Business
Swiss Water Decaffeinated Coffee Income Fund Reports 2010 First Quarter Results
Swiss Water Decaffeinated Coffee Income Fund Reports 2010 First Quarter Results
About this update from Swiss Water Decaffeinated Coffee, Inc.
[{"type":"text","content":"\n\n\n\n May 11, 2010 (Canada NewsWire Group) -- Processing Volumes, Revenue, EBITDA and Net Income Up Over Q1 2009\n\nTRADING SYMBOL: The Toronto Stock Exchange - SWS.UN\n\n Swiss Water Decaffeinated Coffee Income Fund ("the Fund") today reported financial results for the three months ended March 31, 2010, which represents the first quarter of its 2010 fiscal year. The Fund holds all of the outstanding securities of Swiss Water Decaffeinated Coffee Company, Inc. ("SWDCC" or "the company") and its results are dependent on the operating results of SWDCC.\n\n\n >\n\n\nDuring the three months ended March 31, 2010, SWDCC's coffee processing volumes were up by 6% over the first quarter of last year, with gains recorded in all areas of its business and across all geographic markets. The company's sales of decaffeinated coffee from inventory (its "non-toll" business) grew by more than its toll business, increasing the amount of green coffee sales included in revenue. As a result of increased volumes and higher non-toll sales, first quarter revenues increased by 7%, growing from $7.3 million in 2009 to $7.8 million this year.\nPartially offsetting these gains was a comparatively weak US dollar. During the first quarter of 2010, approximately 79% of the company's sales were generated in US dollars, up from 66% in Q1 2009. As the US-Canadian exchange rate was lower throughout the quarter than in the same period last year, this had a negative impact on the company's revenue.\nFirst quarter gross profit totaled $1.3 million, compared to $1.4 million in Q1 2009. The slight decrease reflects higher cost of goods sold for the period, which rose to $6.5 million from $5.9 million in 2009. This increase was due to an 18% jump in the company's green coffee costs as a result of the relative strength of its non-toll business. This was partially offset by measures the company took to reduce production costs.\nSWDCC recorded first quarter net income of $0.7 million, compared to a net loss of $0.1 million in 2009. EBITDA for the period rose by 116% to $1.3 million, up from $0.6 million. In both cases, the improvement was mainly related to lower consumer promotion and advertising expenses, which fell to $0.1 million compared to $1.0 million in Q1 2009.\nIn recent years, SWDCC has increased its strategic investment...