The company is looking to its THC-infused beverages, Mary Jones, for growth momentum.
Jones Soda Co. (CSE: JSDA) (OTCQB: JSDA) had a tougher first quarter than in 2022, with revenues down by 13%, but the company also managed to decrease its rate of losses by 17% from the first quarter a year ago.
According to its first quarter 2023 earnings report, Jones Soda pulled in $3.9 million for the first three months of the year, compared to $4.5 million for the same timeframe in 2022. It also posted a $1.4 million loss, an improvement from the $1.7 million loss in Q1 2022.
The company attributed the decrease in losses to an “increase in gross profit margin and a decrease in total operating expenses,” and said the disappointing comparison was due to an “outsized sales performance” in Q1 2022.
As of March 31, Jones Soda had $6.4 million in the bank, down from $8 million at the close of 2022.
CEO Mark Murray said he knew heading into 2023 that the first quarter would be “challenging” just by comparison to the 2022 revenues, but said he believes the company has momentum going forward, in part thanks to its line of THC-infused beverages, Mary Jones.
“Momentum continues to grow in California, where we have seen strong sales of our 10-milligram and 100-milligram beverages,” Murray said in a press release.
“In response to this strong performance, we are planning to expand our flavor portfolio with the addition of grape and cola, bringing the lineup to a total of six great tasting options,” Murray added. “Outside of California, we are gaining traction and are on track with planned expansions in Washington, Michigan, and Nevada.”
Murray also said there have been promising developments in Jones Soda’s noninfused beverage business relationships with big vendors such as Target, Meijer, and and Kroger, which overall has the company on a solid path forward.
“Despite inflationary pressures in the consumer environment and some persistent supply chain uncertainties, we are pleased to be making steady progress, which we believe will further position Jones Soda for long-term success,” Murray said. (Full Story)