Swiss Water Decaffeinated Coffee (SWP) investor relations material

Executive summary

• Q1 2026 saw solid operational and financial performance despite a 10-day production line outage in January, which was quickly resolved, allowing the facility to operate at or near full capacity for the rest of the quarter.

• Customer demand is rebounding, with order books nearly full for Q2 and bookings extending into late summer, indicating improved market visibility compared to last year.

• The removal of tariffs that impacted 2025 has reduced uncertainty, and the company is working to recover and return paid tariffs to customers.

• The decaf coffee market is expanding, driven by consumer health trends and a shift toward chemical-free processes, positioning the company well for future growth.

• Net income rose to CAD 1.4 million, up from CAD 515,000 in Q1 2025, with adjusted EBITDA increasing by CAD 2.3 million to CAD 4.3 million.

Financial highlights

• Q1 revenue was CAD 57.5 million, down 8% year-over-year, primarily due to lower NYC coffee prices.

• Gross profit rose 9% to CAD 7.9 million, and net income increased to CAD 1.4 million from CAD 515,000 in Q1 2025.

• Adjusted EBITDA more than doubled to CAD 4.3 million, up 113% year-over-year.

• Cost of sales decreased 10% to CAD 49.5 million, reflecting lower green coffee costs.

• Earnings per share (basic and diluted) were CAD 0.14, compared to CAD 0.05 in Q1 2025.

Outlook and guidance

• Strong Brazilian harvest forecasts and easing NYC price inversion are expected to further stabilize the market and support customer restocking.

• The company is nearly fully booked for Q2 and is seeing bookings into late summer, providing good visibility for the remainder of the year.

• Plans are in place to expand capacity with limited capital expenditure as demand grows.

• Increased direct-to-consumer marketing is planned for the back half of the year.

• Focus remains on supporting customers, reducing leverage, and pursuing growth opportunities as market conditions normalize.