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.
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