Canada's Swiss Water Q1 revenue falls on lower coffee prices

Swiss Water Decaffeinated Coffee

06/05/2026 21:59

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.)