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Mar 30, 2022 • 12 minutes in the past • 9 minute learn • Be a part of the dialog
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VANCOUVER, British Columbia, March 30, 2022 (GLOBE NEWSWIRE) — Swiss Water Decaffeinated Espresso Inc. (TSX– SWP) (“Swiss Water” or “the corporate”), a number one specialty espresso firm and premium inexperienced espresso decaffeinator, at this time reported monetary outcomes for the 12 months ended December 31, 2021.
Three months and 12 months ended December 31, 2021 Monetary and Operational Highlights
- Fourth quarter income was $35.1 million, a rise of 43% or $10.6 million when in comparison with the identical interval in 2020. Full-year income grew strongly and was $125.1 million, a rise of 28% or $27.5 million.
- Quarterly and annual volumes elevated by 23% and 17%, respectively, in comparison with the identical durations in 2020 reflecting new buyer acquisition and natural development with present clients because the meals service economic system continues to get well.
- European enterprise grew very strongly with volumes up by 70% in comparison with the 12 months ended December 31, 2020. Annual volumes within the Asia Pacific and North American areas grew strongly at 30% and 5% respectively.
- Manufacturing volumes had been excessive throughout the fourth quarter and capability utilization throughout the corporate’s three manufacturing traces exceeded 80 %.
- Fourth quarter Adjusted EBITDA1 was $2.1 million, in comparison with $1.2 million in the identical quarter in 2020, representing a rise of 78%. Full-year Adjusted EBITDA grew strongly to $10.5 million in comparison with $7.0 million in 2020, a rise of fifty%.
- Fourth quarter web revenue was $0.2 million, in comparison with a web lack of $0.3 million in the identical quarter in 2020, representing a rise of $0.5 million or 175%. Full-year web revenue fell to $0.5 million from $2.9 million in the identical interval in 2020 on account of elevated depreciation, a non-cash loss on the extinguishment of the convertible debenture and elevated finance bills.
- Swiss Water initiated on-site building of a second manufacturing line in Delta, BC in July 2021. The inspiration was accomplished within the third quarter of 2021, and above floor building commenced throughout the fourth quarter. The undertaking is at present on time and on funds.
- Inflationary stress elevated throughout the firm’s variable value construction throughout the fourth quarter and led to a rise in processing costs to allow upkeep of margins.
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1 Adjusted EBITDA is outlined within the ‘Non-IFRS Measures’ part of the MD&A and is a “Non-GAAP Monetary Measure” as outlined by CSA Workers Discover 52-306.
“We’re very proud to report that our volumes, revenues and adjusted EBITDA hit document ranges in 2021. Annual income exceeded $100 million for the primary time, and Adjusted EBITDA moved past $10 million for the primary time within the firm’s historical past. Our present clients are experiencing robust development in demand for his or her chemical free decaf choices and moreover, we now have began to ship merchandise to plenty of new out-of-home clients in North America. We’re seeing excellent proof within the market that methylene chloride decaffeination is declining in choice by roasters and shoppers. Moreover, we’re excited to share that our capability utilization fee throughout our three manufacturing traces exceeded 80% throughout the fourth quarter and that these manufacturing charges drive stable profitability”, mentioned Frank Dennis, Swiss Water’s President and CEO. “As we glance ahead into 2022 we’re persevering with to see a powerful order guide and we’re optimistic that, with maturing vaccination packages in most developed nations, we’ll proceed to see beneficial buying and selling circumstances in our key markets. On a extra cautionary observe, we’re persevering with to expertise a marked slowdown in espresso deliveries as provide chain bottlenecks persist. Moreover, a uncommon double frost occurred final July in Brazil growing espresso futures costs sharply by means of the fourth quarter which brought about a big improve in working capital wants. We pays shut consideration to those rising dangers and growing prices, with an growing expectation for additional pricing actions and different mitigation efforts. On a separate observe, we commenced above floor building of our second line in Delta, BC throughout the fourth quarter and we anticipate to fee this new line in 2023”, mentioned Dennis.
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Operational Highlights
The next desk exhibits modifications in volumes throughout the three months and 12 months ended December 31, 2021, in comparison with the identical durations in 2020.
| Volumes | 3 months ended December 31, 2021 | Yr ended December 31, 2021 | ||
| Change in whole volumes | +23% | +17% | ||
| By buyer sort | ||||
| Roasters | -6% | +1% | ||
| Importers | +69% | +50% | ||
| Specialty | +34% | +26% | ||
| Business | +14% | +12% | ||
- Whole volumes within the fourth quarter and 12 months ended 2021 improved by 23% and 17%, respectively, in comparison with the identical durations in 2020. Throughout all geographical markets, lots of the firm’s clients are seeing robust client demand and are ordering in line, and in some circumstances, forward of pre-pandemic ranges. Moreover, quantity development was enhanced throughout This fall 2021 as the corporate began to ship merchandise to some new out-of-home clients inside North America. Encouragingly, Swiss Water recorded 7% and 56% development in its North America and Asia Pacific areas respectively within the fourth quarter of 2021, in comparison with the identical durations in 2020. In Europe, volumes elevated by a formidable 72% throughout the three months ended December 31, 2021.
