Ontario, Canada-based CannTrust Holdings reported that first-quarter revenue more than doubled from a year earlier, mostly on the back of rising medical marijuana sales, while the company’s net income inched higher. Adult-use sales, however, struggled.
First-quarter revenue jumped 115% from a year earlier to 16.9 million Canadian dollars ($12.6 million), thanks to strength in the company’s MMJ business. CannTrust said its active patient count reached 68,000 as of March 31, a 70% increase over the first quarter of 2018.
However, CannTrust reported lower net revenue from wholesale cannabis in the first quarter – the company’s first full financial quarter of recreational sales – as Canada’s federal license holders continue to struggle to turn a profit selling legal recreational marijuana.
Wholesale net revenue – primarily reflecting sales to provinces for the adult-use market – fell in the January-March period to $CA5.5 million from CA$6.5 million in the fourth quarter of 2018.
Canada legalized recreational marijuana on Oct. 17, 2018.
CannTrust shares trade as CTST on the New York Stock Exchange and as TRST on the Toronto Stock Exchange.