Canada's Swiss Water Decaffeinated Coffee Q3 revenue rises on higher volumes
Overview
Canada specialty coffee decaffeinator's Q3 revenue rose 5% yr/yr on higher processed volumes
Q3 net income increased, driven by higher gross profit and lower finance expenses
Company began share buyback and announced 15% capacity expansion for 2027
Outlook
Company expects 15% production capacity increase by June 2027
Company says current capacity sufficient for short-term growth; expansion targets medium-term demand
Company notes low spot availability of green coffee and ongoing market inversion
Result Drivers
HIGHER VOLUMES - Co said increased processed volumes and strong demand drove Q3 results
INVERSION EXPENSE RECOVERY - Improved recovery of inversion expenses contributed to Q3 revenue growth
SCALE EFFICIENCIES - Co said scale efficiencies, including labour and utility savings, boosted gross profit
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | C$65.88 mln | ||
Q3 Net Income | C$937,000 | ||
Q3 Adjusted EBITDA | C$4.93 mln | ||
Q3 Gross Profit | C$10.01 mln | ||
Q3 Operating Income | C$4.33 mln | ||
Q3 Pretax Profit | C$975,000 |
Analyst Coverage
Wall Street's median 12-month price target for Swiss Water Decaffeinated Coffee Inc is C$10.00, about 11.2% above its November 2 closing price of C$8.99
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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.)