Following on the success of its limited cannabis product launch, craft soda maker Jones Soda Co. (CSE: JSDA) (OTCQB: JSDA) said it plans to continue expanding that product line to “further establish our standing in the cannabis space.”
The company made the announcement when it released its financial results for the third quarter ended Sept. 30.
“We have several more products in development that remain on track to release in the coming quarters, which we believe will further establish our standing in the cannabis space and position Mary Jones for fast paced expansion,” said Mark Murray, president and CEO. This company has already added a 100 milligram-THC beverage targeted at the “mature cannabis user.”
Revenue for the soda company increased 5% to $4.8 million in the third quarter, versus the same period a year ago, but the net loss also increased from $59,000 to $1.7 million. The company attributed the increased loss to the investment in entering the cannabis market and increased material costs.
The increased costs also contributed to the decline in gross profit as a percentage of revenue, which fell to 26.9% in the third quarter, compared with 32% a year ago.
For the nine months ended Sept. 30, revenue climbed 29% in a year-over-year comparison to $15.3 million. Net loss increased to $4.4 million from $626,000 a year ago. Gross margin fell from 30.5% to 27.5%.
At the end of the quarter, Jones Soda had $8.2 million cash on hand.
“While we faced inflationary related headwinds throughout the quarter, we added new points of distribution through our core bottled business and remained in-line with internal expectations regarding our modest year-over-year margin compression,” Murray said in a press release.
“We have made strong progress on our three-year strategic turnaround plan through the sustained growth in our core bottled business, efficient spend of marketing dollars, and the rapid adoption of Mary Jones within the cannabis community.”
The company plans to continue its shift to a higher-margin product mix, while maintaining the quirky image that established the company, including special programs around the holidays.