U.S. Markets closed

Namaste announces Q4 2018 quarterly financials

VANCOUVER , Oct. 30, 2018 /CNW/ - Namaste Technologies Inc. ("Namaste" or the "Company") (CSE:N.V), (M5BQ.F), (NXTTF) is pleased to announce the filing of its unaudited quarterly financial statements, management's discussion and analysis and certification of the quarterly filings for the fourth quarter of fiscal 2018. The statements for the period can be accessed on the Company's SEDAR profile at www.sedar.com.

Namaste Technologies Inc. (CNW Group/Namaste Technologies Inc.)

Namaste's net revenue for the three months ended August 31, 2018 was $3.9 million , which is comparable to $3.9 million within the same period in 2017. On a year over year basis, Namaste's net revenue for the twelve months ended August 31, 2018 was $18.6 million (an increase of $7.6 million or 69%) compared to the twelve months ended August 31, 2017 . The increase in net revenue during the twelve months ended August 31, 2018 was primarily due to organic growth within the key markets such as United Kingdom , Canada , Brazil , Germany and full twelve months of revenue from Australian Vaporizers which was acquired in March 2017 .

Key Financial Highlights:

  • Q4-2018 revenue was consistent to Q4-2017 despite divestiture of the U.S. revenue
  • Without the impact of inventory provision taken in Q4-2017, gross profit for Q4-2018 was an improvement of $631K comparing Q4-2018 against Q4-2017. This resulted from better cost controls during the quarter.
  • Australia Q4-2018 revenue increase by approximately 3% compared to Q4-2017 without the impact of foreign exchange.
  • Revenue from Brazil increased by 151% comparing Q4-2018 against Q4-2017
  • Revenue from Canada increased by 196% comparing Q4-2018 against Q4-2017


The majority of the revenue was generated by several key markets. For the three and twelve months ended August 31, 2018 , the top five revenue earning countries generated 85% and 84% of revenue, respectively. For the three and twelve months ended August 31, 2017 , the top five revenue-earning countries generated 86% and 84% of revenue, respectively.

For the twelve months ended August 31, 2018 , Namaste showed an impressive growth of 364% in the Canadian market, 261% in Germany , 188% in Brazil , 98% in Australia , 45% in the United Kingdom . These changes are consistent with Namaste's long terms business strategy to expand in European and emerging markets with an increased focus in the Canadian market.

The following table outlines gross revenue by country;

Revenues by Country






Three months ended August 31

Twelve months ended August 31


2018

2017

2018

2017

Australia

1,171,595

1,360,442

5,113,522

2,578,325

United Kingdom

1,076,564

1,237,394

4,824,743

3,332,578

Canada

562,464

190,136

2,165,692

467,122

US (Findify)

112,173

425,167

1,935,017

2,308,530

Brazil

382,379

152,203

1,502,169

521,126

Germany

134,500

106,255

889,238

246,541

New Zealand

78,113

108,772

340,230

397,556

Ireland

80,802

73,346

324,915

216,608

Israel

9,732

88,741

126,182

193,381

Other

323,828

153,459

1,339,603

719,647


3,934,150

3,895,915

18,561,311

10,981,414

 

With the launch of Cannmart, the Company anticipates increasing revenue through Cannabis sales and in developing further supply agreements with domestic licensed producers to expand its product offering. The Company will look to implement similar platforms in other markets where the company maintains a strong presence.

On September 13 th, 2018, the Company signed a binding terms sheet to Acquire UK-Based Licensed Pharmaceutical Distribution Company AF Trading Ltd. Access Fulfillment operates a 30,000 square-foot distribution facility in the UK and holds a Wholesale Distribution Authorization (Human) License issued by the Medicines and Healthcare Products Regulatory Agency ("MHRA") which allows Access Fulfillment to distribute pharmaceutical products throughout the UK.

The Company is working to close on the acquisition and is focused on launching medical cannabis sales through its platform in the UK, which represents a much larger customer base than that of its Canadian operations.

Management Commentary

Sean Dollinger , President and CEO of Namaste comments: "We are pleased to have filed Q4, 2018 financials. With the completion of our bought-deal financing and our current cash position, the Company is well-positioned for future growth. We are now focused on increasing revenue through Cannmart and in launching medical cannabis sales in to the UK market."

About Namaste Technologies Inc.

Namaste Technologies is Your Everything Cannabis Store™. Namaste operates the largest global cannabis e-commerce platform with over 30 websites in 20+ countries under various brands. Namaste's product offering through its subsidiaries includes vaporizers, glassware, accessories, CBD products, and the company will soon be selling medical cannabis in the Canadian market.

Namaste has developed and acquired innovative technology platforms including NamasteMD.com, Canada's first Health Canada compliant telemedicine application, and in May 2018 the Company acquired a leading e-commerce AI and Machine Learning Company, Findify AB. Findify uses artificial intelligence algorithms to optimize and personalize a consumer's on-site buying experience. Namaste is focused on leveraging its cutting-edge technology to enhance the user experience throughout its platforms. Namaste will continue to develop and acquire innovative technologies which will provide value to the Company and to its shareholders as well as to the broader cannabis market.

On behalf of the Board of Directors

"Sean Dollinger"
Chief Executive Officer
Direct: +1 (250) 300-5103
Email: IR@namastetechnologies.com

Further information on the Company and its products can be accessed through the links below:
NamasteTechnologies.com
NamasteMD.com
NamasteVapes.ca
Everyonedoesit.ca

Forward Looking Information

This press release contains forward-looking information based on current expectations. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Although such statements are based on management's reasonable assumptions. The Company assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances unless required by law. Although the Company believes that the expectations and assumptions on which the forward-looking statements are based are reasonable, undue reliance should not be placed on the forward-looking statements because the Company can give no assurance that they will prove to be correct. Since forward-looking statements address future events and conditions, by their very nature they involve inherent risks and uncertainties. These statements speak only as of the date of this press release. Actual results could differ materially from those currently anticipated due to a number of factors and risks including various risk factors discussed in the Company's disclosure documents which can be found under the Company's profile on www.sedar.com.

This press release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The CSE has neither reviewed nor approved the contents of this press release.


SOURCE Namaste Technologies Inc.


View original content to download multimedia: http://www.newswire.ca/en/releases/archive/October2018/30/c8719.html