Vending

Jones Soda posts 17% Q3 revenue boost, cuts loss

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November 6, 2020

Jones Soda Co. revenue increased 17% to $3.5 million for the third quarter ended Sept. 30, 2020 compared to $3.0 million for last year's third quarter, according to an earnings report.

The quarter's net loss of $450,000 for the quarter marked an improvement over last year's $476,000 loss. The company posted a 1-cent loss per share for the quarter in both years.

Shares traded at 17 cents Thursday against a 52-week range of 15 cents to 43 cents.

"During the third quarter, we continued to focus on our core competencies and drive sales through our bottled soda products, which resulted in a return to year-over-year revenue growth after six consecutive quarters of decline," Jamie Colbourne, interim CEO, said in a press release. "Our team has continued to do an excellent job navigating the uncertainties brought on by the COVID-19 pandemic with the majority of our employees working remotely, while still providing best-in-class service to our customers and partners."

The revenue increase was primarily driven by a 40% increase in sales of Jones' core bottled soda products, partially offset by the expected decline in 7-Select revenue.

Gross profit as a percentage of revenue increased 430 basis points to 26.0% for the third quarter of 2020 compared to 21.7% in the year-ago third quarter. The increase was driven by a more favorable product mix, along with optimizing costs associated with transportation and warehousing.

Adjusted EBITDA improved to a $324,000 loss for the quarter compared to a $352,000 loss last year after the company invested in marketing and sales.

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