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]

Core Viewpoint - Swiss Water Decaffeinated Coffee Inc. will hold a conference call to discuss its financial results for the three and nine months ended September 30, 2025, on November 7, 2025 [1]. Company Overview - Swiss Water Decaffeinated Coffee Inc. is a leading specialty coffee company that utilizes the proprietary Swiss Water Process to decaffeinate green coffee without chemical solvents [3]. - The company also owns Seaforth Supply Chain Solutions Inc., which is involved in green coffee handling and storage [3].

Core Insights - Swiss Water Decaffeinated Coffee Inc. reported strong revenue growth in Q2 2025, with a 56% increase year-over-year, reaching C$67.7 million, driven by higher coffee futures prices and volume growth [6][9] - Despite revenue growth, the company experienced a net loss of C$0.4 million in Q2 2025, attributed to increased production costs, foreign exchange losses, and hedge position losses [4][6][9] - The company has taken steps to strengthen its balance sheet, including renewing its operating credit facility to C$80 million and repurchasing outstanding warrants from Mill Road Capital [4][6][13] Second Quarter 2025 Highlights - Processed volumes remained stable compared to Q2 2024 [6] - Revenue increased by C$24.3 million or 56% compared to Q2 2024 [6][9] - Adjusted EBITDA decreased by C$2.7 million or 59% year-over-year, totaling C$1.8 million [6][9] Year to Date 2025 Highlights - Year-to-date processed volumes increased by 2% compared to 2024 [6] - Revenue for the first half of 2025 reached C$130.0 million, a 58% increase over 2024 [6][9] - Adjusted EBITDA for the first half decreased by C$3.4 million or 47% compared to 2024, totaling C$3.8 million [6][9] Operational Performance Summary - The NY'C' coffee futures price for Arabica coffee averaged US$3.59/lb in Q2 2025, a 64% increase from US$2.20/lb in Q2 2024 [6][7] - The company’s gross profit for Q2 2025 was C$5.2 million, a decrease of 32% year-over-year [9] - Gross margin percentages for Q2 2025 were 8%, down from 18% in Q2 2024, primarily due to increased green coffee revenue with lower margins [9] Financial Results Overview - The company recorded a net loss of C$0.4 million for Q2 2025, compared to a net income of C$0.9 million in Q2 2024 [9] - Year-to-date net income was C$0.1 million, an increase from C$0.05 million in 2024 [6][9] - The company’s operating income for Q2 2025 was C$1.4 million, a decrease of 63% compared to Q2 2024 [9]

Core Viewpoint - Swiss Water Decaffeinated Coffee Inc. reported strong financial results for Q1 2025, with significant revenue growth driven by volume increases and higher coffee commodity prices, despite facing challenges from market volatility and hedge losses [3][12]. Financial Performance - Revenue for Q1 2025 was C$62.3 million, a 61% increase from C$38.7 million in Q1 2024 [5][12]. - Gross profit rose to C$7.3 million, up 42% from C$5.1 million in the same period last year, with a gross margin percentage of 12% [5][12]. - Net income for Q1 2025 was C$0.5 million, compared to a net loss of C$0.9 million in Q1 2024, reflecting improved operational efficiency and cost control [9][12]. - Adjusted EBITDA decreased by 28% to C$2.0 million from C$2.8 million in Q1 2024, impacted by timing-related losses from hedge positions [7][12]. Operational Highlights - Processed volumes increased by 6% compared to Q1 2024, supported by strong customer demand and a stable order flow [8]. - The company has consolidated production in Delta, operating both decaffeination lines continuously, which has improved sales distribution [8]. - The NY'C' coffee futures price for Arabica coffee averaged US$3.73/lb in Q1 2025, a 97% increase from US$1.90/lb in Q1 2024, indicating significant market volatility [7][12]. Market Context - The US administration's announcement of a 10% tariff on imports from various countries, effective April 5, 2025, may introduce additional cost pressures for Swiss Water's US-bound shipments [13][14]. - Swiss Water's decaffeination process is classified as "non-transformational," allowing it to retain original country-of-origin status for tariff purposes, thus avoiding tariffs on exports to the US during Q1 2025 [8][13].