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Indiva Limited (OTCQX:NDVAF) (TSXV:NDVA) net revenue in Q3 2022 was CA$8.1 million ($6 million), representing a 0.4% sequential decrease from Q2 2022, and a 5.5% increase year-over-year from Q3 2021.
Q3 2022 Financial Highlights
Gross profit before fair value adjustments, impairments and one-time items declined year-over-year and sequentially, to CA$2.3 million, or 28.9% of net revenue, versus 33.1% in Q2 2022 and 34.5% in Q3 2021.
Adjusted EBITDA declined sequentially in Q3 2022 to a loss of CA$500,000, versus a loss of CA$150,000 in Q2 2022, and declined versus a profit of CA$130,000 in Q3 2021.
Comprehensive net loss of CA$2.6 million included one-time expenses and non-cash charges for impairment of inventory totaling CA$400,000. Excluding these charges, comprehensive loss increased to CA$2.2 million versus an adjusted loss of CA$2.0 million in Q2 2022 and CA$1.0 million in Q3 2021.
Cash balance improved to CA$3.6 million at quarter-end.
“We are pleased to report year-over-year growth and record net revenue year-to-date, driven by the successful launch of several new products and brands into the Canadian market in Q3 2022, including Indiva Life Double Stuffed Sandwich Cookies, Indiva Life Lozenges, Dime vapes and Pearls by Grön gummies, which have quickly become one of the top edibles brands in market. Indiva is transitioning from relying on licensed brands, which Indiva will continue to support with its best efforts, towards focusing on innovation at its core, in order to drive future growth,” stated Niel Marotta, president and CEO of Indiva.
Outlook
Based on the strength of purchase orders received to date in the fourth quarter, the company expects Q4 2022 net revenue to be higher sequentially and year-over-year driven primarily by new product introductions, including Pearls gummies, Dime Industries vape products, as well as new Indiva Life branded products such as lozenges and sandwich cookies.
Margins are expected to improve going forward due to fixed cost leverage and the commissioning and implementation of automation in the production, processing and packaging of edible products.
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