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VANCOUVER, British Columbia, Canada – Swiss Water Decaffeinated Coffee Inc., a leading specialty coffee company and premium green coffee decaffeinator, today reported financial results for the three months ended March 31, 2025. All amounts are expressed in Canadian dollars unless otherwise stated.
“We entered 2025 with solid momentum, delivering volume growth and steady execution despite continued volatility in the coffee market,” said Frank Dennis, CEO of Swiss Water.
“Customer demand remained healthy, and we added new accounts while maintaining strong operational performance across our platform.
As expected in an inverted market, some of our hedge positions resulted in timing-related losses as contracts were rolled forward and negatively impacted Adjusted EBITDA. However, revised pricing initiatives are in place, and we expect to fully recover any incremental hedge losses incurred this year.
These changes reflect the mechanics of managing risk in a complex pricing environment. We also made a strategic decision to increase inventory levels to support anticipated volume and ensure product availability for our customers.
Looking ahead, while we expect some ongoing variability in ordering patterns due to price sensitivity, tariffs and broader macroeconomic pressures, we remain confident in the strength of our business and our ability to serve customers reliably in a complex market.”
Swiss Water: First Quarter 2025 Highlights
- Q1’25 processed volumes grew 6% over Q1’24;
- Revenue of $62.3 million, an increase of 61% over Q1’24;
- Gross Profit of $7.3 million, an increase of 42% over Q1’24;
- Net Income of $0.5 million, an increase of $1.4 million over Q1’24;
- Adjusted EBITDA of $2.0 million, a decrease of 28% versus Q1’24;
- The NY’C’ coffee futures price for Arabica coffee remained volatile during Q1’25, peaking at US$4.25/lb in February. During Q1’25, the NY’C’ averaged US$3.73/lb, compared to an average of US$1.90/lb in Q1’24, an increase of 97%.
On April 2, 2025, the US administration announced the implementation of a 10% tariff on most imports from a broad range of countries, effective April 5, 2025.
While imports of coffee beans into Canada remain unaffected, coffee exported from Canada to the United States that retain their original country-of-origin designation are now subject to this new tariff structure. These tariff rules and classifications also apply to Swiss Water’s competitors based outside Canada.
This development introduces additional cost pressures on Swiss Water’s U.S.-bound shipments. From Q2’25 Swiss Water will include any tariff charges it incurs on shipments on the invoice to its US customers. The Company is evaluating the negative impact that higher prices may have on customer purchasing behaviour going forward.
