Namaste Technologies sees its 2Q gross margins improve on increased higher margin product sales

Namaste Technologies Inc (TSX-V:N, OTCQB:NXTTF) has announced an improvement in its second-quarter 2021 gross margins before inventory adjustments, its third consecutive quarterly increase, on greater sales of higher margin products. The company generated C$6.3 million in gross revenue for the quarter, 52% of which was derived from cannabis sales that increased 18% year over year.  “We are very pleased with the accomplishments we have made on the operating front which include increased margins over the last three quarters as well as an improvement in EBITDA within all our operating segments,” Namaste Technologies CEO Meni Morim said in a statement. READ: Namaste Technologies says subsidiary CannMart signs Master Distribution Agreement with Rapid Dose Therapeutics “We continue to be focused on controlling our operating expenses, improving gross margins and selling the right product mix to position Namaste on a clear path and trajectory towards profitability,” Morim added. Namaste also noted that its operating expenses for the six-month period fell by 15% from the comparable period in 2020, resulting in a 33% improvement in the company’s overall earnings before interest, taxes, depreciation, and amortization (EBITDA). The company ended the quarter with working capital of C$25 million as of May 31, 2021. As well, Namaste said stock keeping unit (SKU) listings at its wholly-owned CannMart.com subsidiary surged 589% year over year to more than 800 at the end of 2Q, as CannMart received a record amount of requests from vendors across North America to list their products onto the CannMart.com platform. Namaste Technologies is a cannabis-focused, e-commerce technology company with the goal of becoming the one-stop-shop for everything a cannabis user needs. The Toronto-based company, which has been described as the “Amazon of cannabis,” operates the largest global cannabis e-commerce platform with over 30 websites in more than 20 countries under a variety of brands.  In addition to its product offerings of vaporizers, glassware, accessories, and CBD products, the company's CannMart Inc, is a key part of its operations that sells online medical and recreational cannabis. Contact Sean at sean@proactiveinvestors.com