Indiva's Profits Tighten as CEO Calls For Higher THC Edibles Potency Limits

For the full fiscal year, Indiva reported a 6.8% rise in net revenue.

Canadian cannabis edibles producer Indiva Limited (TSE: NDVA) announced its financial and operational results for the fourth quarter and fiscal year 2022, revealing mixed results as the company navigates industry challenges.

Fourth-Quarter Results

Indiva generated $10.3 million in gross revenue in the fourth quarter, a 17.1% sequential increase from the third quarter, but slightly lower than 2021’s fourth quarter.

Net revenue reached $9.3 million, a 15% increase sequentially and a marginal 0.7% stalemate year-over-year. Edible product sales dropped versus last year, accounting for 80.6% of net revenue in the fourth quarter.

The company attributed the slump to delays in the delivery of automated processing equipment and a shift toward products with higher average cannabinoid content per unit and lower gross margin.

The company had a net loss that included one-time expenses and non-cash charges, like inventory losses and debt modification, totaling $500,000 in the fourth quarter, versus $1.5 million in the same period the previous year.

Excluding these charges, the net loss fell to $2.4 million in the fourth quarter of 2022 versus a loss of $2.7 million for the same time period in 2021.

Gross profit before adjustments and one-time items totaled $2.7 million (29.3% of net revenue), down from 2021.

Indiva anticipates that margins will improve in the first quarter of this year following the implementation of new automation equipment.

The company sold a record 81.8 million milligrams of cannabinoids in the fourth quarter, a significant increase sequentially as well as over last year’s fourth quarter. However, it experienced a $600,000 adjusted EBITDA loss in the fourth quarter, similar to the loss in the fourth quarter of 2021.

Full-Year Results

For the full fiscal year, Indiva reported a 6.3% year-over-year rise in gross revenue and a 6.8% increase in net revenue. The company sold products containing 237.1 million milligrams of cannabinoids, a 28.5% rise from 2021.

For the entire fiscal year 2022, the net loss, excluding one-time expenses and non-cash charges, went up to $8.6 million, versus a loss of $5.4 million in the fiscal year 2021.

In 2022, Indiva introduced several new products under the Indiva Life brand, expanded distribution across Canada, and signed an exclusive agreement with Dime Industries for vape products.

The company also commissioned new automated equipment in the quarter, which is expected to improve margins in the first quarter.

Indiva maintains a significant market share in the Canadian cannabis edibles industry, with a strong performance in provinces such as Ontario, Alberta, and British Columbia.

Indiva’s president and CEO, Niel Marotta, highlighted the company’s distribution across all 13 provinces and territories in Canada, as well as partnerships with multiple medical providers such as its recent agreement with Tilray.

New Products

He noted that while Indiva has benefited from successful licensing deals with brands like Wana Sour Gummies, Bhang Chocolate, Pearls by Grön, and Dime Industries, the focus is shifting toward innovation.

In 2022, Indiva introduced new in-house products under the Indiva Life brand, including lozenges, chocolates, capsules, and sandwich cookies.

The company said it plans to continue innovating and launching new products in 2023, leveraging its national distribution platform, low-cost production of edibles, and market share leadership.

Marotta also mentioned advocating for regulatory reform to allow higher THC potency per package in edibles.

“Indiva remains committed to bringing best-in-class products that delight of-age Canadian cannabis enthusiasts and patients coast-to-coast,” he said.

Adam Jackson

Adam Jackson writes about the cannabis industry for the Green Market Report. He previously covered the Missouri Statehouse for the Columbia Missourian and has written for the Missouri Independent. He most recently covered retail, restaurants and other consumer companies for Bloomberg Business News. You can find him on Twitter at @adam_sjackson and email him at

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