Swiss Water Reports Third Quarter 2025 Results

Core Insights - Swiss Water Decaffeinated Coffee Inc. reported strong volume growth and improved profitability in Q3 2025, despite market volatility and supply challenges [4][7] - The company experienced a significant increase in revenue and net income compared to Q3 2024, driven by customer demand and favorable foreign exchange movements [4][12] - The coffee futures market remained volatile, impacting pricing and supply dynamics, particularly with increased tariffs on Brazilian coffee imports [8][12] Financial Performance - Q3 2025 processed volumes increased by 7% compared to Q3 2024, with revenue reaching C$62.7 million, a 50% increase [7][12] - Net income for Q3 2025 was C$0.2 million, an increase of C$1.0 million from a net loss in Q3 2024 [7][12] - Adjusted EBITDA for Q3 2025 was C$3.3 million, up 52% from Q3 2024 [7][12] Year-to-Date Highlights - Year-to-date processed volumes increased by 4% over 2024, with revenue of C$192.7 million, a 56% increase [7][12] - Year-to-date net income was C$0.4 million, an increase of C$1.1 million compared to the same period in 2024 [7][12] - Adjusted EBITDA year-to-date decreased by 24% to C$7.1 million, primarily due to lower green coffee differential margins [7][12] Market Dynamics - The NY'C' coffee futures price for Arabica coffee averaged US$3.37/lb in Q3 2025, a 37% increase from US$2.46/lb in Q3 2024 [7][12] - The U.S. administration's tariff increase on Brazilian coffee products from 10% to 50% is expected to disrupt demand and volume for the next 3-6 months [8][12] - Swiss Water's decaffeination process has been classified as "non-transformational," allowing processed beans to retain their original country-of-origin status for tariff purposes [8]