CannTrust Holdings (CTST) - Get Report , a maker and distributor of medical cannabis products in Canada, posted a fourth-quarter loss of 26 cents a Canadian share, much wider than analysts' expectations that called for a loss of 4 cents, and a swing from a year-earlier profit of 8 cents a share.
Revenue rose to C$16.2 million in the quarter from C$7 million a year earlier. Analysts expected revenue of C$20.3 million. Revenue was boosted by increased sales volumes from continued growth in the company's medical patient base and sales derived from the recreational market in Canada.
The company said it sold 3,407 kilograms of dried cannabis equivalent in the fourth quarter, an increase from 758 kg in the fourth quarter of 2017, while cash costs per gram decreased to C$2.94 from C$5.16.
The stock tumbled 14% to $8.63 in trading Thursday.
"The CannTrust team has delivered remarkable growth in the fourth quarter of 2018. We achieved record sales volume, record revenue and our medical patient count continues to increase, reflecting the quality of our products and customer service," said CEO Peter Aceto in a press release.
Aceto said the company expects the "trajectory of revenue growth to continue in 2019 as we bring additional capacity online through our Phase 2 expansion, realize the potential of investments we have made into training and crop yield optimization, implement targeted price increases and distribute our products to more and more consumers."
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