(Reuters) – Canadian pot producer Tilray Inc on Thursday reported a 43% rise in first-quarter revenue, driven by strong demand for cannabis after coronavirus-led lockdowns.
The world’s largest cannabis producer by sales said its revenue rose to $168 million in the quarter ended Aug. 31 from $117.49 million a year earlier. Net cannabis revenue jumped 38%.
Cannabis products saw a massive rise in popularity this year as more people turned to it for relaxation during the months-long isolation caused by COVID-19, lifting sales of pot producers.
The company said it was on track for at least $80 million in cost savings from its deal to merge with Aphria.
Tilray, which announced the deal in December, added that it had saved about $55 million on a run-rate basis to date from the deal, with actual cash savings close to $20 million.
Tilray’s net loss widened to $34.6 million in the first quarter from $21.74 million, as total expenses more than doubled.
(Reporting by Sahil Shaw in Bengaluru; Editing by Maju Samuel)
