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Swiss Water Reports 2024 First Quarter Earnings

VANCOUVER, British Columbia, May 08, 2024 (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 months ended March 31, 2024.

First Quarter Financial and Operational Highlights

“We continued to see strong demand for our chemical-free decaffeinated coffee offerings during the first quarter of this year. However, when comparing quarterly results for 2024 with the same periods last year, it is important to note that the distribution of quarterly sales volumes in 2023 did not follow normal seasonality patterns. In particular, Swiss Water reported much stronger than normal volume growth and financial results during the first quarter of 2023. This was mainly due to the front loading of customer orders in anticipation of the temporary production constraints resulting from our exit from our legacy Burnaby site during the second quarter, prior to the full commissioning of our second new decaffeination line at our Delta, BC facility. With this context in mind, the year-over-year decline in first quarter volumes this year was fully expected, when compared with the extraordinarily high volume we recorded in Q1 of last year,” said Frank Dennis, Swiss Water’s President and CEO. “Looking forward, interest in chemical-free decaffeinated coffee is intensifying and we are optimistic about the future. Swiss Water’s production activities are now fully consolidated onto one site, and we expect that this will enable us to realize further operational efficiencies through the balance of this year. The performance of our new Delta line 2 has been very good and we have adequate unused capacity to service our medium-term growth ambitions. However, despite the underlying strength of our business, uncertainty persists. Geopolitical and economic factors, particularly inflation, are continuing to disrupt the normal business order around the world. And, after a period of relatively stable coffee prices during the second half of 2023, the NY’C’ started to increase sharply toward the end of the first quarter. If futures prices remain at elevated levels, this may have a negative impact on demand and thus our growth in 2024,” Dennis added.

Operational Highlights

The following table shows changes in sales volumes during the first quarter of 2024 compared to the same period in 2023.

Volumes 3 months ended
March 31, 2024
3 months ended
March 31, 2023
Change in total volumes -18% +21%
By customer type    
Roasters -13% +44%
Importers -25% 0%
Specialty -25% +16%
Commercial -17% +24%

Financial Highlights

The following table shows select financial information related to the first quarter of 2024, as compared to the first quarter of 2023:

In $000s except per share amounts   3 months ended March 31,  
(unaudited)     2024     2023  
Revenue   $ 38,730   $ 49,045  
Gross profit     5,115     4,894  
Operating income     1,364     1,424  
Net loss     (900 )   (701 )
Adjusted EBITDA1     2,788     4,982  
Net loss per share – basic2   $ (0.10 ) $ (0.08 )
Net loss per share – diluted2   $ (0.10 ) $ (0.08 )

1 Adjusted EBITDA is defined in the ‘Non-IFRS Measures’ section of the MD&A and is a “Non-GAAP Financial Measure” as defined by CSA Staff Notice 52-306.
2 Per-share calculations are based on the weighted average number of shares outstanding during the periods. Diluted earnings per share take into account shares that may be issued upon the exercise of warrants and RSUs.

Adjusted EBITDA

Swiss Water defines Adjusted EBITDA as net income before interest, depreciation, amortization, impairments, share-based compensation, gains/losses on foreign exchange, gains/losses on disposal of property and capital equipment, fair value adjustments on embedded options, loss on extinguishment of debt, adjustment for the impact of IFRS 16 – Leases, and provision for income taxes and other non-cash gains related to a remeasurement of asset retirement obligation. The Company’s definition of Adjusted EBITDA also excludes unrealized gains and losses on the undesignated portion of foreign exchange forward contracts.

The following table provides a reconciliation of net income, an IFRS measure, to Adjusted EBITDA as follows:

In $000s   3 months ended March 31,  
(unaudited)     2024     2023  
Loss for the period   $ (900 ) $ (701 )
Income tax recovery     (224 )   (216 )
Loss before tax   $ (1,124 ) $ (917 )
Finance income     (460 )   (437 )
Finance expenses     2,288     1,837  
Depreciation & amortization     1,716     3,582  
Unrealized (gain) loss on foreign exchange forward     (38 )   74  
Loss on fair value of embedded option     891     968  
(Gain) loss on foreign exchange     (380 )   84  
Share-based compensation     535     493  
Impact of IFRS 16 – Leases     (640 )   (702 )
Adjusted EBITDA   $ 2,788   $ 4,982  


Company Profile

Swiss Water Decaffeinated Coffee Inc. is a leading specialty coffee company and a premium green coffee decaffeinator that employs the proprietary Swiss Water® Process to decaffeinate green coffee without the use of chemical solvents such as methylene chloride. It also owns Seaforth Supply Chain Solutions Inc., a green coffee handling and storage business. Both businesses are located in Delta, British Columbia, Canada.

Additional Information

A conference call to discuss Swiss Water’s recent financial results will be held on Thursday, May 9, 2024, at 1:00 pm Pacific (4:00 pm Eastern). To access the conference call, please dial:

A replay will be available through May 23, 2024, at

A more detailed discussion of Swiss Water Decaffeinated Coffee Inc.’s recent financial results is provided in the Company’s Management Discussion and Analysis filed on SEDAR+ and Swiss Water’s website (investor.swisswater.com).

For more information, please contact:

Iain Carswell, Chief Financial Officer
Swiss Water Decaffeinated Coffee Inc.
Phone: 604.420.4050
Email: investor-relations@swisswater.com
Website: investor.swisswater.com

Forward-Looking Statements

Certain statements in this press release may constitute “forward-looking” statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. When used in this press release, such statements may include such words as “may”, “will”, “expect”, “believe”, “plan”, “anticipate” and other similar terminology. These statements reflect management’s current expectations regarding future events and operating performance, as well as management’s current estimates, but which are based on numerous assumptions and may prove to be incorrect. These statements are neither promises nor guarantees, but involve known and unknown risks and uncertainties, including, but not limited to, risks related to processing volumes and sales growth, operating results, the supply of utilities, the supply of coffee and packaging materials, supply of labour force, general industry conditions, commodity price risks, technology, competition, foreign exchange rates, construction timing, costs and financing of capital projects, a potential impact of the COVID-19 and/or other pandemics, global and local climate changes, changes in interest rates, inflation, transportation availability, and general economic conditions. The forward-looking statements and financial outlook information contained herein are made as of the date of this press release and are expressly qualified in their entirety by this cautionary statement. Except to the extent required by applicable securities law, Swiss Water undertakes no obligation to publicly update or revise any such statements to reflect any change in management’s expectations or in events, conditions, or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those described herein.


1 Adjusted EBITDA is defined in the ‘Non-IFRS Measures’ section of the MD&A and is a “Non-IFRS Financial Measure” as defined by CSA Staff Notice 52-306.
2 Adjusted EBITDA is defined in the ‘Non-IFRS Measures’ section of the MD&A and is a “Non-IFRS Financial Measure” as defined by CSA Staff Notice 52-306.


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