Overview
Canada specialty coffee decaffeinator's Q1 revenue fell 8% yr/yr due to lower coffee prices
Net income for Q1 rose 168% yr/yr, driven by improved gross profit and lower risk management losses
Adjusted EBITDA for Q1 more than doubled, supported by cost controls and inversion cost recovery
Outlook
Company says coffee market volatility is easing, with forecasts for a record Brazilian harvest
Swiss Water says customer ordering remains strong, with booking visibility into the back half of yr
Company focused on supporting customers, reducing leverage and pursuing growth as conditions normalize
Result Drivers
LOWER COFFEE PRICES AND VOLUMES - Revenue fell due to lower NY'C' coffee futures prices and a 2% decrease in processed volumes, partly from a 10-day unplanned downtime
COST EFFICIENCIES AND INVERSION COST RECOVERY - Improved gross profit and adjusted EBITDA were driven by direct labour efficiencies, lower utility usage, and improved inversion cost recovery
REDUCED RISK MANAGEMENT LOSSES - Net income rose due to lower losses on risk management activities as the NY’C’ futures market was less inverted
Company press release: ID:nGNX2DR4ZD
Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q1 Revenue
C$57.45 mln
Q1 Net Income
C$1.38 mln
Q1 Adjusted EBITDA
C$4.29 mln
Q1 Gross Profit
C$7.91 mln
Q1 Operating Income
C$3.61 mln
Q1 Pretax Profit
C$1.91 mln
Analyst Coverage
Wall Street's median 12-month price target for Swiss Water Decaffeinated Coffee Inc is C$6.10, about 20.6% above its May 5 closing price of C$5.06
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)