Canadian licensed cannabis producer Indiva experienced a substantial climb in net revenue in the April-June quarter that stemmed, in large part, from growing sales of edible products.
The Ottawa, Ontario-headquartered company reported net revenue of 9.1 million Canadian dollars ($7.2 million) for the period, up 209% year-over-year and 46% over the previous quarter.
Cannabis edibles were the main driver of sales.
Edibles sales in the latest quarter amounted to CA$8.4 million, accounting for 93% of Indiva’s revenue.
That is 52% higher than the previous quarter’s edibles sales of CA$5.53 million and 445% higher than the comparable period last year.
The company also reported positive adjusted EBITDA, a measure of profitability, of CA$544,000.
Net loss for the quarter was CA$1.42 million, which includes one-time expenses and noncash charges worth CA$1 million, according to the company’s second quarter financial results.
“Becoming a top 10 ranked LP nationally by dollar share and top three measured by units, and doing so by driving organic growth rather than through acquisition, is a testament to the talent, dedication and hard work of the entire Indiva team,” the company’s CEO, Niel Marotta, said in a statement.
Marotta expects Indiva to experience continued growth through the second half.
Countrywide, Canadians purchased CA$109 million worth of recreational cannabis edibles in 2020, the first full year they were available, per Statistics Canada data.
Indiva said it held the No. 1 market position for edibles in Alberta, British Columbia, Ontario, Manitoba and Saskatchewan, citing data from analytics firm Hifyre.
The Ottawa company has utilized partnerships with U.S.-based firms to bring established cannabis brands to Canada.
One such arrangement is with Las Vegas-based Bhang, which gives Indiva exclusive rights to make and sell Bhang’s products north of the border. The arrangement also gives the Canadian LP the right to export those products overseas in medical channels.
Indiva also has an agreement with Colorado-based Wana Brands, one of the largest U.S. edibles makers, giving the Canadian company exclusive rights to produce and distribute Wana products in Canada.
In February, the license agreement was extended to a five-year term.
Indiva is one of the smaller, more focused cannabis companies in Canada to experience steady growth, while the largest companies have been flat or continue to decline.
Indiva ended the quarter with a cash balance of CA$3.4 million.
Its shares trade on the TSX Venture exchange as NDVA.