Canada and Mexico to Cooperate as ‘Free Traders' Facing US Tariffs
The two nations agreed 'to build a work plan' covering 'resilient supply chains, port-to-port lines of trade, artificial intelligence and the digital economy, energy security,' Foreign Affairs Minister Anita Anand said in a call with reporters late Tuesday. Accompanied by Finance Minister Francois-Philippe Champagne, their conversation with Sheinbaum lasted 'well over an hour,' she said.
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The Canadian Stocks That Could Make You Rich Over the Next Decade
Written by Puja Tayal at The Motley Fool Canada Is 10 years enough time to make you rich? It depends on the amount you are investing and how much you expect to earn. If you want to convert $50,000 into $500,000, you need a Canadian stock that can provide a 26% compounded annual growth rate (CAGR). And if you want $250,000, you need a stock that can provide a 17.5% CAGR. For 26% CAGR returns, you need high-growth tech stocks that are shaping the future, such as those involved in artificial intelligence (AI). For a 17.5% CAGR, a resilient tech stock is what you need. The Canadian stock that could give you a 26% CAGR in 10 years If you are looking for a single stock that can give a 10 times return in 10 years, you need to invest in a futuristic Canadian stock with a competitive advantage. Tech stocks worth considering are (TSXV:TOI) for risk-averse investors or HIVE Digital Technologies (TSXV:HIVE) for risk-taking investors. A stock for risk-averse investors acquires European software companies that operate in mission-critical applications and enjoy recurring cash flows. Its competitive advantage is an acquisition model that helps it earn a desired return on investment (ROI) from acquired companies. reinvests the cash from the acquired companies to acquire new companies. This gives it the benefit of compounding, which can grow its ROI in the long term. growth is not dependent on a tech trend but on consistent cash flows from its diversified portfolio of companies operating across various verticals. It could earn a 20%–25% CAGR in the next 10 years, even if sustaining its 12%–42% free cash flow (FCF) growth. A Canadian stock for risk-taking investors If you are willing to take risks, Hive Digital Technologies can give you exponential growth in one or two growth cycles over the next decade. The Bitcoin mining company is making some bold moves. It is expanding its mining capacity to 25 Exahash/second (EH/s) by November 2025 from 14 EH/s in July 2025. Once the 300 MW Paraguay expansion comes online, it will mine more Bitcoin. Hive is also expanding its high-performance computing (HPC) capabilities to support the sovereign Canadian artificial intelligence ecosystem. These expansions are being funded from internal cash flow accruals and could grow its revenue fourfold. So far, the stock is trading at a price-to-sales ratio of 2.4 times, hinting that the market has not yet priced in revenue growth. Now is a good time to buy and hold this stock while it trades below $3. The stock could see exponential growth once the contribution of HPC revenue comes closer to that of Bitcoin mining. At present, HPC accounts for only 10% of its revenue but is growing at 300% annually. Another growth trigger could come in a strong economy where the Bitcoin value surges and creates another crypto bubble. The Canadian stock that could grow at a 17.5% CAGR over 10 years Descartes Systems (TSX:DSG) has a robust business model that caters to an age-old business operation of supply chain and logistics. Multiple businesses with heavy logistics requirements, like airlines, oil and gas exporters, and e-commerce companies, need solutions that can help them execute trade efficiently. Descartes's unique model allows clients to choose from end-to-end solutions and selective services, or use solutions for a single consignment. For instance, the tariff war is driving demand for its Global Trade Intelligence and compliance solutions. The holiday season sees a surge in e-commerce solutions. The company keeps adding new services, organically and through acquisitions, giving clients more reasons to come back. It has grown its revenue at 13.4% CAGR in the last 10 years and can continue doing so for the next decade. DSG stock could grow between a 17–20% CAGR and convert $50,000 into $250,000 in 10 years. The post The Canadian Stocks That Could Make You Rich Over the Next Decade appeared first on The Motley Fool Canada. Where Should You Invest $1,000 Right Now? Before you put a single dollar into the stock market, we think you'll want to hear this. Our S&P/TSX market beating* Stock Advisor Canada team just released their Top Stocks for 2025 and Beyond that we believe could supercharge any portfolio. Want to see what made our list? Get started with Stock Advisor Canada today to receive all of our Top Stocks, a fully stocked treasure trove of industry reports, two brand-new stock recommendations every month, and much more. See the Top Stocks * Returns as of 6/23/25 More reading 10 Stocks Every Canadian Should Own in 2025 3 Canadian Companies Powering the AI Revolution A Commonsense Cash Back Credit Card We Love The Motley Fool has positions in and recommends The Motley Fool recommends Descartes Systems Group. The Motley Fool has a disclosure policy. Fool contributor Puja Tayal has no position in any of the stocks mentioned. 2025 Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