- As previously, Swiss Water’s largest geographical market by quantity continues to be america, adopted by Canada, Europe and different worldwide markets. By greenback worth, for the 12 months ended December 31, 2021, 43% of gross sales had been to clients in america, 31% had been to Canada, and the remaining 26% had been to different nations.
- In September 2020, Swiss Water efficiently accomplished its first manufacturing run of commercial-grade espresso from its new Delta, BC facility. Throughout 2021, a good portion of manufacturing quantity was transitioned to Delta, lowering among the stress on the corporate’s legacy manufacturing property in Burnaby, BC. The Delta facility is now operating easily on a 24/7 foundation and contributed to the fourth quarter capability utilization fee exceeding 80% throughout the corporate’s three manufacturing traces.
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Monetary Highlights
| In $000s besides per share quantities | 3 months ended December 31 | Yr ended December 31 | |||||||||
| (unaudited) | 2021 | 2020 | 2021 | 2020 | |||||||
| Gross sales | $ | 35,129 | $ | 24,512 | $ | 125,076 | $ | 97,571 | |||
| Gross revenue | 4,389 | 2,861 | 17,611 | 15,652 | |||||||
| Working revenue | 1,517 | 126 | 6,686 | 5,137 | |||||||
| Internet revenue (loss) | 241 | (320 | ) | 496 | 2,949 | ||||||
| Adjusted EBITDA1 | 2,111 | 1,186 | 10,533 | 7,042 | |||||||
| Internet revenue per share – primary2 | $ | 0.03 | $ | (0.04 | ) | $ | 0.05 | $ | 0.32 | ||
| Internet revenue per share – diluted2 | $ | 0.03 | $ | (0.04 | ) | $ | 0.05 | $ | 0.25 | ||
1 Adjusted EBITDA is outlined within the ‘Non-IFRS Measures’ part of the MD&A and is a “Non-GAAP Monetary Measure” as outlined by CSA Workers Discover 52-306.
2 Per-share calculations are based mostly on the weighted common variety of shares excellent throughout the durations. Diluted earnings per share take into consideration shares which may be issued upon conversion of convertible debenture (till July 20, 2021), the train of warrants, and RSUs in addition to the impression on earnings from modifications within the truthful market worth of the embedded possibility within the convertible debenture (till July 20, 2021) and conversion of RSUs and the train of warrants.
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- Fourth quarter income elevated by 43% over This fall 2020 to $35.1 million, and 12 month income elevated by 28% to $125.1 million on account of elevated quantity development within the durations and the impact of upper inexperienced espresso costs, in comparison with the identical durations in 2020.
- Adjusted EBITDA for the three months and 12 months ended December 31, 2021 was $2.1 million and $10.5 million respectively, representing will increase of 78% and 50%, in comparison with the identical durations in 2020. Operationally, the rise in Adjusted EBITDA was pushed by quantity development, effectivity positive factors on account of larger capability utilization charges, and an elevated monetary contribution from Seaforth. These positive factors had been considerably offset by a rise in inexperienced espresso prices and incremental labour and manufacturing bills related to working at two stand-alone amenities. The prices related to operating two vegetation will stop when the corporate exits its Burnaby facility, anticipated to happen on the finish of June 2023.
- Internet Revenue declined throughout the 2021 fiscal 12 months, regardless of the numerous improve in Adjusted EBITDA, to $0.5 million from $2.9 million in 2020. The change was pushed primarily by the $2.1 million improve in depreciation and amortization ensuing from working at two amenities, the non-cash lack of $1.4 million on the extinguishment of the convertible debenture, and a $1.3 million improve in finance expense because of the larger debt wanted to finance the development of the second manufacturing line in Delta, in addition to working capital investments pushed by growing espresso costs.
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NON-IFRS MEASURES
Adjusted EBITDA
We outline Adjusted EBITDA as web revenue earlier than curiosity, depreciation, amortization, impairments, share-based compensation, positive factors/losses on international trade, positive factors/losses on disposal of property and capital gear, truthful worth changes on embedded choices, loss on extinguishment of debt, adjustment for the impression of IFRS 16 – Leases, and provision for revenue taxes. Our definition of Adjusted EBITDA additionally excludes unrealized positive factors and losses on the undesignated portion of international trade ahead contracts.
