Swiss Water posts higher Q2 profit, plans share buyback program

Swiss Water Decaffeinated Coffee Inc. (TSX: SWP) reported net income of C$1.9 million for the second quarter ended June 30, 2026, compared to a net loss of C$374,000 in the same period a year earlier, according to a company press release.

Processed volumes rose 17% year-over-year in the quarter, while revenue fell 3% to C$66.0 million, a decline the company attributed to lower New York arabica coffee futures prices. Gross profit increased 94% to C$10.2 million. Adjusted EBITDA reached C$5.3 million, up 191% from C$1.8 million in the second quarter of 2025. The company repaid C$8.9 million of debt during the quarter, reducing interest expense by 17%.

For the six months ended June 30, 2026, revenue was C$123.4 million, down 5% from C$130.0 million a year earlier. Net income for the period was C$3.3 million, compared to C$141,000 in the prior-year period. Year-to-date Adjusted EBITDA was C$9.6 million, up 151%. The company repaid C$15.3 million of debt in the first half of 2026, comprising C$12.5 million of operating facilities and C$2.8 million of a construction loan. Latest twelve-month Adjusted EBITDA stood at C$17.1 million.

Swiss Water's board of directors authorized a Normal Course Issuer Bid to repurchase up to approximately 650,000 common shares, representing about 9.7% of shares in the public float as of August 5, 2026. The program is subject to approval by the Toronto Stock Exchange. The company stated it has not repurchased any shares in the preceding twelve months.

"We closed the quarter with our LTM Adjusted EBITDA exceeding $17 million for the first time in our history," said CEO Frank Dennis.

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