Where Does Namaste Technologies Go From Here?

Last week, Namaste Technologies Inc. (N.V) (NXTTFreleased second-quarter financial results for the period that ended on May 31st and we were impressed with how it was able to grow revenues on a quarter-over-quarter basis.

When compared to the prior quarter, Namaste recorded an improvement in second-quarter revenue, gross margin, and the net loss. The company continues to execute on previously announced initiatives, and we are favorable on the performance of the business during the toughest months of the COVID pandemic.

The most attractive aspect of the Namaste story is related to CannMart, which is a wholly-owned subsidiary of the business. CannMart continues to execute on a strategy to attract premium brands, value-added suppliers, and provincial agencies. Much of the success can be attributed to its expertise in e-commerce, production, packaging, and distribution, and we are bullish on the growth prospects that are associated with the subsidiary.

During the second quarter, CannMart’s expanded product catalogue grew in both its business to business (B2B) and business to consumer (B2C) channels and this is a trend that we are bullish on. CannMart continues to put a major emphasis on strengthening its competitive position in the Canadian cannabis industry as the market matures and shifts into consumer-packaged-goods (CPG).

Namaste is led by a management team that has a proven track record of success working in the CPG market. We believe that the team is focused on bringing the business down a path to profitability and will be monitoring how it continues to execute on this. Going forward, we expect to see a continued focus on building a leading Canadian cannabis company and believe that the market underappreciates the potential that is associated with this.

During the quarter, Namaste reported to have generated $6.9 million of revenue and this represents a more than 70% increase over the same period last year. CannMart accounted for more than $2.4 million of the quarterly revenue and we expect this vertical to continue to record impressive growth on a going-forward basis.

1 2
View single page >> |

Disclosure: This report was authored by and is property of Technical420. All information and data relied upon in drafting this report is publicly available. The author believes and considers its ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.