Swiss Water Reports Strong Second Quarter 2026 Results and Intention to Launch Share Buyback under an NCIB

VANCOUVER, British Columbia, Aug. 05, 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 and six months ended June 30, 2026. All amounts are expressed in Canadian dollars unless otherwise stated.

Second Quarter 2026 Highlights

All comparisons are with the second quarter of 2025:

Q2’26 processed volumes increased 17%;
Revenue of $66.0 million, a decrease of 3%, due to reduced NY’C’ coffee futures prices;
Net income of $1.9 million, an increase of $2.3 million;
Adjusted EBITDA of $5.3 million, an increase of $3.5 million or 191%;
Repayment of $8.9 million of debt and a 17% reduction in interest expense;
Production facility operating at very high-capacity utilization;
Company files notice of intention to launch a Normal Course Issuer Bid (“NCIB”) to repurchase Company shares.

Year to Date 2026 Highlights

All comparisons are with the six months ended June 30, 2025:

Year to date processed volumes increased 8%;
Revenue of $123.4 million, a decrease of 5%;
Net income of $3.3 million, an increase of $3.1 million;
Earnings Per Share (“EPS”) of $0.34, an increase of $0.33;
Adjusted EBITDA of $9.6 million, an increase of $5.8 million or 151%;
Latest twelve month (“LTM”) Adjusted EBITDA at $17.1 million and LTM EPS of $0.49;
Repayment of $15.3 million of debt year-to-date, comprised of $12.5 million of Operating Facilities and $2.8 million of Construction Loan.

“The second quarter delivered exceptionally strong volume growth, driven by a sharp intensification in customer ordering, despite continued volatility in the global coffee market. Our strong forward order book gives us the confidence this momentum will carry through the back half of the year. That demand is showing up across the business, our facilities are running at very high-capacity utilization, and pricing tied to inversion recovery is holding firm. Together, these dynamics drove our fourth consecutive quarter of profitability improvement, and we closed the quarter with our LTM Adjusted EBITDA exceeding $17 million for the first time in our history. This strong performance has led to improved cash flow and is enabling solid debt reduction”, said Frank Dennis, CEO of Swiss Water.

“With this momentum and rapidly improving balance sheet, we’re well positioned heading into 2027. Given this improving outlook, we intend to seek TSX approval for a share repurchase program under a NCIB. We believe that our share price could be undervalued over the upcoming year based on our financial performance and future prospects, and that repurchasing shares is an appropriate use of funds to increase shareholder value”, added Dennis.

Summary of Operational Performance

Total processing volumes in pounds for the three and six months ended June 30, 2026, increased by 17% and 8% when compared to the same periods in 2025.
Elevated demand is driving high-capacity utilization in 2026, and adequate production capacity remains to support growth in the short-term. Targeted incremental investments have been identified to ensure anticipated medium-term demand can be met.
The NY’C’ coffee futures price for Arabica coffee peaked at US$3.00/lb, before falling back to a low of $2.96/lb. Spot availability of green coffees remains low, and the futures market remained inverted during the second quarter of 2026.
Throughout 2025, Swiss Water was affected 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 June 30								6 months ended June 30
except for per share amounts		2026		2025		$ Change		% Change		2026		2025		% Change		% Change
Revenue		65,971		67,695		(1,724	)	-3	%	123,423		129,967		(6,544	)	-5	%
Cost of sales		(55,793	)	(62,447	)	6,654		-11	%	(105,332	)	(117,432	)	12,100		-10	%
Gross profit		10,178		5,248		4,930		94	%	18,091		12,535		5,556		44	%
Operating expenses		(5,893	)	(3,864	)	(2,029	)	53	%	(10,192	)	(7,253	)	(2,939	)	41	%
Operating income		4,285		1,384		2,901		210	%	7,899		5,282		2,617		50	%
Non-operating or other		(1,104	)	(2,005	)	901		-45	%	(2,804	)	(5,232	)	2,428		-46	%
Income tax recovery (expense)		(1,273	)	247		(1,520	)	-615	%	(1,807	)	91		(1,898	)	-2086	%
Net income (loss)		1,908		(374	)	2,282		610	%	3,288		141		3,147		2232	%

Adjusted EBITDA	⁽¹⁾	5,323		1,828		3,495		191	%	9,610		3,836		5,774		151	%
Earnings (loss) per share	⁽²⁾
Basic and diluted		0.20		(0.04	)					0.34		0.01
Diluted		0.20		(0.10	)					0.34		(0.16	)

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 and any outstanding warrants.

