Canada's Swiss Water Decaffeinated Coffee Q3 revenue rises on higher volumes

By Reuters News


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


Reuters Recommended Reads

  • Nov 2 - Coffee seller BRC Q3 revenue beats on wholesale strength

  • Nov 2 - Fish farmer Bakkafrost Q3 operational EBIT rises on FOF segment growth


For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.


(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.)

Capital.com is an execution-only brokerage platform and the content provided on the Capital.com website is intended for informational purposes only and should not be regarded as an offer to sell or a solicitation of an offer to buy the products or securities to which it applies. No representation or warranty is given as to the accuracy or completeness of the information provided.

The information provided does not constitute investment advice nor take into account the individual financial circumstances or objectives of any investor. Any information that may be provided relating to past performance is not a reliable indicator of future results or performance.

To the extent permitted by law, in no event shall Capital.com (or any affiliate or employee) have any liability for any loss arising from the use of the information provided. Any person acting on the information does so entirely at their own risk.

Any information which could be construed as “investment research” has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication.