Adam JacksonJones Soda Co. (OTC: JSDA) reported a slight decrease in overall revenue for the fourth quarter, but its infused beverage category saw solid gains for the period.
The Seattle-based soda manufacturer reported its financial results for the fourth quarter and full year ended Dec. 31, 2023.
Fourth-quarter revenue fell to $3.5 million from $3.7 million during the same period the previous year. The overall dip, however, was partially offset by the performance of its Mary Jones cannabis segment, which saw revenue rise to $438,000, up from around $239,000 a year ago.
“We experienced headwinds in our foodservice and grocery channels from a revenue perspective, and our gross margins were negatively impacted by a one-time inventory write-off, which led to less-than-ideal top-line financial results to close out the year,” president and CEO David Knight said in a statement. “However, I believe we continued to make progress towards positioning Jones Soda for exciting long-term growth opportunities.”
Knight added that the company continues to expand the markets in which it sells Mary Jones and has also added new products to bolster the category’s growth.
“We maintained strict cost discipline with our operating expenses, which allowed us to reduce our net loss,” he said.
Full-year results
Over the full year, Jones Soda saw a decline in total revenue, from $19.1 million in 2022 to $16.7 million in 2023.
However, the company’s efforts to streamline were evident in the improved gross profit margin, which rose to 29.1% from 26.9% year-over-year.
Despite the lower revenue, the net loss for the company showed improvement, falling from $6.4 million in 2022 to $4.9 million in 2023.
Jones Soda is trying to expand its product lines and enter new markets, with initiatives like its ready-to-drink alcoholic beverages and a collboration with Amazon Prime Video and Bethesda Game Studios on a special edition Nuka Cola for a TV series based and named after the popular post-apocalyptic Fallout video games series.
“We see ample growth opportunities for our core soda business, our Mary Jones business, and extensions into adjacent beverage categories as we transition to a beverage company,” Knight said.
“Mary Jones has continued to expand its product offerings with the introduction of hemp delta-9 and expanded internationally into the Canadian regulated market.”
The firm announced several partnerships aimed at expanding distribution and sales channels, including a new food service division and enhanced distribution in Canada.
The company also faced challenges like lower sales in certain channels and a one-time financial hit from unsold inventory. But management is optimistic about future growth based on new product launches and strategic partnerships.
