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.
The company’s net income increased to CA$12.8 million in the first quarter from CA$11.4 million a year earlier.
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.