Swiss Water Reports Year End and Fourth Quarter 2024 Results

/EIN News/ -- VANCOUVER, British Columbia, March 12, 2025 (GLOBE NEWSWIRE) -- Swiss Water Decaffeinated Coffee Inc. (TSX:SWP) (“Swiss Water” or “the Company”), a leading specialty coffee company and premium chemical free coffee decaffeinator, today reported financial results for the three months and fiscal year ended December 31, 2024. All amounts are expressed in Canadian dollars unless otherwise stated.

Fiscal Year 2024 Financial Highlights

• Revenue of $173.1 million, an increase of 4% over the prior year;
• Gross Profit of $26.2 million, an increase of 39% over prior year;
• Net Income of $1.3 million, an increase of 340% over prior year;
• Adjusted EBITDA of $14.3 million, an increase of 7% over the prior year;
• Volumes for the year are up slightly;
• Operating cost efficiencies from consolidated production;
• The NY’C’ coffee futures price for Arabica coffee remained volatile during the year, peaking at US$3.36/lb in December. In 2024, the NY’C’ averaged US$2.35/lb, compared to an average of US$1.72/lb in 2023, an increase of 37%. Spot availability of coffees remains very low and pressure on the futures market continues.
  

Fourth Quarter 2024 Highlights

• Revenue of $49.2 million, an increase of 19% over Q4 2023;
• Gross Profit of $7.0 million, an increase of 1% over Q4 2023;
• Net Income of $2.0 million, an increase of 109% over prior year;
• Adjusted EBITDA of $4.9 million, a slight decrease of 2% over Q4 2023;
• Full repayment of $15.9 million Mill Road debenture with warrants;
• Q4 2024 volumes were stronger than anticipated. However, they were marginally lower than Q4 2023, which included higher than normal volumes as a backlog of orders which had accumulated during the transition to the Company’s new facility were processed and shipped.

"2024 was a pivotal year for Swiss Water, one of transformation and resilience. Despite persistent volatility in global coffee markets, we are pleased to report solid results that underscore the effectiveness of our strategic approach and the trust of our customers. The consolidation of our production into our new Delta facility has positioned us for enhanced operational efficiency and sustainable long-term growth,” said Frank Dennis, CEO of Swiss Water. “Our reputation for premium quality decaffeinated coffee, combined with our strategic inventory positioning, enabled us to meet our customers' needs during a challenging market environment. By maintaining a strong balance sheet, we preserved inventory in critical locations, ensuring roasters could access our high-quality coffee with immediate availability. In the fourth quarter, we further fortified our financial position by retiring a significant debt obligation to Mill Road Capital LLC, which meaningfully expands our strategic and financial flexibility. As we look forward, we remain steadfastly committed to creating value for our customers and stakeholders, by confidently navigating the dynamic global coffee landscape."

Summary of Financial Results

In C$ ‘000s except per share amounts	3 months ended December 31							12 months ended December 31
	2024		2023		$ Change		% Change	2024	2023	$ Change	% Change
Revenue	49,249		41,237		8,012		19%	173,129	166,277	6,852	4%
Cost of sales	(42,275)		(34,321)		(7,954)		23%	(146,939)	(147,479)	540	0%
Gross profit	6,974		6,916		58		1%	26,190	18,798	7,392	39%
Operating expenses	(3,811)		(3,544)		(267)		8%	(15,135)	(13,168)	(1,967)	15%
Operating income	3,163		3,372		(209)		-6%	11,055	5,630	5,425	96%
Non operating or other	(299)		(1,981)		1,682		85%	(8,744)	(6,162)	(2,582)	42%
Income tax recovery (expenses)	(851)		(430)		(421)		98%	(1,042)	4	(1,046)	-100%
Net income (loss)	2,013		961		1,052		109%	1,269	(528)	1,797	340%
Adjusted EBITDA1	4,885		5,008		(123)		-2%	14,318	13,354	964	7%
Net income (loss) per share – basic	0.21		0.10					0.13	(0.06)
Net income (loss) per share - diluted2	0.21		0.10					0.13	(0.06)

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 reconciliation of net income, an IFRS measure, to Adjusted EBITDA is as follows:

In C$ ‘000s	3 months ended December 31						12 months ended December 31
	2024				2023			2024			2023
Net income (loss) for the period	$	2,013		$	961		$	1,269		$	(528)
Income tax (recovery) expense		851			430			1,042			(4)
Income (loss) before tax	$	2,864		$	1,391		$	2,311		$	(532)
Finance income		(334)			(492)			(1,749)			(1,629)
Finance expense		1,865			2,326			8,740			8,265
Depreciation & amortization		1,617			1,752			6,777			9,188
Unrealized (gain) loss on foreign exchange forward contracts		(34)			38			(71)			127
Fair value (gain) loss on the embedded option		315			126			979			(76)
Other gains		-			-			-			(175)
Loss (gain) on foreign exchange		(1,070)			377			(1,387)			234
Share-based compensation		302			130			1,277			597
Impact of IFRS 16 - Leases		(640)			(640)			(2,559)			(2,645)
Adjusted EBITDA	$	4,885		$	5,008		$	14,318		$	13,354

Call Details

A conference call to discuss Swiss Water’s recent financial results will be held on Thursday, March 13, 2025, at 1:00 pm Pacific (4:00 pm Eastern). To access the conference call, please dial:

• 1-888-506-0062 (toll-free) or
• 1-973-528-0011 (international);
• Listeners will be prompted to provide an access code: 714346. If a listener does not have this code, they can reference the Company name as an alternative passcode.
  

A replay will be available through March 27, 2025, at

• 1-877-481-4010 (toll-free) or
• 1-919-882-2331 (international); replay passcode: 52072

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

About Swiss Water

Swiss Water Decaffeinated Coffee Inc. is a leading specialty coffee company and a premium chemical free 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.

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 any pandemics, global and local climate changes, changes in interest rates, inflation, taxation, transportation availability, and general economic conditions. Additional risks are discussed in Swiss Water’s most recently published Annual Information Form, the annual and quarterly Management Discussion and Analysis, and audited and interim consolidated financial statements that can be found on SEDAR+ and the Company’s website. 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.