US: Jones Soda nears black as H1 losses shrink
- H1 net profits narrow 77% to US$494,000
- Net sales drop 20% to $7.4m
- Operating profits narrow 77% to $469,000
- Q2 losses just $95,000
Jones Soda is edging closer to a profit
Jones Soda has narrowed first-half losses as a cost-cutting plan continues to inch the company nearer to turning a profit.
Net losses in the first six months of 2013 were US$494,000 compared to $2.1m over the same period last year, the US soft drinks maker said yesterday (8 August). Net sales fell by 20% to $7.4m over the same period while operating losses narrowed by 77% to $469,000.
Second-quarter results saw the company almost reach the black, with net losses standing at $95,000 compared to $459,000 over the same quarter last year. Q2 sales fell 19% to $4.3m and operating losses narrowed by 80% to $81,000.
Savings were made in both marketing and administration, with H1 promotion and selling costs dropping 52% and general and administrative costs down by 71%.
“Twelve months ago when I returned to Jones Soda as CEO, I stated that our priority was to become a financially sustainable company,” Jones Soda's CEO, Jennifer Cue, said. “Our efforts are delivering results.”
The rescue plan was launched last year after Cue stepped in to replace former CEO William Meissner. The group focussed on cutting administrative and operating costs as well as reallocating resources to “key core markets”.
Cue said the group will maintain “our focus and discipline” in carrying out the rescue plan, and will continue its “emphasis on making our product more widely available in independent accounts”.
The company, which owns the Jones Soda and WhoopAss Energy Drink brands, has been losing money for some time now. In 2006, Jones Soda posted FY operating profits of $4.6m but by 2011 that had fallen to a $7.2m loss. In 2012 results, released in March, net losses stood at $2.9m while sales shrank by 6%.
In September, the group lost its NASDAQ stock market listing because its shares had spent too long below the $1 mark. In the over-the-counter OTCQB Marketplace yesterday Jones Soda shares stayed flat.
To read the company's official statement, click here.
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