Vending

Jones Soda boosts Q4, FY 2022 revenue, incurs loss from cannabis expansion

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March 10, 2023

Jones Soda Co. lifted its Q4 and FY 2022 revenue on higher sales, but it extended its loss on costs partly related to its cannabis market expansion, according to an earnings report.

Highlights include:

Revenue rose 28%, from $2.9 million in Q4 2021 to $3.7 million in the quarter ending Dec. 31, 2022, primarily attributable to increased sales within retail and alternative sales channels for core bottled business, along with approximately $239,000 in revenue from the company's cannabis products that launched in 2022.
Net loss rose from $1.3 million to $1.6 million in the comparative quarters, primarily attributable to the $871,000 of operating expenses and development costs related to the company's entry into the cannabis sector during 2022 and the hiring of additional personnel to further develop the company's foodservice and fountain business.
Loss per share remained at 2 cents for the comparative quarters.
Full-year revenue increased 29%, from $14.8 million in 2021 to $19.1 in 2022, primarily attributable to the growth in the core bottled business through retail and alternative channels, along with generating approximately $353,000 from the cannabis products launched in 2022.
Net loss rose from $1.8 million to $6.4 million in the comparative years, primarily attributable to the $3.6 million of expenses related to the entry into the cannabis sector, additional personnel hires to support the foodservice and fountain business and a one-time $334,500 benefit recorded in the prior year period in connection with the forgiveness of a loan granted under the government's Payment Protection Program.
Loss per share rose from 3 cents to 7 cents in the comparative years.

Shares traded at 21 cents Thursday against a 52-week range of 18 cents to 81 cents.

"We delivered our 10th consecutive quarter of year-over-year revenue growth as we completed the second year of our three-year turnaround strategy," Mark Murray, president and CEO, said in the press release. "2022 was another notable year in which we made our successful entry into the cannabis market with our Mary Jones brand and continued market share gains in our core soda business with the addition of outstanding new partners across all of our distribution channels."