Jones Soda Co. (CSE: JSDA) (OTCQB: JSDA) recorded a revenue drop during its second quarter of 2023, compared to the same period last year, but its new cannabis business segment was a bright spot with promising developments.
Key financial points from the second quarter of 2023 versus the year-ago period include:
- A revenue decline to $4.8 million from $6 million.
- Gross profit as a percentage of revenue rose by 440 basis points, hitting 32.4% from the previous 28%.
- Net losses contracted to $1 million or $(0.01) per share, in contrast to last year’s loss of $1.4 million or $(0.02) per share.
- Adjusted EBITDA came in at around a loss of $729,000, a notable improvement from the $1.1 million in the previous year.
Jones Soda’s new CEO, David Knight, who has been in his position for just over a month, signaled optimism about the company’s trajectory, citing gross margin expansion and improvements to the bottom line.
“In particular, we are returning to individual bottle sales with one of our major retailers, which we believe will help increase sales velocity in the back-half of 2023,” Knight said, underscoring the firm’s intent to increase brand visibility and nab a more meaningful market slice.
Moreover, the company’s foray into the cannabis sector, branded as “Mary Jones,” continues to grow. The brand’s revenue doubled to $400,000 during the quarter. Jones Soda continues to expand the line with the launch of two new flavors in fresh formats.
Additionally, the company plans to be fully operational in three additional states by the end of this year.
The company said that the second-quarter revenue drop was mainly due to a one-off inventory stocking event in 2022 with a major retailer, bringing in approximately $1 million that did not happen again in 2023.
The company’s cash position stood at $5.1 million as of June 30, down from $8 million at the end of 2022.