Swiss Water Reports Year End and Fourth Quarter 2024 Results
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:
(toll-free) or
(international);
Listeners will be prompted to provide If a listener does not have this code, they can reference the as an alternative
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 OfficerSwiss Water Decaffeinated Coffee Inc.Phone: 604.420.4050Email: 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.Sign in to access your portfolio
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
17 minutes ago
- Yahoo
Why consumer stocks are falling out of favor on Wall Street
Consumer-facing stocks are losing favor as investors grow cautious about lower-income spending. Yahoo Finance Senior Reporter Allie Canal joins Market Domination Overtime with Josh Lipton to discuss how earnings are showing a split between lower- and higher-income consumer trends. To watch more expert insights and analysis on the latest market action, check out more Market Domination Overtime here. Consumer facing stocks are falling out of favor with US investors. Senior reporter Allie Canal joins us now with the Yahoo Finance Investor playbook. Allie. Hi, Josh. Yeah, Wall Street seems to be growing a bit more cautious on the consumer, especially lower income Americans, and that bifurcation, it's showing up in this week's earnings. So earlier this week we saw Chipotle shares fall double digits after the company cut its full year outlook. Hilton dropped on weak US room revenue. Hasbro flagged ongoing pricing sensitivities, and even American Airlines and Southwest, both those airliners warning on soft domestic travel. Now, excluding the airlines, many of these names fall under the consumer discretionary sector. And despite the S&P 500 trading at record highs, up around 10% on the year, consumer discretionary is barely positive. That actually makes this sector one of the worst performers in 2025. And then on the flip side, you have companies catering to wealthier households, like J.P. Morgan and Amex. They're holding up much better in this environment, and to that point, we've seen sectors like financials, industrials, communication services, technology, those sectors continue to outperform. We heard from Bank of America, which said that their survey data showed that industrials and financials, that actually drew the largest inflows last week, underscoring some of that investor appetite when it comes to these cyclical names with strong earnings momentum. And then what was the biggest outflow? That was consumer discretionary. So we're seeing this trade play out in real time. We talked to a few strategists about this bifurcation. Here's a little bit more of what they told us. I still think that we have a bit of a K-shaped economy. Uh maybe that's another similarity, like the meme stocks being all the rage again to what was happening in 2020, 2021, where you had this bifurcation. I think that we're having we have a bifurcated, uh, economy right now. Haves and have nots, both at the consumer level and at the stock level. The divergence between higher income and middle income and higher and lower income consumers is significant. That is what we're seeing in a very, very nuanced consumer market. This is a hyperpromotional environment to get people, especially lower income and lower middle income consumers to spend money, you have to be out promoting, you have to be out with deals. Yeah, so it's really interesting to see how this is playing out this earnings season, and the takeaway here is really that caution is rising around those lower income spenders, and until there's a bit more clarity on household demand, we may continue to see investors rotate into some of these higher income plays, at least for now, Josh.
Yahoo
17 minutes ago
- Yahoo
China's $733 Billion Warning: Why Investors Can't Ignore This Red Flag
China just posted a record-breaking 5.25 trillion yuan ($733 billion) budget deficit for the first half of the yeara 45% jump from the same period in 2024. Behind that number? A government pulling every fiscal lever it can to keep growth on track as exports to the US take a hit. While American tariffs remain elevatedroughly 30 percentage points higher than a year agoBeijing has doubled down on infrastructure and domestic spending to compensate for weakening external demand and a bruised property sector. Warning! GuruFocus has detected 9 Warning Signs with MSTR. So far, that strategy has bought time. GDP grew 5.3% in the first six months, running ahead of the government's full-year target. But under the surface, cracks are showing. Fiscal revenue fell 0.6% year-on-year, tax collections dropped 1.2%, and land salesa key source of fundingslipped another 6.5%. Meanwhile, total government spending rose 9% to nearly 19 trillion yuan, driven by capital-heavy projects and social support. For investors, that paints a mixed picture: growth is holding up, but the cost is rising fast. All eyes now turn to two events on the horizon: a high-level economic policy meeting in Beijing and fresh trade negotiations between Chinese and US officials. What happens next could shape the outlook not just for China's fiscal stance, but for any company exposed to cross-border flowsparticularly those like Tesla (NASDAQ:TSLA), which depend on both Chinese consumers and manufacturing capacity. If tariffs rise or growth slows, earnings leverage across sectors could swing hard in either direction. This article first appeared on GuruFocus.
Yahoo
17 minutes ago
- Yahoo
Trump Says U.S. Has ‘50-50 Chance' of Reaching Trade Deal With EU
President Trump arrived in Scotland to meet the U.K. and the European Union leaders, saying the U.S. has a 'good, 50-50 chance' to strike a trade deal with the EU. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
