Swiss Water Reports Year End and Fourth Quarter 2025 Results
VANCOUVER, British Columbia, March 12, 2026 (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, 2025. All amounts are expressed in Canadian dollars unless otherwise stated.
Fourth Quarter 2025 Highlights
- Q4’25 processed volumes decreased 2% compared to Q4’24;
- Revenue of $66.0 million, an increase of 34% over Q4’24;
- Net income of $1.2 million, a decrease of $0.8 million compared to Q4’24;
- Adjusted EBITDA of $4.2 million, a decrease of $0.7 million or 14% compared to Q4’24;
- The NY’C’ coffee futures price for Arabica coffee remained volatile during Q4’25, peaking at US$4.23/lb in November. During Q4’25, the NY’C’ averaged US$3.83/lb, compared to an average of US$2.83/lb in Q4’24, an increase of 35%.
Fiscal Year 2025 Financial Highlights
- Processed volumes increased 2% over 2024;
- Revenue of $258.7 million, an increase of 49% over 2024;
- Net income of $1.6 million, an increase of $0.3 million over 2024;
- Adjusted EBITDA of $11.3 million, a decrease of $3.0 million or 21% compared to 2024;
- Operating credit facility renewed and expanded to $80M;
- Repayment of $5.4 million of construction debt in 2025;
- Repurchased and cancelled outstanding warrants held by Mill Road Capital.
“Despite unprecedented volatility, leading to an abnormal distribution of sales activity by quarter, 2025 was a year of meaningful progress for Swiss Water. The year was marked by disciplined execution, a strengthened balance sheet, and enduring customer demand for our chemical-free decaffeination process,” said Frank Dennis, CEO of Swiss Water. “In a global coffee market defined by persistent price volatility, an inverted futures curve, and shifting tariff conditions, we are pleased to report solid operational performance that reflects both the resilience and discipline of our organization and the trust our customers continue to place in us.”
“Although Adjusted EBITDA declined year over year due to timing differences on the recapture of market inversion costs, we closed the year with improved financial footing, bolstered by the repurchase and cancellation of the MRC warrants earlier in the year, and the expansion of our operating credit facilities. Both were significant milestones that meaningfully expand our financial flexibility going forward. Additionally, recovery of fiscal year 2025 inversion costs will continue in 2026. As market conditions begin to normalize, we remain steadfastly committed to supporting our customers and to building on the strong foundation we have established, confidently pursuing the growth opportunities and debt reduction plans that lie ahead.”
Summary of Operational Performance
- Total processing volumes in pounds for the three months and the full year ended December 31, 2025, decreased by 2% and increased by 2%, respectively, when compared to the same periods in 2024, supported by continued customer demand and order flow.
- The NY’C’ coffee futures price for Arabica coffee remained volatile during Q4, peaking at US$4.23/lb in November 2025. Spot availability of green coffees remains very low, pressure on the futures market intensified during the first half of 2025, and remained intense during the second half of the year.
- Swiss Water’s decaffeination process has been formally classified by US customs as “non-transformational”, allowing processed beans to retain the original country-of-origin status for tariff purposes.
- Throughout 2025, Swiss Water was impacted by unpredictable and rapidly changing US tariff policy. On November 20, 2025, the Company returned to a tariff free operating model. Strategies are in place to manage future tariff exposures, should they emerge.
- During the year, elevated coffee prices, market inversion and broader uncertainty led certain US customers to moderate advance purchase commitments and manage inventories more conservatively. In recent weeks, as coffee futures prices have declined and market conditions have begun to normalize, the Company has started to observe early signs of improved purchasing activity. However, customers continue to exercise prudent inventory management, and the movement of customers towards more normalized buying patterns is expected to be slow.
Summary of Financial Results
| In C$ ‘000s | 3 months ended December 31 | 12 months ended December 31 | ||||||||||||||||
| except for per share amounts | 2025 | 2024 | $ Change | % Change | 2025 | 2024 | % Change | % Change | ||||||||||
| Revenue | 66,005 | 49,249 | 16,756 | 34 | % | 258,719 | 173,129 | 85,590 | 49 | % | ||||||||
| Cost of sales | (57,989 | ) | (42,275 | ) | (15,714 | ) | 37 | % | (231,728 | ) | (146,939 | ) | (84,789 | ) | 58 | % | ||
| Gross profit | 8,016 | 6,974 | 1,042 | 15 | % | 26,991 | 26,190 | 801 | 3 | % | ||||||||
| Operating expenses | (3,453 | ) | (3,811 | ) | 358 | -9 | % | (14,932 | ) | (15,135 | ) | 203 | -1 | % | ||||
| Operating income | 4,563 | 3,163 | 1,400 | 44 | % | 12,059 | 11,055 | 1,004 | 9 | % | ||||||||
| Non-operating or other | (2,926 | ) | (299 | ) | (2,627 | ) | 879 | % | (9,969 | ) | (8,744 | ) | (1,225 | ) | 14 | % | ||
| Income tax expense | (431 | ) | (851 | ) | 420 | -49 | % | (527 | ) | (1,042 | ) | 515 | -49 | % | ||||
| Net income | 1,206 | 2,013 | (807 | ) | -40 | % | 1,563 | 1,269 | 294 | 23 | % | |||||||
| Adjusted EBITDA | (1) | 4,194 | 4,885 | (691 | ) | -14 | % | 11,324 | 14,318 | (2,994 | ) | -21 | % | |||||
| Earnings (loss) per share | (2) | |||||||||||||||||
| Basic and diluted | 0.13 | 0.21 | 0.16 | 0.13 | ||||||||||||||
| Diluted | 0.13 | 0.21 | (0.01 | ) | 0.13 | |||||||||||||
1 Adjusted EBITDA is defined in the ‘Reconciliation of Non-IFRS Measures’ section of this 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 equity-based RSUs.
