Namaste Reports Q1 Results: What Cannabis Stock Investors Need To Know

Namaste Technologies Inc. N NXTTF, a cannabis-focused e-commerce company, reported Wednesday that its gross revenue grew by 13% year-over-year to CA$6.15 million ($4.96 million) in the first quarter of 2021.

Net revenue for the first three months of the fiscal year amounted to CA$5.5 million, compared to CA$5.3 million in the same quarter of 2020, and CA$7.2 million in the prior quarter.

Here’s a breakdown of what the first-quarter earnings report showed:

• Cannabis revenue spiked 113% year-over-year, accounting for 47% of total net revenues.
• Operating expenses declined by CA$7.5 million over the same period, to CA$2.5 million.
• Inventories dropped by 33% to CA$5.9 million, from CA$8.8 million in the corresponding quarter of last year.
• Accounts receivables decreased as well, by 22% year-over-year.
• As of February 28, the company had CA$31 million in working capital, including CA$23 million it raised through a recently-closed bought deal public offering of 65.78 million of its units at CA$0.35 per unit.

In November, the Toronto-based company said it was purchasing the remaining interest (49%) in its subsidiary CannMart Labs.

Namaste recently expanded its offering on its CannMart.com platform, adding products from Auxly Cannabis Group Inc. CBWTF, HEXO Corp. HEXO HEXO and The Green Organic Dutchman Holdings Ltd TGODF.

“We continue to transform CannMart.com, which saw sales increase in Q1 2021 compared to the prior year as we see an increased number of vendors looking to sell their cannabis and accessories with us,” Meni Morim, CEO of Namaste, said.

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Photo by Esteban Lopez on Unsplash