2021 First Quarter Financial and Operational Highlights
- Quarterly revenue was
$25.7 million , an increase of 18%, or$3.9 million , when compared to the same period in 2020. - Quarterly processing volumes were up by 14% year over year.
- The company’s European business recovered strongly with volumes up by 275% compared to Q1 last year. Business in
North America andAsia Pacific reported volume growth of 4% and 11% respectively during the quarter. - First quarter EBITDA increased to
$2.7 million from$2.6 million last year. - As expected, for the three months ended
March 31, 2021 , both operating income and net income decreased to$0.7 million and a loss of$0.1 million respectively, when compared to the first quarter of 2020. The changes were due to additional depreciation, incremental production costs following the commissioning of our newDelta manufacturing facility, and non-cash stock based compensation expenses. - Swiss Water’s new
Delta, B.C. production facility is running 24/7, and commercial shipments from this location continue to increase. The product quality performance from this line is very good.
“We are pleased to report that our volumes continued to prove resilient, despite the ongoing trading challenges resulting from the COVID-19 pandemic, and that all our trading regions reported strong growth during the first quarter of 2021. It was particularly encouraging to see our European business deliver 275 percent growth compared to the first quarter of last year,” said
Operational Highlights
The following table shows changes in volumes during the first quarter ended
Volumes | 3 months ended | Year ended |
Change in total volumes | 14% | -6% |
By customer type | ||
Roasters | 3% | -4% |
Importers | 34% | -8% |
Specialty | 19% | -1% |
Commercial | 10% | -8% |
- Total volumes in the first quarter of 2021 improved by 14% compared to the same period last year. Across all geographical markets, many of the company’s customers are starting to experience growing consumer demand and are beginning to plan for trading activity closer to pre-pandemic levels. Encouragingly, Swiss Water recorded 4% and 11% volume growth in its
North America andAsia Pacific regions respectively during the quarter. InEurope , volumes increased by an impressive 275%. - As in the past, Swiss Water’s largest geographical market by volume in Q1 continued to be
the United States , followed byCanada ,Europe and other international markets. By dollar value, for the three months endedMarch 31, 2021 , 43% of sales were to customers inthe United States , 33% were toCanada , and the remaining 24% were to other countries. - In
September 2020 , Swiss Water successfully completed its first production run of commercial-grade coffee from its newDelta, B.C. facility. During the first quarter, a significant portion of production volume was transitioned toDelta , reducing some of the pressure on the company’s legacy production assets inBurnaby, B.C. TheDelta facility is now running smoothly on a 24/7 basis. - Swiss Water’s operations were deemed essential services at the outset of the pandemic, and as such, the company continued to supply decaffeinated coffee to food manufacturers and retailers who support consumers around the world throughout the first quarter. To protect all stakeholders, Swiss Water has maintained best health practices and social distancing at all its production facilities, warehouses and offices as recommended by the appropriate health authorities.
Financial Highlights
In $000’s except per share amounts | 3 months ended | |||||||
(unaudited) | 2021 | 2020 | ||||||
Sales | $ | 25,692 | $ | 21,817 | ||||
Gross profit | 3,552 | 4,206 | ||||||
Operating income | 738 | 2,035 | ||||||
Net (loss) income | (96) | 1,448 | ||||||
EBITDA1 | 2,689 | 2,640 | ||||||
EBITDA excluding IFRS 16-Leases2 | 1,987 | 1,981 | ||||||
Net (loss) income per share – basic3 | $ | (0.01) | $ | 0.16 | ||||
Net (loss) income per share – diluted3 | $ | (0.01) | $ | 0.02 |
1 EBITDA is defined in the ‘Non-IFRS Measures’ section of the MD&A and is a “Non-GAAP Financial Measure” as defined by CSA Staff Notice 52-306.
2 EBITDA excluding the impact of IFRS 16 - Leases is defined as EBITDA, less lease payments made during the year.
3 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 conversion of convertible debt and RSUs as well as the impact on earnings from changes in the fair market value of the embedded option in the convertible debt and conversion of RSUs.
- Revenue increased by
$3.9 million to$25.7 million for the three months endedMarch 31, 2021 . Volume growth and higher green coffee prices in the quarter contributed positively to the growth in revenue.- First quarter EBITDA was
$2.7 million , an increase of$0.1 million , or 2%, when compared to last year. Quarterly EBITDA, excluding the impact of IFRS 16, was$2.0 million , the same as in 2020. EBITDA this year was driven by revenue growth and an increased financial contribution from the company’sSeaforth coffee handling and storage subsidiary. These positive impacts were offset by an increase in green coffee costs and softer coffee quality differentials compared to the same period in 2020.
- First quarter EBITDA was
Company Profile
Additional Information
A conference call to discuss Swiss Water’s recent financial results will be held tomorrow,
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 (www.sedar.com) and the company’s website (investor.swisswater.com).
For more information, please contact:
Phone: 604.420.4050
Email: investor-relations@swisswater.com
Website: investor.swisswater.com
Forward-Looking Statements
Certain statements in this press release may constitute “forward-looking” statements which involve known and unknown risks, uncertainties and other factors which 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” and other similar terminology. These statements reflect management’s current expectations regarding future events and operating performance, as well as management’s current estimates, but 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, general industry conditions, commodity price risks, technology, competition, foreign exchange rates, construction timing, costs and financing of capital projects, a potential impact of the COVID-19 pandemic, 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 herein.
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