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MCAN FINANCIAL GROUP RELEASES Q2 2025 RESULTS AND DECLARES 41 CENTS CASH DIVIDEND
Core business performing in current environment TORONTO, Aug. 6, 2025 /CNW/ - MCAN Mortgage Corporation d/b/a MCAN Financial Group ("MCAN", the "Company" or "we") (TSX: MKP) reported net income of $20.2 million ($0.51 earnings per share) for the second quarter of 2025, an increase from net income of $19.7 million ($0.52 earnings per share) in the second quarter of 2024. Second quarter 2025 return on average shareholders' equity1 was 13.19% compared to 13.63% for the same period in the prior year. Our Q2 results were mainly impacted by higher mortgage spread income and higher income from MCAP partially offset by higher provisions for credit losses compared to the same prior year period. Shop Top Mortgage Rates Your Path to Homeownership A quicker path to financial freedom Personalized rates in minutes For YTD 2025, we reported net income of $36.8 million ($0.94 earnings per share), a decrease from net income of $43.0 million ($1.17 earnings per share) for the same prior year period. Return on average shareholders' equity1 was 12.10% for YTD 2025 compared to 15.31% for the same prior year period. We reported lower total net income for YTD mainly as a result of higher provisions for credit losses due to the forecasted economic and geopolitical environment. We are committed to a strategy of managing controllable factors to protect our bottom line and capital. We expect to take advantage of opportunities that arise in the current market environment. We believe that we have a quality loan portfolio with conservative loan to value ratios supporting our loans. The Board of Directors declared a third quarter regular cash dividend of $0.41 per share to be paid on September 29, 2025 to shareholders of record as of September 15, 2025. As a mortgage investment corporation, we pay out all of our taxable income to shareholders through dividends. "We recorded quality results for the second quarter of 2025 up 22% from Q1 2025 and 2% from Q2 2024. We continue to leverage our brand and exceptional customer service to take advantage in the marketplace, with record originations in our insured residential lending business while maintaining our spreads. Although we recorded higher provisions for credit losses than the prior year, our credit quality remains resilient as it has since our founding," said Derek Sutherland, CEO of MCAN. "In July 2025, we launched a new uninsured residential mortgage third-party securitization program with one of the major Canadian banks which will add to our securitization income and allow us to grow our uninsured originations. Looking ahead, we are focused on tapping new growth opportunities to drive value for all our stakeholders." HIGHLIGHTS Total assets reached $5.7 billion at June 30, 2025, a net increase of $391 million (7.3%) from December 31, 2024. Non-securitized mortgage portfolio totalled $2.7 billion at June 30, 2025, a net increase of $277 million (11%) from December 31, 2024. Uninsured residential mortgages totalled $1.2 billion at June 30, 2025, a net increase of $53 million (5%) from December 31, 2024. Uninsured residential mortgage originations totalled $231 million for YTD 2025, an increase of $34 million (17%) from YTD 2024. The economic and interest rate environment and its impact on the housing market and borrowers had improved somewhat due to expectations about further interest rate cuts. We had steady uninsured residential mortgage renewal rates with renewals of $245 million for YTD 2025 compared to $259 million for YTD 2024. This business is supported by outstanding service to our brokers, originators and customers. Construction and commercial mortgages totalled $1.2 billion at June 30, 2025, a net increase of $77 million (7%) from December 31, 2024. In 2025, the movement in the construction and commercial portfolios is attributed to new loan advances of $323 million in construction and commercial mortgages, slightly offset by repayments from completing projects. Originations have been steady this year and some extensions of projects due