Canada's Swiss Water Decaffeinated Coffee Q4 revenue jumps on higher commodity prices
Overview
Canada specialty coffee decaffeinator's Q4 revenue rose 34% yr/yr, driven by higher commodity prices
Q4 net income declined 40% due to lower volumes and increased risk management losses
Adjusted EBITDA for Q4 fell 14% from a year earlier
Outlook
Company expects recovery of 2025 inversion costs to continue in 2026
Swiss Water sees early signs of improved purchasing as market conditions begin to normalize
Company expects movement toward normalized buying patterns to be slow
Result Drivers
HIGHER COFFEE PRICES - Co said Q4 revenue growth was mainly driven by higher NY’C’ coffee commodity prices
LOWER VOLUMES & RISK MANAGEMENT LOSSES - Co said Q4 net income fell mainly due to lower volumes and increased losses on risk management activities
Company press release: ID:nGNX3QXjSH
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q4 Revenue |
| C$66 mln |
|
Q4 Net Income |
| C$1.2 mln |
|
Q4 Adjusted EBITDA |
| C$4.2 mln |
|
Q4 Gross Profit |
| C$8 mln |
|
Q4 Operating Income |
| C$4.6 mln |
|
Analyst Coverage
Wall Street's median 12-month price target for Swiss Water Decaffeinated Coffee Inc is C$6.10, about 35% above its March 10 closing price of C$4.52
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