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Namaste Posts Q2 Results, Cann Mart's Revenue Spikes 1500% YoY

July 24, 2020 1:49 pm
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Namaste Posts Q2 Results, Cann Mart's Revenue Spikes 1500% YoY

Cannabis e-commerce company Namaste Technologies Inc. (TSXV:N) (OTCQB: NXTTF) disclosed that the net segment revenue for CannMart, its wholly-owned subsidiary, spiked around 1500% year-over-year to CA$2.4 million (US$1.8 million).

Compared to the previous quarter, CannMart's revenue increased by 82%, the company said Friday.

The Toronto-based company also reported its overall net revenue amounted to CA$6.9 million in the second quarter of fiscal 2020, up by 73% compared to the same quarter last year.

Namaste's CEO Meni Morim noted that an increase in revenue could be attributed to the "introduction of B2B distribution channels by CannMart."

"We have shown that we can grow our revenue and as we expand our product lines, improve operational efficiencies, and increase our gross margins in coming quarters to coincide with revenue growth," continued Morim.

According to the company's recent update, CannMart boosted Namaste's revenue by almost 800% year-over-year.

Other quarterly highlights from the earnings report include:

  • Net loss of CA$4.8 million compared to CA$8.6 million in the second quarter of 2019
  • Negative adjusted EBITDA of CA$4.7 million versus a loss of CA$3.9 million in the corresponding quarter of last year
  • Overall expenses declined by 4% year-over-year 
  • Gross margin of 9% in comparison to a gross margin of 18% in the previous period

Last month, IGNITE International Brands, Ltd. (CSE:BILZ) (OTCQX: BILZF) provided CannMart with a license to distribute IGNITE products in Canada.

In addition, Namaste obtained all regulatory approvals to begin offering Cannabis 2.0 products in Alberta and Ontario.

"The Cannabis 2.0 market is gaining momentum as new and innovative products are being introduced," added Morim.

Courtesy photo

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