Adam JacksonJones Soda Co. (OTCQB: JSDA) reported its financials for the first quarter ending March 31, which included a 29% rise in revenue versus the same period last year. The Seattle-based company’s revenue reached $5 million, marking its highest first-quarter performance since 2009.
The growth in revenue was primarily attributed to higher sales of bottled soda in Canada, the foodservice segment, and the continued expansion of the company’s cannabis-infused beverage line. Its Mary Jones brand generated approximately $600,000 in revenue during the first quarter of 2024, a solid lift from the $200,000 reported in the first quarter of 2023.
Jones Soda’s gross profit also improved, rising 850 basis points to 37.8% versus 29.3% in the year-ago period. The improvement was driven by proactive pricing adjustments and growing sales of higher-margin Mary Jones products, the company said.
Despite the rise in revenue and gross profit margin, Jones Soda posted a net loss of $1.2 million, a slight improvement from $1.4 million in the same period last year.
“2024 is off to a great start as I’m pleased to report our highest revenue performance for the first quarter since 2009,” president and CEO David Knight said in a statement. “I believe we are making excellent progress transitioning Jones from a soda company to a high-growth beverage company.”
The company said its efforts to expand product lines and enter new markets have been gaining traction. In March, management cited initiatives such as ready-to-drink alcoholic offerings and a collaboration with Amazon Prime Video and Bethesda Game Studios on a special edition Nuka Cola for a TV series based on the popular post-apocalyptic Fallout video game series.
Knight noted at the time that the Mary Jones brand had been growing, with the introduction of hemp delta-9 products and its entry into the Canadian market. The company also announced a new food service division and enhanced distribution in Canada.
Looking ahead, Knight expressed optimism about the company’s growth prospects in 2024, as it continues to focus on those core growth drivers. The company said it plans to introduce new extensions to its product offerings, along with brand new labels and packaging, to better compete with the largest brands in various beverage categories.
At the end of March, Jones Soda had $2.8 million worth of cash and equivalents. The company also secured a commitment letter from a creditor for a $2 million revolving credit facility to support its working capital needs.
