Q3 2024 Swiss Water Decaffeinated Coffee Inc Earnings Call Transcript
Key Points
- 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.
- The consolidation of operations into a single location has resulted in significant efficiencies and cost savings, boosting gross profit by 80% in the quarter.
- Gross margin percentage improved from 10% in the first nine months of last year to 16% this year.
- The company successfully reduced its debt by $60 million, including a $15.9 million repayment to Mill Road Capital.
- 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.
- 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.
- The high NYC coffee futures price is negatively affecting consumer coffee consumption and roaster demand, potentially impacting volume growth.
- Persistent disruptions in the coffee supply chain, including logistics delays and labor disputes, have created challenges in meeting customer commitments.
- Operating expenses increased by $900,000 in Q3, driven by planned headcount wage increases and higher professional fees.
- The company faces macroeconomic risks such as inflation and geopolitical uncertainties, which could impact future performance.
The Incorporated conference call starts. They are required to remind you that certain information in today's presentation is forward-looking in nature. Any such forward-looking information or statements are based on assumptions that they considered reasonable at the time the information was prepared.
Such information involves known and unknown risks and uncertainties and other factors outside our control that could cause actual results to differ materially from those expressed in the forward-looking information.
Swiss Water decaffeinated Coffee Incorporated does not assume responsibility for the accuracy and completeness of the forward-looking information.
Similarly, they do not undertake any obligation to publicly revise this forward-looking information to reflect subsequent events or circumstances except as required by law.
Please refer to swiss Water Decaffeinated Coffee Incorporated Management's discussion and analysis posted on CDAR and Swiss Water's website for a full discussion regarding forward-looking statements and the risks. Therein.
I would now
| Access to All Earning Calls and Stock Analysis | |
| 30-Year Financial on one screen | |
| All-in-one Stock Screener with unlimited filters | |
| Customizable Stock Dashboard | |
| Real Time Insider Trading Transactions | |
| 8,000+ Institutional investorsā 13F holdings | |
| Powerful Excel Add-in and Google sheets Add-on | |
| All data downloadable | |
| Quick customer support | |
| And much more... |
Trustpilot
We'd love to learn more about your experiences on GuruFocus.com and how we can improve!
Take Survey
