Cann Group's losses more than doubled during the first half of the 2023 financial year, with administration, corporate, and R&D expenses all rising significantly over the period.
The company recorded an operating loss after tax of A$18.84 million, compared to $8.3m in the same period a year earlier.
On a brighter note, revenue grew 83% to $5.8m, with domestic sales the primary driver of that increase.
Despite the widening losses, Cann chief executive Peter Koetsier said the company was making "positive progress" in its aim to optimise production efficiencies at Mildura and "building confidence with our customers around the supply of quality medicinal cannabis products in the volume they require".
"Sales in the December quarter showed strong growth and I expect to be able to build on that growth over the balance of the financial year," he said. "As we continue to scale up production and secure production efficiencies, this will be reflected in improved margins."
Early discussions with customers suggest the company has the "opportunity to grow market share in a market that is continuing to expand", he added.
"Our focus is on continuing to streamline operations to secure those scale-based efficiencies and to build profitable revenue."
Over the half-year period, administration and corporate costs came to nearly $17m, up from $11.5m, while R&D expenditure rose from $974,000 to $2.6m. Depreciation and amortisation costs also weighed on results, climbing to $6m from $1.2m.
Separately, the complete data from its phase III clinical trial examining CBD as a treatment for insomnia will be "reviewed closely" by Cann and Haleon, the consumer healthcare arm of GlaxoSmithKline (GSK).
Haleon has 60 days after receiving the final report to decide if it intends to commercialise Satipharm, Cann Group's over-the-counter CBD candidate.
While trial participants experienced some benefits from Satipharm, those improvements were not meaningfully greater than those seen in the placebo group.
Koetsier said last month that Cann Group had not abandoned its pursuit of an over-the-counter product to address sleep disturbance.