to normal construction delays or normal delays relating to the permitting and zoning process meant that we have not experienced as much run-off in the portfolio as expected. To date, projects continue to progress toward completion. Securitized mortgages totalled $2.4 billion at June 30, 2025, a net increase of $9 million (0.4%) from December 31, 2024. Our insured residential mortgage securitization volumes were $211 million in Q2 2025, an increase of $54 million (34%) from Q2 2024 and $264 million YTD 2025, a decrease of $107 million (29%) from YTD 2024. We use various channels in funding the insured residential mortgage portfolio, in the context of market conditions and net contributions over the life of the mortgages, in order to support our overall business. We have seen better securitization spreads compared to prior year. Beginning in July 2025, we have an agreement with a Canadian Schedule I Chartered bank to participate in an uninsured residential mortgage third-party securitization program sponsored by the bank. Under this agreement, we can sell our uninsured residential mortgages into the program and they remain in the program until maturity. In July 2025, we sold $80.2 million into this program. This is an integral part of our diversification and capital optimization strategy. FINANCIAL UPDATE Net non-securitized mortgage spread income1 increased by $0.5 million for Q2 2025 from Q2 2024 mainly due to a higher average non-securitized mortgage portfolio balance from mortgage portfolio growth, offset by a reduction in the spread of non-securitized mortgages over term deposit interest and expenses. For YTD 2025, net non-securitized mortgage spread income1 decreased by $1.2 million from YTD 2024 mainly due to a reduction in the spread of non-securitized mortgages over term deposit interest and expenses partially offset by a higher average non-securitized mortgage portfolio balance from continued originations and renewals. Net securitized mortgage spread income1 increased by $0.5 million for Q2 2025 from Q2 2024 and increased $1.0 million YTD 2025 from YTD 2024 due to a higher average securitized mortgage portfolio balance and an increase in the spread of securitized mortgages over liabilities. For Q2 2025, we had a provision for credit losses on our non-securitized mortgage portfolio of $2.2 million compared to a provision for credit losses of $1.4 million in Q2 2024. For YTD 2025, we had a provision for credit losses on our non-securitized mortgage portfolio of $5.3 million compared to a provision for credit losses of $0.8 million for 2024. Equity income from MCAP Commercial LP totalled $9.7 million in Q2 2025, an increase of $2.0 million (26%) from $7.7 million in Q2 2024, and totalled $15.3 million for YTD 2025, an increase of $0.4 million (3%) from $14.9 million for YTD 2024. Credit Quality Arrears total mortgage ratio1 was 2.49% at June 30, 2025 compared to 2.24% at March 31, 2025 and 2.06% at December 31, 2024. The majority of our residential mortgage arrears activity occurs in the 1-30 day category, in which the bulk of arrears are resolved and do not migrate to arrears categories over 30 days. While greater than 30 days arrears has increased in our uninsured residential mortgages, we believe overall that we have a quality uninsured residential mortgage loan portfolio with an average LTV of 64.0% at June 30, 2025 compared to 64.3% at March 31, 2025 and 63.7% at December 31, 2024 based on an industry index of current real estate values. With respect to our construction and commercial loan portfolio, we have a strong track record with our default management processes and asset recovery programs as the need arises. Impaired non-securitized mortgage ratio1 was 2.34% at June 30, 2025 compared to 2.31% at March 31, 2025 and 2.46% at December 31, 2024. At June 30, 2025, impaired mortgages mainly represent five impaired construction mortgages as well as uninsured residential mortgages where asset recovery programs have been initiated or we expect the loans to be brought current. Impaired total mortgage ratio1 was 1.25% at June 30, 2025 compared to 1.20% at March 31, 2025 and 1.25% at December 31, 2024. Capital We have a Base Shelf prospectus allowing us to make certain public offerings of debt or equity securities during the period that it is effective, through Prospectus Supplements. Our Base Shelf prospectus and our Prospectus Supplement for our ATM Program expire in September 2025 and we intend to renew both. We have an ATM Program, established pursuant to a Prospectus Supplement to our Base Shelf prospectus, allowing us to issue up to $30 million common shares to the public from time to time at the market prices prevailing at the time of sale. In Q2 2025, we sold 305,700 common shares at a weighted average price of $19.37 for gross proceeds