Jones Soda Co. (CSE: JSDA),(OTCQB : JSDA), reported mixed results in 2024. Annual revenue grew 15%, to $19.1million despite a difficult fourth quarter which saw revenues decline and losses increase. The main causes of the wider losses were increased operating costs and inventory write downs.
Seattle’s craft soda maker, who has diversified to cannabis-infused drinks, posted a $9.9-million net loss for 2024 or $0.09/share, up from a $4.9-million loss or $0.05/share in 2023. According to the report, this was due in part to increased investments made by the company into product development and marketing.
The fourth quarter was particularly difficult. Revenue fell to $2.8 from $3.5 in the previous period. The company said that the decrease was primarily due to lower sales volumes, mainly driven by the transition to a Canadian distributor combined with the loss a discount retailer in the U.S. in the third quarter 2024.
Its quarterly gross profit swung from a $700,000 positive to $1.3M negative, due largely to an inventory write off of $1.2M for discontinued items.
The company was tested by several significant challenges during the latter half of last year.
Harvey Harvey is optimistic about Jones Soda’s prospects for the future despite its recent struggles. Harvey has been with Jones Soda since February.
He said: “I am pleased to say that Jones Soda has made significant progress in turning our business around from the performance of last year.”
Mary Jones, the cannabis brand owned by the company, generated $3.1m in revenue for the year 2024. This is a 148% rise from $1.2m in 2023. Both traditional THC products generated revenues of $1.3m and newly-launched hemp-derived HD9 product, which brought in $1.8m their first year.
In the beverages division, including its craft sodas, and other newer lines of products, revenue generated by this company was approximately $17.8 Million for 2018, a growth rate of 15.4% compared to 2023. In their first year of being on the market, HD9 contributed $1.3million to this segment.
Jones Soda announced it was expanding its portfolio of products beyond its craft sodas. The company launched new lines such as the Latino-inspired Fiesta Jones 16 oz aluminum bottles, and Pop Jones a line of low-calorie, all-natural functional sodas available in slim 12 oz cans. The company launched Jones Zero Cola in more than 10,000 grocery stores nationwide and across regions last month.
It also said that it has been beefing up its distribution network. In the last 15 months, its number of partners increased from 75 to 80 and its reach was expanded in 37 different states. Jones Soda also gained distribution at nearly 2,000 convenience shops, which include several Circle K and other chain divisions.
Even so, reserves of cash continued to shrink throughout the year. By December 31, 2024 the total cash and cash-equivalents had fallen from $3.9 millions at the end 2023. In February, the company received a $5-million revolving line of credit to help address its liquidity issues. In addition to Harvey being appointed CEO, the company announced Brian Meadows’ appointment as Chief Financial Officer.
Management stated that they are working to implement a strategy which includes increased attention on HD9 opportunities, and the review of alternative strategic solutions for their Cannabis THC business. Harvey says that company’s business operations are also being optimized. The efforts include “reducing costs and streamlining operational efficiency” as well as implementing financial discipline.