Swiss Water Reports First Quarter 2026 Results

VANCOUVER, British Columbia, May 06, 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 ended March 31, 2026. All amounts are expressed in Canadian dollars unless otherwise stated.

First Quarter 2026 Performance

Q1’26 processed volumes decreased 2% compared to Q1’25, in part due to a 10-day unplanned downtime on one production line in January;
Revenue of $57.5 million, a decrease of 8% over Q1’25, due to reduced NY’C’ coffee futures prices;
Net income of $1.4 million, an increase of $0.9 million compared to Q1’25;
Adjusted EBITDA of $4.3 million, an increase of $2.3 million compared to Q1’25;
The NY’C’ coffee futures price for Arabica coffee declined during Q1’26 compared to prior quarters, peaking at US$3.75/lb in January, and declining to US$2.98/lb at the end of the quarter;
Repayment of $6.4 million of debt in Q1’26, and a 17% reduction in interest expense over Q1’25.

“We’re starting to see encouraging signs that volatility in the global coffee market is easing. Forecasts are pointing to a record Brazilian harvest, the inverted futures curve is narrowing, and the NY’C’ coffee futures price has fallen back from the record highs we saw in 2025. In that context, we delivered a solid first quarter. We ran our facilities at high-capacity utilization, stayed disciplined on cost controls, and delivered a meaningful increase in profitability compared to Q1 last year. Importantly, customer ordering remained strong throughout the quarter, with roasters restocking their pipelines and extending booking visibility into the back half of the year,” said Frank Dennis, CEO of Swiss Water.

“Process volumes were down year over year, largely due to a 10-day unplanned downtime on one line in January. Without it, we are confident we would have delivered strong volume growth. Despite this, adjusted EBITDA increased, driven by significantly lower inversion expenses and improved inversion cost recovery. We continued to strengthen our balance sheet during the quarter, repaying $6.4 million of debt, comprised of $5.0 million of our Operating Credit Facility and $1.4 million of our Construction Loan as our scheduled principal payment. In addition, we have reduced our quarterly interest expense by 17%, or $0.3 million, compared to Q1 2025. On May 4, 2026, the Operating Credit Facility maturity date was renewed and extended by one year until June 2028. As market conditions continue to normalize, we’re focused on supporting our customers, building on the strong foundation we have established, and continuing to reduce leverage while pursuing the growth opportunities ahead,” Dennis added.

Summary of Operational Performance

Total processing volumes in pounds for the three months ended March 31, 2026, decreased by 2% when compared to the same period in 2025.
The NY’C’ coffee futures price for Arabica coffee peaked at US$3.75/lb, before falling back to a low of $2.98/lb. Spot availability of green coffees remains low, and the futures market remained inverted during the first quarter of 2026.
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.

Summary of Financial Results

In C$ ‘000s		3 months ended March 31
except for per share amounts		2026		2025		% Change		% Change
Revenue		57,452		62,272		(4,820	)	-8	%
Cost of sales		(49,539	)	(54,985	)	5,446		-10	%
Gross profit		7,913		7,287		626		9	%
Operating expenses		(4,299	)	(3,389	)	(910	)	27	%
Operating income		3,614		3,898		(284	)	-7	%
Non-operating or other		(1,700	)	(3,227	)	1,527		-47	%
Income tax expense		(534	)	(156	)	(378	)	242	%
Net income		1,380		515		865		168	%

Adjusted EBITDA	⁽¹⁾	4,287		2,008		2,279		113	%
Earnings (loss) per share	⁽²⁾
Basic and diluted		0.14		0.05
Diluted		0.14		(0.06	)

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 three months ended March 31, 2026, was $57.5 million, which represents a $4.8 million or 8% decrease when compared to the same period in 2025. The decrease was primarily driven by lower NY’C’ coffee futures prices and lower volume, partially offset by increased activity within the Company’s storage and distribution business.
Gross profit for the three months ended March 31, 2026, was $7.9 million, which represents a $0.6 million or 9% increase when compared to the same period in 2025. The increase was driven by direct labour efficiencies, lower utility usage, and improved inversion cost recovery, partially offset by foreign exchange losses associated with the depreciating US$ and lower volume.
For the three months ended March 31, 2026, we recorded net income after tax of $1.4 million, compared to a net income after tax of $0.5 million for the same period in 2025. The increase was primarily driven by the improvement in gross profit, as described above, and reduced losses on risk management activities, as the NY’C’ futures market is less inverted when compared to the same period in 2025. This was partially offset by increased operating expenses driven mainly by an increase in non-cash share-based compensation due to a higher share price, and the Q1’25 gain on fair value of the embedded option. There was no such revaluation gain in Q1’26 as the warrants were repurchased in 2025.

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 March 31
		2026			2025
Net income	$	1,380		$	515
Income tax expense		534			156
Income before income tax	$	1,914		$	671
Finance income		(378	)		(378	)
Finance expense		1,424			1,718
Depreciation		1,855			1,778
Unrealized (gain) loss on foreign exchange forward contracts		(216	)		17
Fair value gain on the embedded option		-			(1,111	)
Loss on foreign exchange		40			159
Share-based compensation expense (recovery)		341			(208	)
Impact of IFRS 16 - Leases		(693	)		(638	)
Adjusted EBITDA	$	4,287		$	2,008

Call Details

A conference call to discuss Swiss Water’s recent financial results will be held on Thursday, May 7, 2026, at 1:00 pm Pacific (4:00 pm Eastern). To access the conference call, please dial:

1-877-545-0523 (toll-free) or
1-973-528-0016 (international);
Listeners will be prompted to provide an access code: 823668. If a listener does not have this code, they can reference the Company name as an alternative passcode.

A replay will be available through Thursday, May 21, 2026, at

1-877-481-4010 (toll-free) or
1-919-882-2331 (international); replay passcode: 53901

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.

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