Indiva Limited

Indiva reported first-quarter 2024 gross revenue of $10.6 million, up 2.6% year over year, and net revenue of $9.3 million, down 0.9%. Gross profit increased 18% to $2.8 million, with gross margin at 30% versus 25% in Q1 2023. Adjusted EBITDA was a profit of $120,000, compared with a profit of $415,000 a year ago. Comprehensive net loss was $1.8 million, improved from a loss of $2.3 million in Q1 2023; excluding one-time and noncash charges, the loss was $1.6 million versus $1.3 million. For Q2, management said April net revenue reached a record $4.3 million and that year-to-date revenue through April and May was already ahead of the $7.5 million achieved in Q2 2023. They said they expect Q2 net revenue to be higher year over year and sequentially, with improved margins, and remain on track for record net revenue and margins for full-year 2024.

Neil Marotta emphasized resilience after a year-over-year net revenue decline tied largely to external issues, including the loss of Lozenges revenue and the transition of Wana to contract manufacturing. He highlighted that more than 30% of net revenue came from in-house brands and pointed to strong growth in Pearls and No Future as the main offset to those headwinds. His tone was notably upbeat, saying Indiva’s business has “never been stronger” and pointing to record April revenue and positive net income in the month.

Jennifer Welsh provided the core financials: gross revenue of $10.6 million, net revenue of $9.3 million, gross profit of $2.8 million, adjusted EBITDA of $120,000, and a quarter-end cash balance of $3 million. She said gross profit benefited from lower inventory impairments and a positive mix impact, with impairment charges of just $17,000, described as a record low. Operating expenses were flat year over year at $3.2 million, and she noted comprehensive net loss improved to $1.8 million from $2.3 million in Q1 2023, though adjusted for certain charges the loss was $1.6 million versus $1.3 million last year.

There was no substantive analyst Q&A in the transcript. The main follow-up items management addressed were the loan amendment and repayment of $2 million of principal, which removed the covenant requiring a minimum $2 million unrestricted cash balance, and the retention of SSC advisers to evaluate strategic alternatives. Management said they would not provide further updates on that process for now and would comment again when appropriate.