US: Jones Soda narrows YTD losses on cost-cutting drive
- YTD net losses narrow 66% to US$824,000
- Net sales down 13% to $11.6m
- Operating losses narrow 66% to $793,000
- Q3 volumes up 12%
Jones Soda is close to breaking even
Jones Soda has narrowed its year-to-date losses, with the US soft drinks maker claiming a turnaround plan implemented to stem heavy damages is on track.
Net losses slowed by 66% to US$824,000 in the nine months to the end of September, Jones Soda said yesterday (7 November). Sales dropped by 13% to $11.6m over the same period, while operating losses narrowed by 67% to $793,000.
Third-quarter losses widened slightly to $330,000, however volumes over the period grew by 12%. YTD volumes dropped by 11%
In an exclusive interview with just-drinks after H1 results in August, Jones Soda CEO, Jennifer Cue, said she had moved to cut crippling marketing and wage costs since replacing previous head Bill Meissner in June last year. She has since overseen the company's return from multi-million-dollar losses to near break-even in the past two quarters.
In yesterday's results, quarterly general and administrative costs were again down, declining by 23% following a 71% drop in H1.
Quarterly marketing costs rose again however, up 13% in Q3 to $646,000, after a 52% drop in H1. The increase follows Cue's promise in August to ramp up sales and marketing by bringing in new sales staff.
Cue said of yesterday's YTD results: “Five quarters into our turnaround, I am very encouraged that we delivered revenue growth in the third quarter. In addition, as a result of our ground-breaking marketing initiatives, such as Made in Michigan, we are attracting industry-wide interest in the Jones Soda brand from major retailer and distributor partners.”
Since February, Jones Soda's share price has slowly recovered from a low of around $0.25 to sit at $0.78. Last year, Jones Soda was delisted from the NASDAQ because its shares had languished below US$1 for too long.
To read the company's full results, click here.
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