Revenue for the three and six months ended June 30, 2026, was $66.0 million and $123.4 million, which represents a $1.7 million or 3% and a $6.5 million or 5% decrease when compared to the same periods in 2025. The decrease was primarily driven by lower NY’C’ coffee futures prices and reduced tariff costs charged back to customers, partially offset by the increase in volumes.
Gross profit for the three and six months ended June 30, 2026, was $10.2 million and $18.1 million, which represents a $4.9 million or 94% and a $5.6 million or 44% increase, when compared to the same periods in 2025. The increase was driven by volume growth, improved recovery of inversion expenses, scale efficiencies such as direct labour efficiencies, lower utility usage and rates. Also, better foreign exchange rates associated with the depreciating US$ when compared to Q2 2025.

For the three and six months ended June 30, 2026, we recorded net income after taxes of $1.9 million and $3.3 million, compared to a net loss after taxes of $0.4 million and net income after taxes of $0.1 million for the same period in 2025. The increase was primarily driven by the improvement in gross profit, as described above, and significantly reduced losses on risk management activities, as the NY’C’ futures market is less inverted when compared to the same periods 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 2025 gain on fair value of the embedded option. There was no such revaluation gain in 2026 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 June 30						6 months ended June 30
		2026			2025			2026			2025
Net income (loss)	$	1,908		$	(374	)	$	3,288		$	141
Income tax (recovery) expense		1,273			(247	)		1,807			(91	)
Income (loss) before income tax	$	3,181		$	(621	)	$	5,095		$	50
Finance income		(442	)		(362	)		(820	)		(740	)
Finance expense		1,405			1,702			2,829			3,420
Depreciation		1,912			1,850			3,767			3,628
Unrealized (gain) loss on foreign exchange forward contracts		99			54			(117	)		71
Fair value gain on the embedded option		-			(546	)		-			(1,657	)
(Gain) loss on foreign exchange		(926	)		110			(886	)		269
Share-based compensation expense		871			275			1,212			67
Impact of IFRS 16 - Leases		(777	)		(634	)		(1,470	)		(1,272	)
Adjusted EBITDA	$	5,323		$	1,828		$	9,610		$	3,836

Call Details

A conference call to discuss Swiss Water’s recent financial results will be held on Thursday, August 6, 2026, at 1:00 pm Pacific (4:00 pm Eastern). To access the conference call, please dial:

1-888-506-0062 (toll-free) or
1-973-528-0011 (international);
Listeners will be prompted to provide an access code: 606736. 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, August 20, 2026, at

1-877-481-4010 (toll-free) or
1-919-882-2331 (international); replay passcode: 54258

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).

Normal Course Issuer Bid (“NCIB”)

Swiss Water announces today that its Board of Directors has authorized the launch of an NCIB to purchase up to approximately 650,000 of its common shares ("Common Shares"), representing approximately 9.7% of its outstanding Common Shares in the public float as of August 5, 2026. The NCIB is subject to the approval of the Toronto Stock Exchange.

Swiss Water is undertaking the NCIB because its management believes that from time to time, the market price of its Common Shares may not reflect the underlying value of the Company's business and future prospects. Management believes that, in such circumstances, purchasing Common Shares for cancellation would be in the best interests of the Company's shareholders and represents an appropriate use of its capital.

Management believes it has sufficient cash flow and financial resources to fund the purchases under the NCIB without impairing its ability to pursue growth opportunities, meet its financial obligations, or otherwise operate in the ordinary course. Accordingly, management considers the bid to be a prudent and efficient use of capital.

Any purchases made under the NCIB will be conducted through the facilities of the TSX and/or alternative Canadian trading systems at prevailing market prices and in accordance with applicable securities laws and TSX requirements.

Although the Company presently intends to purchase Common Shares under its NCIB, there can be no assurances that any such purchases will be completed. Swiss Water has not repurchased any of its Common Shares during the twelve months preceding the date hereof.

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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