of $5.9 million and net proceeds of $5.6 million including $0.1 million of agent commission paid and $0.2 million of other share issuance costs under the ATM Program. So far in 2025, we sold 366,900 common shares at a weighted average price of $19.19 for gross proceeds of $7.0 million and net proceeds of $6.7 million including $0.1 million of agent commission paid and $0.2 million of other share issuance costs under the ATM Program. At June 30, 2025, we have $13.9 million remaining available to be issued through our ATM Program. The volume and timing of distributions under the ATM Program are determined at MCAN's sole discretion. We issued $2.5 million in new common shares in Q2 2025 compared to $4.4 million in Q2 2024 and $7.0 million YTD 2025 compared to $12.5 million YTD 2024 through the Dividend Reinvestment Plan ("DRIP"). The DRIP participation rate for the 2025 second quarter dividend was 15% compared to 30% for the second quarter of 2024. Income tax assets to capital ratio3 was 5.42 at June 30, 2025 compared to 5.41 at March 31, 2025 and 5.24 at December 31, 2024. Common Equity Tier 1 ("CET 1") and Tier 1 Capital to risk-weighted assets ratios2 were 18.90% at June 30, 2025 compared to 19.12% at March 31, 2025 and 19.02% at December 31, 2024. Total Capital to risk-weighted assets ratio2 was 19.22% at June 30, 2025 compared to 19.43% at March 31, 2025 and 19.28% at December 31, 2024. Leverage ratio2 was 9.32% at June 30, 2025 compared to 9.64% at March 31, 2025 and 9.72% at December 31, 2024. All of our capital and leverage ratios are within our internal risk appetite and regulatory guidelines. 1 Considered to be a non-GAAP and other financial measure. For further details, refer to the "Non-GAAP and Other Financial Measures" section of this new release. Non-GAAP and other financial measures and ratios used in this document are not defined terms under IFRS and, therefore, may not be comparable to similar terms used by other issuers. 2 These measures have been calculated in accordance with OSFI's Leverage Requirements and Capital Adequacy Requirements guidelines. 3 Tax balances are calculated in accordance with the Tax Act. FURTHER INFORMATION See our complete 2025 Second Quarter Report filed on the System for Electronic Document Analysis and Retrieval ("SEDAR+") at and on the Company's website at For our Outlook, refer to the "Outlook" section of the 2025 Second Quarter Report. MCAN is a public company listed on the Toronto Stock Exchange under the symbol MKP and is a reporting issuer in all provinces and territories in Canada. MCAN also qualifies as a Mortgage Investment Corporation ("MIC") under the Income Tax Act (Canada). MCAN is the largest MIC in Canada and the only federally regulated MIC that issues term deposits eligible for Canada Deposit Insurance Corporation deposit insurance. MCAN's primary objective is to generate a reliable stream of income by investing in a diversified portfolio of Canadian mortgages, including residential mortgages, residential construction, non-residential construction, and commercial loans, as well as other types of securities, loans, and real estate investments. MCAN is Investing in Communities and Homes for Canadians. For how to enroll in the DRIP, please refer to the Management Information Circular dated March 21, 2025 or visit our website at Under the DRIP, dividends paid to shareholders are automatically reinvested in common shares issued out of treasury at the weighted average trading price for the five days preceding such issue less a discount of 2% until further notice from MCAN. NON-GAAP AND OTHER FINANCIAL MEASURESThis news release references a number of non-generally accepted accounting principles ("non-GAAP") and other financial measures and ratios to assess our performance such as return on average shareholders' equity, net non-securitized mortgage spread income, net securitized mortgage spread income, impaired non-securitized mortgage ratio, impaired total mortgage ratio, and arrears total mortgage ratio. These measures are not calculated in accordance with International Financial Reporting Standards ("IFRS"), are not defined by IFRS and do not have standardized meanings that would ensure consistency and comparability between companies using these measures. These metrics are considered to be non-GAAP and other financial measures and are incorporated by reference and defined in the "Non-GAAP and Other Financial Measures" section of our 2025 Second Quarter Management's Discussion and Analysis of Operations ("MD&A") available on SEDAR+ at Below are reconciliations for our non-GAAP financial measures included in this news release using the most directly comparable IFRS financial measures. Net Non-securitized Mortgage Spread Income Non-GAAP financial measure that is an indicator of net interest