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Specialty coffee company and green coffee decaffeinator Swiss Water has reported Q3 financial results for 2024.
The Canadian company reported a 27 per cent increase in total sales in the third quarter and a 4 per cent increase for the year-to-date, when compared to the same time last year.
According to Swiss Water, the year-over-year differences were expected, as the volumes reported in Q3 last year were lower than normal due to capacity constraints as the company consolidated its operations to one location.
Third quarter gross profit was reported at US$6.4 million, which was up by $2.9 million at the same time last year. For the nine months, gross profit was $19.2 million, up by $7.3 million from the same period in 2023.
Gross margin percentage was 15 per cent for the quarter and 16 per cent for the year-to-date, compared to 11 per cent and 10 per cent respectively for the same time last year.
According to the company, the improvements were driven by higher processing volumes, cost savings associated with the consolidation of operations at one location, lower utility rates, and a decrease in one-time depreciation expenses.
In 2023, Swiss Water incurred a $2.5 million one-time depreciation cost related to the shuttering of its legacy Burnaby production facility.
Net losses for the three and nine months ended 30 September 2024 were $0.8 million and $0.7 million respectively, compared to net losses of $0.4 million and $1.5 million for the same periods in 2023.
“We are pleased to report that we delivered volume growth and improved profitability during the third quarter. Total volume grew by 27 per cent, and adjusted EBITDA increased by 40 per cent, when compared to Q3 last year,” says Frank Dennis, Swiss Water’s President and CEO.
“Looking forward, interest in chemical-free decaffeinated coffee remains high and we are optimistic about the future. However, the NY’C’ coffee commodity price remained close to an historic peak during the third quarter and evidence is starting to emerge that this is negatively impacting consumer consumption of coffee, roaster demand and importer inventories. If futures prices remain at elevated levels and backward dated, this may have a negative impact on our volume growth in 2024 and into next year.”
The post Swiss Water reports increase in total sales for Q3 appeared first on Global Coffee Report.
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