Swiss Water Reports Continued Momentum With Third Quarter 2026 Results

(MENAFN- GlobeNewsWire - Nasdaq) VANCOUVER, British Columbia, Nov. 03, 2026 (GLOBE NEWSWIRE) -- Swiss Water Decaffeinated Coffee Inc. (TSX:SWP) (“Swiss Water” or“the Company”), a leading specialty coffee company and premium chemical-free coffee decaffeinator, today reported financial results for the three and nine months ended September 30, 2026. All amounts are expressed in Canadian dollars unless otherwise stated.

Third Quarter 2026 Highlights

All comparisons are with the third quarter of 2025:

• Revenue of $65.9 million, an increase of 5%;
• Q3'26 processed volumes increased 16%;
• Net income of $0.9 million, an increase of $0.7 million;
• Adjusted EBITDA of $4.9 million, an increase of $1.6 million or 50%;
• Production facility operating at high-capacity utilization;
• Company commenced Normal Course Issuer Bid (“NCIB") to repurchase shares;
• Company announced 15% capacity expansion project for H1 2027.

Year to Date 2026 and LTM Highlights

All comparisons are with the nine months ended September 30, 2025:

• Revenue of $189.3 million, a decrease of 2%;
• Year to date processed volumes increased 11%;
• Net income of $4.2 million, an increase of $3.9 million;
• Earnings Per Share (“EPS”) of $0.44, an increase of $0.40;
• Adjusted EBITDA of $14.5 million, an increase of $7.4 million or 104%;
• Latest twelve month (“LTM”) Adjusted EBITDA at $18.7 million and LTM EPS of $0.57;
• Repayment of $14.2 million of debt and an 18% reduction in finance expense.

“The third quarter built on the momentum we established earlier in the year, with strong demand across the business and processing volumes up 16%. Our facilities are running at record levels of capacity utilization, and pricing is firm. Together, these dynamics drove significantly improved year-over-year profitability, and we closed the quarter with our LTM Adjusted EBITDA exceeding $18 million for the first time in our history. This higher profitability is lifting our free cash flow and continuing to drive meaningful debt reduction”, said Frank Dennis, CEO of Swiss Water.

“Demand continues to build, resulting in current operations being at record capacity utilization. The $6.2 million expansion we recently announced will increase our production capacity by 15% by June 2027. This investment will allow us to serve the growing needs of our existing customers, support new customer relationships, and extend our reach into new markets”, added Dennis.

Summary of Operational Performance

• Total processing volumes in pounds for the three and nine months ended September 30, 2026, increased by 16% and 11% when compared to the same periods in 2025.
• Elevated demand is driving high-capacity utilization in 2026, and adequate production capacity remains to support growth in the short term. Targeted incremental investments will be made in H1 2027 to ensure anticipated medium-term demand can be met.
• The NY'C' coffee futures price for Arabica coffee peaked at US$3.50/lb, before falling back to a low of $2.91/lb. Spot availability of green coffees remains low, and the futures market remained inverted during the third quarter of 2026.
• Since November 20, 2025, the Company operates on a tariff free operating model. Prior to that, in 2025, however, Swiss Water was affected by unpredictable and rapidly changing US tariff policy. Strategies are in place to manage future tariff exposures, should they re-emerge.

Summary of Financial Results

	In C$ '000s	3 months ended September 30	9 months ended September 30
	except for per share amounts	2026		2025		$ Change	% Change	2026		2025		$ Change	% Change
	Revenue			65,882		62,747		3,135		5	%	189,305		192,714		(3,409	)	-2	%
	Cost of sales			(55,870	)	(56,307	)	437		-1	%	(161,202	)	(173,739	)	12,537		-7	%
	Gross profit			10,012		6,440		3,572		55	%	28,103		18,975		9,128		48	%
	Operating expenses			(5,680	)	(4,226	)	(1,454	)	34	%	(15,872	)	(11,479	)	(4,393	)	38	%
	Operating income			4,332		2,214		2,118		96	%	12,231		7,496		4,735		63	%
	Non-operating or other			(3,357	)	(1,812	)	(1,545	)	85	%	(6,161	)	(7,044	)	883		-13	%
	Income tax expense			(38	)	(186	)	148		-80	%	(1,845	)	(95	)	(1,750	)	1842	%
	Net income			937		216		721		334	%	4,225		357		3,868		1083	%
	Adjusted EBITDA		(1)	4,925		3,294		1,631		50	%	14,535		7,129		7,406		104	%
	Earnings (loss) per share		(2)
	Basic			0.10		0.02				0.44		0.04
	Diluted			0.10		0.02				0.44		(0.13	)

¹ Adjusted EBITDA is defined in the 'Reconciliation of Non-IFRS Measures' section of this MD&A and is a“Non-GAAP Financial Measure” as defined by CSA Staff Notice 52-306.
² 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 the exercise of equity-based RSUs and any repurchases under the normal course issuer bid.