profitability of income-earning assets less cost of funding for our non-securitized mortgage portfolio. It is calculated as the difference between non-securitized mortgage interest and term deposit interest and expenses. (in thousands) Q2 Q2 Change YTD YTD Change For the Periods Ended June 30 2025 2024 ($) 2025 2024 ($) Mortgage interest - non-securitized assets $ 46,882 $ 48,422$ 92,030 $ 96,430Term deposit interest and expenses 25,502 27,52650,384 53,596Net Non-securitized Mortgage Spread Income $ 21,380 $ 20,896 $ 484 $ 41,646 $ 42,834 $ (1,188) Net Securitized Mortgage Spread IncomeNon-GAAP financial measure that is an indicator of net interest profitability of income-earning securitization assets less cost of securitization liabilities for our securitized mortgage portfolio. It is calculated as the difference between securitized mortgage interest and interest on financial liabilities from securitization. (in thousands) Q2 Q2 Change YTD YTD Change For the Periods Ended June 30 2025 2024 ($) 2025 2024 ($) Mortgage interest - securitized assets $ 18,960 $ 14,695$ 37,702 $ 28,035Interest on financial liabilities from securitization 16,276 12,49332,312 23,680Net Securitized Mortgage Spread Income $ 2,684 $ 2,202 $ 482 $ 5,390 $ 4,355 $ 1,035 A CAUTION ABOUT FORWARD-LOOKING INFORMATION AND STATEMENTS This news release contains forward-looking information within the meaning of applicable Canadian securities laws. All information contained in this news release, other than statements of current and historical fact, is forward-looking information. All of the forward-looking information in this news release is qualified by this cautionary note. Often, but not always, forward-looking information can be identified by the use of words such as "may," "believe," "will," "anticipate," "expect," "planned," "estimate," "project," "future," and variations of these or similar words or other expressions that are predictions of, or indicate, future events and trends and that do not relate to historical matters. Forward-looking information in this news release includes, among others, statements and assumptions with respect to: the current business environment, economic environment and outlook; possible or assumed future results; our ability to create shareholder value; our business goals and strategy; the potential impact of new regulations and changes to existing regulations as well as any changes in tax legislation; the stability of home prices; the effect of challenging conditions on us; the performance of our investments; factors affecting our competitive position within the housing lending market; international trade, including changes in tariffs, international economic uncertainties, failures of international financial institutions and geopolitical uncertainties and their impact on the Canadian economy; sufficiency of our access to liquidity and capital resources; the timing and effect of interest rate changes on our cash flows; and the declaration and payment of dividends. Forward-looking information is not, and cannot be, a guarantee of future results or events. Forward-looking information reflects management's current beliefs and is based on information currently available to management. Forward-looking information is based on, among other things, opinions, assumptions, estimates and analyses that, while considered reasonable by us at the date the forward-looking information is provided, inherently are subject to significant risks, uncertainties, contingencies and other factors that may cause actual results and events to be materially different from those expressed or implied by the forward-looking information. The material factors or assumptions that we identified and were applied by us in drawing conclusions or making forecasts or projections set out in the forward-looking information, include, but are not limited to: our ability to successfully implement and realize on our business goals and strategy; government regulation of our business and the cost to us of such regulation; factors and assumptions regarding interest rates, including the effect of Bank of Canada actions already taken; the effect of supply chain issues; the effect of inflation; housing sales and residential mortgage borrowing activities; the effect of household debt service levels; the effect of competition; systems failure or cyber and security breaches; the availability of funding and capital to meet our requirements; investor appetite for securitization products; the value of mortgage originations; the expected spread between interest earned on mortgage portfolios and interest paid on deposits; the relative uncertainty and volatility of real estate markets; acceptance of our products in the marketplace; the stage of the real estate cycle and the maturity phase of the mortgage market; impact