Indiva Posts Q1 Results, Reports 690% Revenue Spike

Cannabis retailer Indiva Ltd. (TSXV: NDVA) (OTCQX: NDVAF) reported record revenue of CA$2.3 million (US$1.7 million) during the first quarter of 2020.

That’s an increase of 690% compared to the same period last year.

According to the company's latest earnings report, the revenue increase is mainly due to new SKUs in the edibles and extracts sectors, and a decline in operating expenses.

Here’s a breakdown of what the first quarter finance report revealed:

• Net revenue increased sequentially by 522% reaching CA$2 million
• Negative gross margin of CA$217,696 versus a negative gross margin of CA$85,013 during the first quarter of 2019
• Operating expenses have decreased by 44% year-over-year, falling to CA$1.79 million 
• Negative adjusted EBITDA of approximately CA$2million versus a negative adjusted EBITDA of CA$3 million in the first quarter of last year
• Net and comprehensive loss of roughly CA$2.4 million, down by 33% compared to the corresponding quarter of 2019
• Bhang Milk and Dark Chocolate were the top two SKUs among the Ontario Cannabis Store’s edibles sector (by both dollars and unit sales)
• Bhang Chocolate sales amounted CA$1.6 million, net of excise taxes

The London, Ontario-based company said Bhang Milk Chocolate had topped the list of SKUs measured by dollars and units in the province, beating other edibles, pre-rolls, and capsules.

Indiva, which expanded its distribution network to five new provinces, says sales in March net of excise generated around $1.4 million. 

“After receiving our edibles, extracts, and topicals license on January 31, 2020, the Company delivered its 2.0 products to market within days,” Indiva President and CEO Niel Marotta said. “With multiple top-tier products in the market, we are looking forward to capitalizing on our success and earning more consumers’ loyalty by delivering new, innovative products, like Wana Sour Gummies, in 2020."