Swiss Water Decaffeinated Coffee (SWP) investor relations material

Executive summary

• Achieved stable performance amid market volatility, supported by strong execution and a diversified customer base across North America and international markets.

• Q2 2025 revenue rose 56% year-over-year to $67.7M, with stable processed volumes and a net loss of $0.4M, down $1.3M from Q2 2024.

• Strategic inventory positioning enabled quick response to customer needs and development of new relationships.

• Profitability impacted by hedge losses, US dollar depreciation, higher production and maintenance costs, and tariff changes.

• Operational momentum supported by consolidated production and strong customer demand.

Financial highlights

• Q2 revenue rose 56% year-over-year to $67.7M, driven by NYC coffee price effects, inversion and tariff cost recovery, customer mix, and improved logistics subsidiary revenue.

• Q2 cost of sales increased 75% year-over-year to $62.4M, mainly due to elevated NYC, maintenance, labor, and tariff costs.

• Q2 gross profit was $5.2M, down 32% year-over-year; gross margin fell to 8% from 18% last year.

• Q2 net loss of $0.4M compared to net income of $0.9M in Q2 2024, impacted by risk management losses and market inversion.

• Q2 adjusted EBITDA was $1.8M, down 59% year-over-year, with losses expected to be recovered through pricing.

Outlook and guidance

• Expecting continued market inversion and volatility into 2026, but anticipate recovery of inversion costs through pricing.

• Management expects the Q2 industry volatility to be temporary and anticipates reversal in the remainder of the year.

• Revised pricing initiatives are expected to recover incremental hedge losses over the rest of 2025.

• Remain confident in ability to navigate market challenges with disciplined execution and strategic inventory management.

• Higher coffee prices and inverted futures market may soften consumer demand and shipment volumes.