The Canadian company said demand for its chemical-free water process is increasing but sales growth remains subject to microeconomic pressures
Swiss Water's year-to-date revenue is currently 48% higher than the same period of 2021 | Photo credit: Swiss Water
Swiss Water has credited continued sales growth in Asia Pacific and increased consumer demand for its chemical-free decaf offering as driving 30% third quarter revenue growth.
The Vancouver-based company’s revenues reached $46.2m for the three months ended 30 September 2022, with year-to-date revenue currently 48% higher than the same period of 2021 at $132.9m.
Gross profit reached $4.3m during the quarter and stands at $13.6m for the year-to-date.
Swiss Water’s largest geographical market by volume and sales continues to be the US, followed by international markets and Canada.
Volumes in Asia-Pacific markets grew by 24% in the quarter and 60% for the year-to-date. Swiss Water anticipates revenues from the region to continue increasing during the remainder of 2022.
Total sales growth slowed compared to the previous quarter, which the company attributed to ‘the growing impact of microeconomic risks’. Swiss Water said ‘persistent inflationary pressures’ and rising interest rates are undermining consumer sentiment in some key markets.
As a result, the company expects a fall in volumes in its fourth quarter.
“We are very pleased to report that the strong performance we achieved during the first half of this year strengthened further during the third quarter. Our existing customers continue to experience growing demand for their chemical-free decaf offerings. While at the same time, we are seeing very good evidence in the marketplace that the methylene chloride decaffeination process used by many of our competitors is declining in preference by roasters and consumers,” said Frank Dennis, CEO, Swiss Water.
Swiss Water has also announced the expansion of its credit facilities, which will result in $33.2m of incremental capital availability. Dennis said the expansion represents a ‘statement of support in our ability to grow our business into the future’.
The move will also fund the completion of Swiss Water’s second production line in British Columbia, which is expected to be operational in the third quarter of 2023.
Swiss Water decaffeinates coffees without the use of chemicals via a process that the company promotes as the world’s only third-party 100% chemical-free water process for coffee decaffeination. Swiss Water also operates Seaforth Supply Chain Solutions Inc., a British Columbia-based green coffee handling and storage business.