Swiss Water Reports Second Quarter 2025 Results

VANCOUVER, British Columbia, Aug. 06, 2025 (GLOBE NEWSWIRE) — Swiss Water Decaffeinated Coffee Inc. (TSX:SWP) (“Swiss Water” or “the Company”), a leading specialty coffee company and premium green coffee decaffeinator, today reported financial results for the three and six months ended June 30, 2025. All amounts are expressed in Canadian dollars unless otherwise stated.

Second Quarter 2025 Highlights

• Q2’25 processed volumes remained relatively stable over Q2’24;
• Revenue of $67.7 million, an increase of 56% over Q2’24;
• Net Loss of $0.4 million, a decrease of $1.3 million over Q2’24;
• Adjusted EBITDA of $1.8 million, a decrease of $2.7 million or 59% over Q2’24;
• The NY’C’ coffee futures price for Arabica coffee remained volatile during Q2’25, peaking at US$4.10/lb in April. During Q2’25, the NY’C’ averaged US$3.59/lb, compared to an average of US$2.20/lb in Q2’24, an increase of 64%;
• Operating credit facility renewed and expanded to $80M;
• Agreement with Mill Road Capital to repurchase and cancel outstanding warrants.

Year to Date 2025 Highlights

• Year to date processed volumes increased 2% over 2024;
• Revenue of $130.0 million, an increase of 58% over 2024;
• Net income of $0.1 million, an increase of $0.05 million over 2024;
• Adjusted EBITDA of $3.8 million, a decrease of $3.4 million or 47% over 2024;

“We are pleased to have delivered volume growth and stable net income during the first six months of this year, reflecting the ongoing strength of our customer relationships and the resilience of our business. Despite solid volume performance, our year-over-year second quarter profitability was adversely effected by losses from rolling forward hedge positions within an inverted market, depreciation of the U.S. dollar, increased production costs due to our strategic decision to reduce finished goods inventory, and the front loading of maintenance costs in 2025. In any period, material variances in revenue and Adjusted EBITDA versus prior year can arise due primarily to volatility in commodity pricing and foreign exchange rates. Through our risk management activities, we hedge versus this volatility so that over time, the Adjusted EBITDA and net income reflect pure operating performance exclusive of these volatile factors. We expect the industry specific volatility that effected our second quarter to be temporary and reverse year-to-go,” said Frank Dennis, CEO of Swiss Water. “In addition, I am delighted that during the second quarter, we executed initiatives to materially strengthen our balance sheet. We renewed and expanded our operating credit facility, continued to repay construction debt, and reached an agreement to repurchase and cancel the Mill Road Capital warrants. These steps continue to enhance our financial flexibility and support our long-term strategy.”

Summary of Operational Performance

• Total processing volumes in pounds for the first half increased by 2% when compared to 2024, supported by continued customer demand and strong order flow. With all production now fully consolidated in Delta and both decaffeination lines running 24/7, except for planned maintenance, we have returned to a more predictable distribution of sales, reflecting both operational momentum and a growing, stable customer base.
• The NY’C’ coffee futures price for Arabica coffee remained volatile during Q2, peaking at US$4.10/lb in April 2025. Spot availability of coffees remains very low, and pressure on the futures market intensified during the quarter. Moving forward, the higher prices and inverted coffee futures market may result in a softening of consumer demand and volumes shipped to importers.
• During the first quarter of 2025, the US administration signalled its intention to impose blanket tariffs on Mexican and Canadian imports. Swiss Water’s decaffeination process has been formally classified by US customs as “non-transformational”, allowing processed beans to retain the original country-of-origin status for tariff purposes. As a result, Swiss Water’s exports to the US were not subject to tariffs during the three months ended March 31, 2025, but were subject to a 10% blanket tariff rate, or the applicable tariff rate of the country of origin of the coffee in Q2.

Summary of Financial Results