• Q1 net loss of US$399,000 compared to $1.7m a year prior
  • Net sales fall by 20% to $3.1m
  • Operating loss narrows to $388,000 from $1.6m
Jones Soda posted its Q1 results yesterday

Jones Soda posted its Q1 results yesterday

Jones Soda has narrowed its first-quarter losses by US$1.3m, but the troubled soft drinks maker continues to lose sales as it turns away from non-core markets.

Net losses came in at US$399,000 in the three months to the end of March, compared to losses of $1.7m in last year's Q1, the Seattle-based company said yesterday (9 May). Net sales fell by 20% to $3.1m over the same period.

Operating losses in the quarter dropped to $388,000 from $1.6m the prior year.

Jones Soda CEO, Jennifer Cue, said that the 76% improvement on bottom-line losses meant the companies “turnaround plan” is on-track.

“The first focus of our turnaround plan was cost containment and re-orienting the company to sustainable operations,” Cue said.

“Now our attention is turned to the next phase which emphasises sales structure and distribution strategies that we believe will lead Jones Soda to profitable, growing operations for the long term.”

The rescue plan was launched last year after Cue stepped in to replace former CEO William Meissner. It focused on reducing administrative and operating costs as well as reallocating resources to “key core markets”. 

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 its shares climbed by about 6% to $0.566, a 15-month high.

To read the company's official statement, click here.