability to introduce new planned SKUs and products to the market, and (viii) the proposed telephone conference call expected to be held by the Company on November 21, 2023. 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 Company, and include, without limitation, assumptions about the Company's future business objectives, goals, and capabilities, the cannabis market, the regulatory framework applicable to the Company and its operations, and the Company's financial resources. Although the Company believes that the assumptions underlying, and the expectations reflected in, forward-looking statements in this news release are reasonable, it can give no assurance that such expectations will prove to have been correct. A number of factors could cause actual events, performance or results to differ materially from what is projected in the forward-looking statements. Specifically, readers are cautioned that forward-looking statements involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of the Company, as applicable, to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements, including, but not limited to, risks and uncertainties related to: (i) the available funds of the Company and the anticipated use of such funds, (ii) the availability of financing opportunities, (iii) legal and regulatory risks inherent in the cannabis industry, (iv) risks associated with economic conditions, (v) dependence on management, (vi) public opinion and perception of the cannabis industry, (vii) risks related to contracts with third-party service providers, (vii) risks related to the enforceability of contracts, (viii) reliance on the expertise and judgment of senior management of the Company, and ability to retain such senior management, (ix) risks related to proprietary intellectual property and potential infringement by third-parties, (x) risks relating to the management of growth and/or increasing competition in the industry, (xi) risks associated to cannabis products manufactured for human consumption, including potential product recalls, (xii) risks related to the economy generally, and (xiii) risk of litigation.

The forward-looking information contained in this news release is made as of the date hereof and the Company is not obligated to, and does not undertake 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 inherent in forward-looking information, investors should not place undue reliance on forward looking information. The foregoing statements expressly qualify any forward-looking information contained herein.

This news release contains future-oriented financial information and financial outlook information (collectively, "FOFI") about the Company's prospective results of operations, which are subject to the same assumptions, risk factors, limitations, and qualifications as set out in the above paragraph. FOFI contained in this news release was approved by management as of the date of this news release and was provided for the purpose of providing further information about the Company's future business operations. The Company disclaims any intention or obligation to update or revise any FOFI contained in this news release, whether as a result of new information, future events or otherwise, unless required pursuant to applicable law. Readers are cautioned that the FOFI contained in this document should not be used for purposes other than for which it is disclosed herein.

Non-IFRS Measures

This news release makes reference to certain non-IFRS measures. These measures are not recognized measures under IFRS, do not have a standardized meaning prescribed by IFRS, and are therefore unlikely to be comparable to similar measures presented by other companies. Rather, these measures are provided as additional information to complement those IFRS measures by providing further understanding of our results of operations from management's perspective. Accordingly, these measures should not be considered in isolation nor as a substitute for analysis of our financial information reported under IFRS.

The non-IFRS measure used in this news release includes "Adjusted EBITDA". 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, 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. Management believes that Adjusted EBITDA provides useful information to investors as it is an important indicator of an issuer's ability to generate liquidity through cash flow from operating activities and equity accounted investees. Adjusted EBITDA is also used by investors and analysts for assessing financial performance and for the purpose of valuing an issuer, including calculating financial and leverage ratios. The most directly comparable financial measure that is disclosed in the financial statements of the Company to which the non-IFRS measure relates is income (loss) from operations.



Anthony Simone

Phone: 416-881-5154


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