• Revenue for the three and nine months ended September 30, 2026, was $65.9 million and $189.3 million, which represents a $3.1 million or 5% increase and a $3.4 million or 2% decrease when compared to the same periods in 2025. During the quarter, the increase was primarily driven by higher volumes and improved recovery of inversion expenses, partially offset by lower NY'C' coffee futures prices and reduced tariff costs charged back to customers. Year to date, the decrease was primarily driven by lower NY'C' coffee futures prices and reduced tariff costs charged back to the customers, having a larger impact than the increased volumes and improved recovery of inversion expenses.
• Gross profit for the three and nine months ended September 30, 2026, was $10.0 million and $28.1 million, which represents a $3.6 million or 55% and a $9.1 million or 48% increase, when compared to the same periods in 2025. The increase was driven by increased volumes, improved recovery of inversion expenses, and scale efficiencies such as direct labour efficiencies, lower utility usage and rates. Also, better foreign exchange rates due to the appreciating US$ when compared to Q3 2025.
• For the three and nine months ended September 30, 2026, we recorded net income after taxes of $0.9 million and $4.2 million, compared to a net income after taxes of $0.2 million and $0.4 million for the same period in 2025. The increase was primarily driven by the improvement in gross profit, as described above, and reduced net finance expense due to lower debt balances and more favourable rates. This was partially offset by increased operating expenses driven mainly by an increase in non-cash share-based compensation due to a higher share price and timing of professional fees. In addition, the year to date increase in net income was also partially offset by the 2025 gain on fair value of the embedded option. There was no such revaluation gain in 2026 as the warrants were repurchased and cancelled in 2025.

Adjusted EBITDA

Swiss Water defines Adjusted EBITDA as net income before interest, depreciation, amortization, impairments, share-based compensation, gains/losses on foreign exchange, gains/losses on disposal of property and capital equipment, fair value adjustments on embedded options, loss on extinguishment of debt, adjustment for the impact of IFRS 16 - Leases, and provision for income taxes and other non-cash gains related to a remeasurement of asset retirement obligation. The Company's definition of Adjusted EBITDA also excludes unrealized gains and losses on the undesignated portion of foreign exchange forward contracts.

The reconciliation of net income, an IFRS measure, to Adjusted EBITDA is as follows:

In C$ '000s			3 months ended September 30	9 months ended September 30
				2026			2025			2026			2025
Net income			$	937		$	216		$	4,225		$	357
Income tax expense				38			186			1,845			95
Income before income tax			$	975		$	402		$	6,070		$	452
Finance income				(376	)		(407	)		(1,196	)		(1,147	)
Finance expense				1,340			1,635			4,169			5,055
Depreciation				1,917			1,729			5,684			5,357
Unrealized gain on foreign exchange forward contracts				(208	)		(147	)		(325	)		(76	)
Fair value gain on the embedded option		-			-			-			(1,657	)
(Gain) loss on foreign exchange			448			(144	)		(438	)		125
Share-based compensation expense		1,607			875			2,819			942
Impact of IFRS 16 - Leases				(778	)		(649	)		(2,248	)		(1,922	)
Adjusted EBITDA			$	4,925		$	3,294		$	14,535		$	7,129

Call Details

A conference call to discuss Swiss Water's recent financial results will be held on Wednesday , November 4, 2026, at 2:00 pm Pacific (PCT) (4:00 pm Eastern). To access the conference call, please dial:

• 1-888-506-0062 (toll-free) or
• 1-973-528-0011 (international);
• Listeners will be prompted to provide an access code: 914421. If a listener does not have this code, they can reference the Company name as an alternative passcode.

A replay will be available through Wednesday, November 18, 2026, at:

• 1-877-481-4010 (toll-free) or
• 1-919-882-2331 (international); replay passcode: 54629

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+ and Swiss Water's website (investor.swisswater.com ).

For more information, please contact

Iain Carswell, Chief Financial Officer
Swiss Water Decaffeinated Coffee Inc.
Phone: 1-604-420-4050
Email:...
Website: investor.swisswater.com

About Swiss Water

Swiss Water Decaffeinated Coffee Inc. is a leading specialty coffee company and a premium green coffee decaffeinator that employs the proprietary Swiss Water® Process to decaffeinate green coffee without the use of chemical solvents such as methylene chloride. It also owns Seaforth Supply Chain Solutions Inc., a green coffee handling and storage business. Both businesses are located in Delta, British Columbia, Canada.

Forward-Looking Statements

Certain statements in this press release may constitute“forward-looking” statements that involve known and unknown risks, uncertainties and other factors that 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”,“anticipate” and other similar terminology. These statements reflect management's current expectations regarding future events and operating performance, as well as management's current estimates, 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 and packaging materials, supply of labour force, general industry conditions, commodity price risks, technology, competition, foreign exchange rates, construction timing, costs and financing of capital projects, a potential impact of any pandemics, global and local climate changes, changes in interest rates, inflation, transportation availability, 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.

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