Swiss Water Decaffeinated Coffee (SWP) investor relations material

Executive summary

• Delivered solid results in a volatile 2025, with processed volumes up 2% for the year despite a small Q4 decline, reflecting disciplined execution and organizational resilience.

• Revenue increased meaningfully year-over-year, primarily due to elevated coffee prices and continued customer demand for chemical-free decaffeination.

• Operational consistency maintained at the Delta facility, with both production lines at steady state and ongoing process optimization.

• Strategic inventory positioning enabled reliable service amid industry-wide volatility and tariff disruptions.

Financial highlights

• Q4 revenue rose 34% to CAD 66 million; full year revenue up 49% to CAD 258.7 million, driven by higher coffee prices and increased volume.

• Q4 net income was CAD 1.2 million (down from CAD 2 million YoY); full year net income was CAD 1.6 million (up from CAD 1.3 million YoY).

• Q4 Adjusted EBITDA was CAD 4.2 million (down 14% YoY); full year Adjusted EBITDA was CAD 11.3 million (down 21% YoY), mainly due to risk management losses.

• Gross profit for Q4 was CAD 8.0 million, up 15%; full-year gross profit was CAD 27.0 million, up 3% YoY.

• Earnings per share for the year were CAD 0.13 (basic and diluted).

Outlook and guidance

• Early 2026 shows signs of normalization: coffee futures prices have declined, market inversion has flattened, and purchasing activity is improving.

• Inventory discipline expected to persist, but a more normalized market structure is constructive for medium-term volume growth.

• Recovery of 2025 market inversion costs will continue into 2026.

• Focus remains on supporting customers, optimizing operations, and leveraging financial flexibility for sustainable growth.