on housing demand from changing population demographics and immigration patterns; our ability to forecast future changes to borrower credit and credit scores, loan to value ratios and other forward-looking factors used in assessing expected credit losses and rates of default; availability of key personnel; our operating cost structure; the current tax regime; and operations within, and market conditions relating to, our equity and other investments. External geopolitical conflicts and government and Bank of Canada economic policy have resulted in uncertainty relating to the Company's internal expectations, estimates, projections, assumptions and beliefs, including with respect to the Canadian economy, employment conditions, interest rates, supply chain issues, international trade, inflation, levels of housing activity and household debt service levels. There can be no assurance that such expectations, estimates, projections, assumptions and beliefs will continue to be valid. The impacts that any further or escalating geopolitical conflicts will have on our business is uncertain and difficult to predict. Reliance should not be placed on forward-looking information because it involves known and unknown risks, uncertainties and other factors, which may cause actual results to differ materially from anticipated future results expressed or implied by such forward-looking information. Factors that could cause actual results to differ materially from those set forth in the forward-looking information include, but are not limited to, the risk that any of the above opinions, estimates or assumptions are inaccurate and the other risks and uncertainties referred to in our Annual Information Form for the year ended December 31, 2024, our MD&A and our other public filings with the applicable Canadian regulatory authorities. Subject to applicable securities law requirements, we undertake no obligation to publicly update or revise any forward-looking information after the date of this news release whether as a result of new information, future events or otherwise or to explain any material difference between subsequent actual events and any forward-looking information. However, any further disclosures made on related subjects in subsequent reports should be consulted. 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Swiss Water Reports Second Quarter 2025 Results
VANCOUVER, British Columbia, Aug. 06, 2025 (GLOBE NEWSWIRE) -- Swiss Water Decaffeinated Coffee Inc. (TSX:SWP) ('Swiss Water' or 'the Company'), a leading specialty coffee company and premium green coffee decaffeinator, today reported financial results for the three and six months ended June 30, 2025. All amounts are expressed in Canadian dollars unless otherwise stated. Second Quarter 2025 Highlights Q2'25 processed volumes remained relatively stable over Q2'24; Revenue of $67.7 million, an increase of 56% over Q2'24; Net Loss of $0.4 million, a decrease of $1.3 million over Q2'24; Adjusted EBITDA of $1.8 million, a decrease of $2.7 million or 59% over Q2'24; The NY'C' coffee futures price for Arabica coffee remained volatile during Q2'25, peaking at US$4.10/lb in April. During Q2'25, the NY'C' averaged US$3.59/lb, compared to an average of US$2.20/lb in Q2'24, an increase of 64%; Operating credit facility renewed and expanded to $80M; Agreement with Mill Road Capital to repurchase and cancel outstanding warrants. Year to Date 2025 Highlights Year to date processed volumes increased 2% over 2024; Revenue of $130.0 million, an increase of 58% over 2024; Net income of $0.1 million, an increase of $0.05 million over 2024; Adjusted EBITDA of $3.8 million, a decrease of $3.4 million or 47% over 2024; 'We are pleased to have delivered volume growth and stable net income during the first six months of this year, reflecting the ongoing strength of our customer relationships and the resilience of our business. Despite solid volume performance, our year-over-year second quarter profitability was adversely effected by losses from rolling forward hedge positions within an inverted market, depreciation of the U.S. dollar, increased production costs due to our strategic decision to reduce finished goods inventory, and the front loading of maintenance costs in 2025. In any period, material variances in revenue and Adjusted EBITDA versus prior year can arise due primarily to volatility in commodity pricing and foreign exchange rates. Through our risk management activities, we hedge versus this volatility so that over time, the Adjusted EBITDA and net income reflect pure operating performance exclusive of these volatile factors. We expect the industry specific volatility that effected our second quarter to be temporary and reverse year-to-go,' said Frank Dennis, CEO of Swiss Water. 