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Swiss Water Decaffeinated Coffee / Equity Bottom-Up

Swiss Water Decaffeinated Coffee (SWSSF US)

<ul>
<li>SWP is focused on optimizing its financial flexibility &amp; strengthened its balance sheet in 1Q26.</li>
<li>SWP repaid C$6.4m of debt, contributing to 17% y/y reduced quarterly interest expense.</li>
<li>Post 1Q26, SWP's operating credit facility maturity date was renewed &amp; extended by one year until June 2028.</li>
</ul>


SWP is focused on optimizing its financial flexibility &amp; strengthened its balance sheet in 1Q26.
SWP repaid C$6.4m of debt, contributing to 17% y/y reduced quarterly interest expense.
Post 1Q26, SWP's operating credit facility maturity date was renewed &amp; extended by one year until June 2028.


SWP.TO: Industry Dynamics & Fundamentals Appear to Be Normalizing

<ul>
<li>Coffee ranks among the top beverages consumed 2nd only to bottled water &amp; within the coffee beverage category, decaffeinated and specialty coffees are gaining share.</li>
<li>SWP's natural 100% chemical-free decaffeination process is expected to remain highly attractive, given continued consumer trends towards health consciousness.</li>
<li>The company is encouraged by early signs that coffee prices are moderating and that market dynamics are resuming normal patterns, albeit slowly.</li>
</ul>


Coffee ranks among the top beverages consumed 2nd only to bottled water &amp; within the coffee beverage category, decaffeinated and specialty coffees are gaining share.
SWP's natural 100% chemical-free decaffeination process is expected to remain highly attractive, given continued consumer trends towards health consciousness.
The company is encouraged by early signs that coffee prices are moderating and that market dynamics are resuming normal patterns, albeit slowly.


SWP.TO: Improving Coffee Prices Expected to Improve Industry Outlook

<ul>
<li>Even if some of the expected price improvement is muted in the U.S. by tariffs or tariff uncertainties 1) decaf coffee consumption is growing, a trend we expect will continue</li>
<li>2) SWP's 100% chemical-free decaffeination process is expected to remain highly attractive, given consumers rising health consciousness</li>
<li>3) SWP's global focus continues to drive growth in multiple international markets where prices are expected to benefit from supply increases.</li>
</ul>


Even if some of the expected price improvement is muted in the U.S. by tariffs or tariff uncertainties 1) decaf coffee consumption is growing, a trend we expect will continue
2) SWP's 100% chemical-free decaffeination process is expected to remain highly attractive, given consumers rising health consciousness
3) SWP's global focus continues to drive growth in multiple international markets where prices are expected to benefit from supply increases.


SWP.TO: Industry Outlook Potentially Improving as Coffee Supply Expected to Increase

<ul>
<li>SWP’s strategic growth measures include balance sheet strengthening measures through debt repayments &amp; cancellation of outstanding warrants, increasing liquidity through amended terms on its revolving credit facility &amp; addition of a new credit facility, optimizing inventories to be positioned to respond to customer demand &amp; focus on new global markets.</li>
<li>Tariffs on most Brazilian product imports has led to demand shift away from Brazil from multiple customers, with SWP looking to source coffee from other markets, while retaining flexible purchasing and inventory management in the face of potentially rapid changes in tariffs.</li>
<li>Swiss Water Decaffeinated Coffee Inc. (OTC:SWSSF, TSX: SWP) reported 3Q25 results last week that were strong, particularly against a backdrop of rising coffee prices, industry challenges and adjusting for the impact of FX and hedging, we believe. </li>
</ul>


SWP’s strategic growth measures include balance sheet strengthening measures through debt repayments &amp; cancellation of outstanding warrants, increasing liquidity through amended terms on its revolving credit facility &amp; addition of a new credit facility, optimizing inventories to be positioned to respond to customer demand &amp; focus on new global markets.
Tariffs on most Brazilian product imports has led to demand shift away from Brazil from multiple customers, with SWP looking to source coffee from other markets, while retaining flexible purchasing and inventory management in the face of potentially rapid changes in tariffs.
Swiss Water Decaffeinated Coffee Inc. (OTC:SWSSF, TSX: SWP) reported 3Q25 results last week that were strong, particularly against a backdrop of rising coffee prices, industry challenges and adjusting for the impact of FX and hedging, we believe. 


SWP.TO: Volumes Up 7% Despite Volatile Market

<ul>
<li>SWP recently purchased and canceled an outstanding warrant entitling Mill Road Capital to acquire up to 2.25m shares.</li>
<li>SWP also amended its revolving credit facility, increasing liquidity, extending terms and obtaining a new $25m revolving credit facility with a new bank, Rabobank.</li>
<li>These initiatives strengthened SWP's balance sheet &amp; enhance its financial flexibility.</li>
</ul>


SWP recently purchased and canceled an outstanding warrant entitling Mill Road Capital to acquire up to 2.25m shares.
SWP also amended its revolving credit facility, increasing liquidity, extending terms and obtaining a new $25m revolving credit facility with a new bank, Rabobank.
These initiatives strengthened SWP's balance sheet &amp; enhance its financial flexibility.


SWP.TO: Solid 2Q25 Customer Growth, 1H Volumes Up Despite Volatile Market Conditions

Canada

Swiss Water Decaffeinated Coffee Inc. manufactures non alcoholic beverages. The Company offers coffee. Swiss Water Decaffeinated Coffee serves customers in Canada.

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Swiss Water Decaffeinated Coffee (SWSSF US)

SWP.TO: Industry Dynamics & Fundamentals Appear to Be Normalizing

SWP is focused on optimizing its financial flexibility & strengthened its balance sheet in 1Q26. SWP repaid C$6.4m of debt, contributing to 17% y/y...

Zacks Small Cap Research

SWP.TO: Improving Coffee Prices Expected to Improve Industry Outlook

Coffee ranks among the top beverages consumed 2nd only to bottled water & within the coffee beverage category, decaffeinated and specialty coffees...

Zacks Small Cap Research

SWP.TO: Industry Outlook Potentially Improving as Coffee Supply Expected to Increase

Revenue in all key markets was higher in 3Q25, with international market sales volume up 14% as SWP continues to expand its global customer base.

Zacks Small Cap Research

SWP.TO: Volumes Up 7% Despite Volatile Market

The company is a leading specialty coffee company and premium green coffee decaffeinator producing chemical-free decaffeinated coffee

Zacks Small Cap Research

SWP.TO: Solid 2Q25 Customer Growth, 1H Volumes Up Despite Volatile Market Conditions

SWP also amended its revolving credit facility, increasing liquidity, extending terms and obtaining a new $25m revolving credit facility with a new...

Zacks Small Cap Research

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