Canadian cannabis producer Tilray (TSX:TLRY) has reported a 43% rise in its fiscal first-quarter revenue, driven by strong demand for the recreational drug following COVID-19 lockdowns.
The world's largest cannabis producer by sales said its revenue rose to $168 million in the quarter ended August 31 from $117.49 million a year earlier. Net cannabis revenue jumped 38%.
Cannabis products saw a big rise in popularity this year as people turned to it for relaxation during the months-long isolation caused by COVID-19, lifting sales of most cannabis producers.
The company said it was on track for at least $80 million in cost savings from its merger earlier this year with Aphria. Tilray added that it had saved about $55 million on a run rate basis to date from the Aphria deal, with actual cash savings close to $20 million.
Despite its improving financial situation, Tilray's net loss widened to $34.6 million in its fiscal first quarter from $21.74 million, as total expenses more than doubled.