'In addition, I am delighted that during the second quarter, we executed initiatives to materially strengthen our balance sheet. We renewed and expanded our operating credit facility, continued to repay construction debt, and reached an agreement to repurchase and cancel the Mill Road Capital warrants. These steps continue to enhance our financial flexibility and support our long-term strategy.' Summary of Operational Performance Total processing volumes in pounds for the first half increased by 2% when compared to 2024, supported by continued customer demand and strong order flow. With all production now fully consolidated in Delta and both decaffeination lines running 24/7, except for planned maintenance, we have returned to a more predictable distribution of sales, reflecting both operational momentum and a growing, stable customer base. The NY'C' coffee futures price for Arabica coffee remained volatile during Q2, peaking at US$4.10/lb in April 2025. Spot availability of coffees remains very low, and pressure on the futures market intensified during the quarter. Moving forward, the higher prices and inverted coffee futures market may result in a softening of consumer demand and volumes shipped to importers. During the first quarter of 2025, the US administration signalled its intention to impose blanket tariffs on Mexican and Canadian imports. Swiss Water's decaffeination process has been formally classified by US customs as 'non-transformational', allowing processed beans to retain the original country-of-origin status for tariff purposes. As a result, Swiss Water's exports to the US were not subject to tariffs during the three months ended March 31, 2025, but were subject to a 10% blanket tariff rate, or the applicable tariff rate of the country of origin of the coffee in Q2. Summary of Financial Results In C$ '000s 3 months ended June 30 6 months ended June 30 except for per share amounts 2025 2024 $ Change % Change 2025 2024 % Change % Change Revenue 67,695 43,372 24,323 56 % 129,967 82,102 47,865 58 % Cost of sales (62,447 ) (35,707 ) (26,740 ) 75 % (117,432 ) (69,322 ) (48,110 ) 69 % Gross profit 5,248 7,665 (2,417 ) -32 % 12,535 12,780 (245 ) -2 % Operating expenses (3,864 ) (3,917 ) 53 -1 % (7,253 ) (7,668 ) 415 -5 % Operating income 1,384 3,748 (2,364 ) -63 % 5,282 5,112 170 3 % Non-operating or other (2,005 ) (2,077 ) 72 -3 % (5,232 ) (4,565 ) (667 ) 15 % Income (loss) before tax 247 (724 ) 971 -134 % 91 (500 ) 591 -118 % Net income (loss) (374 ) 947 (1,321 ) -139 % 141 47 94 200 % Adjusted EBITDA (1) 1,828 4,484 (2,656 ) -59 % 3,836 7,272 (3,436 ) -47 % Earnings (loss) per share (2) Basic (0.04 ) 0.10 0.01 0.01 Diluted (0.10 ) 0.07 (0.16 ) 0.01 1 Adjusted EBITDA is defined in the 'Reconciliation of Non-IFRS Measures' section of the Management Discussion and Analysis and is a 'Non-GAAP Financial Measure' as defined by CSA Staff Notice 52-306.2 Per-share calculations are based on the weighted average number of shares outstanding during the periods. Diluted earnings per share take into account shares that may be issued upon the exercise of warrants and equity-based RSUs. Revenue for the three and six months ended June 30, 2025, was $67.7 million and $130.0 million, which represents a $24.3 million or 56% increase and a $47.9 million or 58% increase, when compared to the same periods in 2024. The increase was primarily driven by a higher NY'C' coffee futures price and enhanced further by volume growth, tariff inclusion and pricing initiatives within our distribution business. Gross profit for the three and six months ended June 30, 2025, was $5.2 million and $12.5 million, which represents a $2.4 million or 32% decrease and a $0.2 million or 2% decrease, when compared to the same periods in 2024. In Q2, the decrease was primarily driven by foreign exchange losses on green coffee cost recovery associated with the depreciating US$ dollar, front loading of maintenance costs for our production lines, as well as the reversal of an inventory provision in 2024, which increased gross profit in 2024. There was no such reversal in 2025. Year to date, the decrease was primarily driven by the year-over-year effect of the reversal of an inventory provision in 2024 and the front loading of maintenance costs for our production lines in 2025, partially offset by volume growth and lower utility charges. Gross margin percentage for the three and six months ended June 30, 2025, was 8% and 10%, versus 18% and 16% compared to the same periods in 2024. The decline in gross margin percentage was mainly due to a significant increase in green coffee revenue within our revenue stream sales mix, which has materially lower percentage margins than our other revenue streams, but higher dollar per pound or absolute margins, as well as the factors previously described. For the three and six months ended