The Canadian decaffeinated coffee company reports decaf demand has exceeded pre-pandemic levels in most markets, with new customer acquisitions in the US and improving international revenues helping the company overcome increasing costs and supply chain delays
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Gross profit reached $8m during the quarter, an increase of $4.3m over the same period last year | Photo credit: Swiss Water
Swiss Water has credited increased sales in North America and improved demand in Europe and Asia-Pacific for driving revenue growth of 68% in its second quarter.
The Vancouver-based company’s revenues reached $48.4m for the three months ended 30 June 2022, with year-to-date revenue currently 59% higher than 2021 at $86.8m.
Gross profit reached $8m during the quarter, an increase of $4.3m over the same period last year.
Total second quarter volume increased 40%, with North America, Swiss Water’s largest market, achieving 34% gains amid a noticeable increase in shipments to several new out-of-home customers in the region.
International market volumes increased 68% with Swiss Water expecting revenues from European and Asia-Pacific markets to improve in both dollar value and percentage during the second half of 2022.
The company reported that 45% of its sales were currently to customers in the US, 32% international and the remaining 23% to Canada.
“We are very pleased to report that the strong performance we achieved during the first quarter of 2022 strengthened further during the second quarter of this year. Our volumes, revenues and profitability have all exceeded our expectations, leading to a stronger than expected first half of the year,” said Frank Dennis, CEO, Swiss Water.
Swiss Water said that it expects favourable trading conditions to continue in its key markets but cautioned that increased costs and delays in coffee deliveries are likely as supply chain bottlenecks persist.
“We will pay close attention to these emerging risks and increasing costs and expect that further pricing actions and other mitigation efforts will likely be required,” added Dennis.
Swiss Water decaffeinates coffees without the use of chemicals, such as methylene chloride, a process that the company promotes is the world’s only third-party 100% chemical-free water process for coffee decaffeination. Swiss Water also operates Seaforth Supply Chain Solutions Inc., a green coffee handling and storage business, also located in British Columbia, Canada.
Listen to Emmanuel Dias, VP of Trading for Europe, Swiss Water, discussing the growing demand for decaf coffee worldwide on the 5THWAVE Podcast.