- Shares in Swiss Water Decaffeinated Coffee (SWP) have taken a dive today after the company reported a major slide in quarterly earnings
- For the three months ending September 30, 2020, net income fell to C$106,000 compared to $884,000 in the same period last year
- The decline reflects a similar result in gross profit, which fell to $3.43 million this year from almost $4.74 million in 2019
- However, revenue remained strong due to increasing coffee quality differentials and higher freight revenue
- Swiss Water Decaffeinated Coffee (SWP) is currently down 10.54 per cent to $2.63 per share
Shares in Swiss Water Decaffeinated Coffee (SWP) have taken a dive today after the company reported a major slide in quarterly earnings.
For the three months ending September 30, 2020, the Vancouver-based specialty coffee company saw net income fall to roughly C$106,000 compared to around $884,000 in the same period last year.
The decline represents a negative change in gross profit – which fell from almost $4.74 million in 2019 to $3.43 million this year – along with the impact of operating expenses – which increased by approximately $400,000 to a total of $2.8 million.
These results come despite relatively stable revenue, which grew five per cent over the quarter from $23.6 million last year to more than $24.8 million. Swiss Water said this was largely due to increasing coffee quality differentials, higher freight revenue, and changes in customer mix that resulted in slightly higher process revenue.
Frank Dennis, President and CEO of Swiss Water, was pleased to report that the company’s volumes have remained resilient, despite the ongoing trading challenges resulting from the COVID-19 pandemic.
“Given our strong competitive position, the positive macro trends driving our business and the strength of the Swiss Water brand, we remain confident about the longer term prospects for our business,” he added.
The company is now looking to resume its strong growth trajectory that had been achieved prior to the onset of the pandemic. This includes the recent commissioning of a new production line at its facility in Delta, British Columbia, and the financing, design, and construction of a second line scheduled for completion by June 2023.
Swiss Water Decaffeinated Coffee (SWP) is currently down 10.54 per cent to $2.63 per share at 2:36pm EST.
