Indiva Limited (TSXV: NDVA) (OTCQX: NDVAF)’s revenue declined this quarter but says it expects to increase it after introducing new products to the market.
On Thursday, the leading Canadian producer of edibles announced its financial results for the first fiscal quarter ended March 31 and reported net revenue of $8.9 million, which is a 5.4 per cent decrease from the last quarter.
The results are driven primarily by the company’s edibles including Wana Sour Gummies and Bhang Chocolate products.
Operating expenses totalled $3.5 million which is a 14 per cent decrease from the last quarter.
Adjusted earnings before interest, taxes and depreciation improved sequentially in the first quarter of 2022 to a loss of $330,000 from a loss of $490,000 in the previous quarter.
The company saw some impairment charges in the quarter totalling $850,000 that included a write-off of aged finished goods, bulk cannabis and packaging for contract manufacturing arrangements no longer in place, offset by a recovery on oil-based products which continue to sell.
During the quarter, Indiva launched its Wana Quick Midnight Berry launched in Ontario, BC and Alberta, and experienced strong sell-in, quickly becoming one of the most popular CBN products in the country.
The company has the number one market share position in the edibles category.
Indiva stock went up on Friday by 2.13 per cent to $0.24 on the Canadian Ventures Exchange.
CEO Neil Marotta said in a statement they had 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,” he added.
“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.
The company will add a new gummies line called Grön Pearl gummies as well as Grön Pips candy-coated chocolates and Dime Industries vapes. The new edible and extracts products are to be listed under our new in-house consumer brand Indiva Life.