- Revenue for the quarter and year ended December 31, 2025, was $66.0 million and $258.7 million, which represents a $16.8 million or 34% increase and a $85.6 million or 49% increase, when compared to the same periods in 2024. The increases were primarily driven by a higher NY’C’ coffee commodity price and enhanced further by year-to-date volume growth, increased activity within the Company’s storage and distribution business, and tariff expense recovery.
- Gross profit for the quarter and year ended December 31, 2025, was $8.0 million and $27.0 million, which represents a $1.0 million or 15% increase and a $0.8 million or 3% increase when compared to the same periods in 2024. In Q4, the positive impact of higher green coffee differential margins and foreign exchange benefits on green coffee cost recovery associated with the fluctuations in the US$ dollar were partially offset by lower volumes. Year to date, the incremental gross margin generated by higher volumes and higher green coffee differential margins were partially offset by foreign exchange losses on green coffee cost recovery, as well as the reversal of an inventory provision in 2024. This provision had a positive impact on gross profit in the prior year, but there was no such reversal in 2025.
- For the quarter and year ended December 31, 2025, we recorded net income after taxes of $1.2 million and $1.6 million, compared to a net income after taxes of $2.0 million and $1.3 million for the same periods in 2024. The decrease in Q4 was primarily driven by lower volumes and increased losses on risk management activities, partially offset by higher operating income. The increase year to date was primarily driven by increased volumes and higher operating income, a gain on the fair value of an embedded option and reduced net finance expense, partially offset by increased losses on risk management activities.
Adjusted EBITDA
Swiss Water defines Adjusted EBITDA as net income before interest, depreciation, amortization, impairments, share-based compensation, gains/losses on foreign exchange, gains/losses on disposal of property and capital equipment, fair value adjustments on embedded options, loss on extinguishment of debt, adjustment for the impact of IFRS 16 – Leases, and provision for income taxes and other non-cash gains related to a remeasurement of asset retirement obligation. The Company’s definition of Adjusted EBITDA also excludes unrealized gains and losses on the undesignated portion of foreign exchange forward contracts.
The reconciliation of net income, an IFRS measure, to Adjusted EBITDA is as follows:
| In C$ ‘000s | 3 months ended December 31 | 12 months ended December 31 | ||||||||||
| 2025 | 2024 | 2025 | 2024 | |||||||||
| Net income | $ | 1,206 | $ | 2,013 | $ | 1,563 | $ | 1,269 | ||||
| Income tax expense | 431 | 851 | 527 | 1,042 | ||||||||
| Income before income tax | $ | 1,637 | $ | 2,864 | $ | 2,090 | $ | 2,311 | ||||
| Finance income | (487 | ) | (334 | ) | (1,634 | ) | (1,749 | ) | ||||
| Finance expense | 1,538 | 1,865 | 6,593 | 8,740 | ||||||||
| Depreciation & amortization | 1,774 | 1,617 | 7,131 | 6,777 | ||||||||
| Unrealized (gain) loss on foreign exchange forward contracts | 16 | (34 | ) | (57 | ) | (71 | ) | |||||
| Fair value (gain) loss on the embedded option | – | 315 | (1,657 | ) | 979 | |||||||
| (Gain) loss on foreign exchange | 138 | (1,070 | ) | 261 | (1,387 | ) | ||||||
| Share-based compensation expense | 229 | 302 | 1,171 | 1,277 | ||||||||
| Impact of IFRS 16 – Leases | (651 | ) | (640 | ) | (2,574 | ) | (2,559 | ) | ||||
| Adjusted EBITDA | $ | 4,194 | $ | 4,885 | $ | 11,324 | $ | 14,318 | ||||
Call Details
A conference call to discuss Swiss Water’s recent financial results will be held on Monday, March 16, 2026, 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: 597453. If a listener does not have this code, they can reference the Company name as an alternative passcode.
A replay will be available through Monday, March 30, 2026, at
- 1-877-481-4010 (toll-free) or
- 1-919-882-2331 (international); replay passcode: 53539
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: 1-604-420-4050
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 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.
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, 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, 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.
