In This Article:
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Volume Growth: Total volume grew by 27% in Q3 and 4% year-to-date.
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Adjusted EBITDA: Increased by 40% in Q3 and 13% year-to-date.
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Revenue: Q3 revenue was $41.8 million, up by $9.2 million from last year; 9-month revenue was $123.9 million, down by $1.2 million from 2023.
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Gross Profit: Q3 gross profit was $6.4 million, up 80%; year-to-date gross profit was $19.2 million, up 62%.
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Gross Margin Percentage: Increased from 10% to 16% year-to-date.
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Operating Income: Q3 operating income was $2.8 million, up from $758,000 last year; 9-month operating income was $7.9 million, up from $2.3 million.
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Net Loss: Q3 net loss was $791,000; year-to-date net loss was $744,000, improved from $1.5 million last year.
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Cost of Sales: Q3 cost of sales was $35.3 million, up 22%; year-to-date cost of sales was $104.7 million, down 8%.
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Operating Expenses: Q3 operating expenses were $3.6 million, up by $900,000; year-to-date operating expenses were $11.3 million, up by $1.7 million.
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Net Finance Costs: Q3 net finance costs were $1.8 million, unchanged; year-to-date finance costs were $5.5 million, up 14%.
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Inventory Value: Increased to $38 million at the end of Q3 from $28.8 million at the end of Q2.
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Debt Repayment: Paid down a total of $60 million of debt obligations since Q3 2023.
Release Date: November 06, 2024
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Swiss Water Decaffeinated Coffee Inc (SWSSF) reported a 27% increase in total volume and a 40% rise in adjusted EBITDA compared to Q3 of the previous year.
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The consolidation of operations into a single location has resulted in significant efficiencies and cost savings, boosting gross profit by 80% in the quarter.
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Gross margin percentage improved from 10% in the first nine months of last year to 16% this year.
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The company successfully reduced its debt by $60 million, including a $15.9 million repayment to Mill Road Capital.
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Interest in chemical-free decaffeinated coffee remains high, with growing demand and a strong brand positioning Swiss Water Decaffeinated Coffee Inc (SWSSF) well for future growth.
Negative Points
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Despite improved gross margins, the company reported a net loss of $791,000 for the quarter, impacted by higher interest expenses and increased mark-to-market losses.
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The high NYC coffee futures price is negatively affecting consumer coffee consumption and roaster demand, potentially impacting volume growth.
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Persistent disruptions in the coffee supply chain, including logistics delays and labor disputes, have created challenges in meeting customer commitments.
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Operating expenses increased by $900,000 in Q3, driven by planned headcount wage increases and higher professional fees.
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The company faces macroeconomic risks such as inflation and geopolitical uncertainties, which could impact future performance.