VANCOUVER, British Columbia, Canada – 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.
Swiss Water: 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.”