To assist readers higher perceive our monetary outcomes, the next desk supplies a reconciliation of web revenue, an IFRS measure, to Adjusted EBITDA is as follows:
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| (In $000s) | 3 months ended December 31, | Yr ended December 31, | ||||||||||
| (unaudited) | 2021 | 2020 | 2021 | 2020 | ||||||||
| Revenue (loss) for the interval | $ | 241 | $ | (320) | $ | 496 | $ | 2,949 | ||||
| Revenue taxes expense (restoration) | 128 | (323) | 509 | 1,058 | ||||||||
| Revenue (loss) earlier than tax | $ | 369 | $ | (643) | $ | 1005 | $ | 4,007 | ||||
| Finance revenue | (72) | (118) | (442) | (488) | ||||||||
| Finance bills | 1,189 | 1,061 | 4,364 | 3,087 | ||||||||
| Loss on extinguishment of debt | (4) | – | 1,381 | – | ||||||||
| Depreciation & amortization | 1,095 | 1,653 | 6,208 | 4,677 | ||||||||
| Unrealized (achieve) loss on international trade forwards | (183) | (371) | 80 | (48) | ||||||||
| Truthful worth loss (achieve) on the embedded possibility | – | 72 | 48 | (1,328) | ||||||||
| (Achieve) loss on international trade | 214 | 43 | 7 | (19) | ||||||||
| Share-based compensation expense (restoration) | 205 | 192 | 690 | (129) | ||||||||
| Affect of IFRS 16 – Leases | (702) | (700) | (2,808) | (2,717) | ||||||||
| Adjusted EBITDA | $ | 2,111 | $ | 1,189 | $ | 10,533 | $ | 7,042 | ||||
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Firm Profile
Swiss Water Decaffeinated Espresso Inc. is a number one specialty espresso firm and a premium inexperienced espresso decaffeinator that employs the proprietary Swiss Water® Course of to decaffeinate inexperienced espresso with out using solvents reminiscent of methylene chloride. It additionally owns Seaforth Provide Chain Options Inc., a inexperienced espresso dealing with and storage enterprise. Each companies are situated within the cities of Burnaby and Delta, British Columbia, Canada.
Extra Info
A convention name to debate Swiss Water’s latest monetary outcomes might be held on March 31, 2022 at 10:00 am Pacific Time (1:00 pm Jap Time). To entry the convention name, please dial 1-888-506-0062 (toll free) or 1-973-528-0011 (worldwide); passcode: 624705. A replay might be obtainable by means of April 14, 2022 at 1-877-481-4010 (toll free) or 1-919-882-2331 (worldwide); passcode: 44930.
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A extra detailed dialogue of Swiss Water Decaffeinated Espresso Inc.’s latest monetary outcomes is offered within the firm’s Administration Dialogue and Evaluation filed on SEDAR (www.sedar.com) and the corporate’s web site (investor.swisswater.com).
For extra info, please contact:
Iain Carswell, Chief Monetary Officer
Swiss Water Decaffeinated Espresso Inc.
Cellphone: 604.420.4050
E-mail: investor-relations@swisswater.com
Web site: investor.swisswater.com
Ahead-Wanting Statements
Sure statements on this press launch might represent “forward-looking” statements that contain recognized and unknown dangers, uncertainties and different elements which can trigger the precise outcomes, ranges of exercise, efficiency or achievements to be materially completely different from any future outcomes, ranges of exercise, efficiency or achievements expressed or implied by such forward-looking statements. When used on this press launch, such statements might embrace such phrases as “might”, “will”, “anticipate”, “consider”, “plan” and different comparable terminology. These statements mirror administration’s present expectations relating to future occasions and working efficiency, in addition to administration’s present estimates, however that are based mostly on quite a few assumptions and will show to be incorrect. These statements are neither guarantees nor ensures, however contain recognized and unknown dangers and uncertainties, together with, however not restricted to, dangers associated to processing volumes and gross sales development, working outcomes, the availability of utilities, the availability of espresso, normal business circumstances, commodity value dangers, expertise, competitors, international trade charges, building timing, prices and financing of capital initiatives, a possible impression of the COVID-19 pandemic, and normal financial circumstances. The forward-looking statements and monetary outlook info contained herein are made as of the date of this press launch and are expressly certified of their entirety by this cautionary assertion. Besides to the extent required by relevant securities regulation, Swiss Water undertakes no obligation to publicly replace or revise any such statements to mirror any change in administration’s expectations or in occasions, circumstances, or circumstances on which any such statements could also be based mostly, or which will have an effect on the probability that precise outcomes will differ from these described herein.
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