Marijuana Stocks: 3 Key Takeaways From CannTrust’s Earnings

CannTrust Holdings (NYSE:CTST) hopes to become one of Canada’s biggest and lowest-cost marijuana producers, and this week, it unveiled first-quarter financials that show it’s making progress toward its goal. The company’s harvest surged because of expansion projects, and strong medical marijuana sales more than offset a sequential slowing of recreational market sales. Can CannTrust Holdings’ success continue? Here are three important takeaways from its first-quarter financial report.

1. Sales growth is blistering but slowing

CannTrust is a major medical marijuana player with 68,000 active registered medical marijuana customers, up from 58,000 exiting December. It’s also generating substantial sales from Canada’s recreational market, which opened last October.

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Medical and recreational sales comprised 67% and 33% of the company’s 16.9 million Canadian dollars in revenue in Q1, respectively. Overall, it sold about 3,000 kilograms of cannabis in the quarter, up 200% from last year.

Although revenue increased

... read more at: https://www.fool.com/investing/2019/05/15/marijuana-stocks-3-key-takeaways-from-canntrusts-e.aspx

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