June 30, 2025, we recorded net loss after taxes of $0.4 million and net income after taxes of $0.1 million, compared to a net income after taxes of $0.9 million and $0.05 for the same periods in 2024. The decrease in Q2 was primarily driven by a decrease in gross profit, as described above, and higher than expected losses from rolling forward hedge positions within an inverted market. The increase year to date was primarily driven by a gain on the fair value of borrowings embedded option, reduced net finance expense, partially offset by higher expected losses from rolling forward hedge positions within an inverted market. Revised pricing initiatives are in place and are expected to fully recover these incremental hedge losses year-to-go. However, because the recovery occurs when sales are shipped and invoiced and not when contracts are rolled, this creates a time lag in the recovery of these costs, and has adversely effected the distribution of net income between quarters. Adjusted EBITDA Swiss Water defines Adjusted EBITDA as net income before interest, depreciation, amortization, impairments, share-based compensation, gains/losses on foreign exchange, gains/losses on disposal of property and capital equipment, fair value adjustments on embedded options, loss on extinguishment of debt, adjustment for the impact of IFRS 16 - Leases, and provision for income taxes and other non-cash gains related to a remeasurement of asset retirement obligation. The Company's definition of Adjusted EBITDA also excludes unrealized gains and losses on the undesignated portion of foreign exchange forward contracts. The reconciliation of net income, an IFRS measure, to Adjusted EBITDA is as follows: In C$ '000s 3 months June 30 6 months June 30 2025 2024 2025 2024 Net income (loss) $ (374 ) $ 947 $ 141 $ 47 Income tax (recovery) expense (247 ) 724 (91 ) 500 Income (loss) before tax $ (621 ) $ 1,671 $ 50 $ 547 Finance income (362 ) (446 ) (740 ) (906 ) Finance expense 1,702 2,293 3,420 4,581 Depreciation & amortization 1,850 1,679 3,628 3,395 Unrealized (gain) loss on foreign exchange forward contracts 54 26 71 (12 ) Fair value (gain) loss on the embedded option (546 ) (83 ) (1,657 ) 808 (Gain) loss on foreign exchange 110 (206 ) 269 (586 ) Share-based compensation 275 189 67 724 Impact of IFRS 16 - Leases (634 ) (639 ) (1,272 ) (1,279 ) Adjusted EBITDA $ 1,828 $ 4,484 $ 3,836 $ 7,272 Subsequent Event On July 3, 2025, the Company completed an agreement with Mill Road Capital to purchase from Mill Road Capital the outstanding share purchase warrants entitling Mill Road Capital to acquire up to 2.25 million common shares of the Company. The share purchase warrants had an exercise price of $3.33 per share and were to expire on April 30, 2026. The purchase price for the share purchase warrants was $0.7 million. The payment was executed on July 3, 2025, and the outstanding warrants were cancelled. Call Details A conference call to discuss Swiss Water's recent financial results will be held on Thursday, August 7, 2025, at 1:00 pm Pacific (4:00 pm Eastern). To access the conference call, please dial: (toll-free) or (international); Listeners will be prompted to provide If a listener does not have this code, they can reference the as an alternative passcode. A replay will be available through August 21, 2025, at 1-877-481-4010 (toll-free) or 1-919-882-2331 (international); replay passcode: 52720 A more detailed discussion of Swiss Water Decaffeinated Coffee Inc.'s recent financial results is provided in the Company's Management Discussion and Analysis filed on SEDAR+ and Swiss Water's website ( For more information, please contact: Iain Carswell, Chief Financial OfficerSwiss Water Decaffeinated Coffee 1-604-420-4050Email: investor-relations@ About Swiss Water Swiss Water Decaffeinated Coffee Inc. is a leading specialty coffee company and a premium green coffee decaffeinator that employs the proprietary Swiss Water® Process to decaffeinate green coffee without the use of chemical solvents such as methylene chloride. It also owns Seaforth Supply Chain Solutions Inc., a green coffee handling and storage business. Both businesses are located in Delta, British Columbia, Canada. Forward-Looking Statements Certain statements in this press release may constitute 'forward-looking' statements that involve known and unknown risks, uncertainties and other factors that may cause the actual results, levels of activity, performance, or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. When used in this press release, such statements may include such words as 'may', 'will', 'expect', 'believe', 'plan', 'anticipate' and other similar terminology. These statements reflect management's current expectations regarding future events and operating performance, as well as management's current estimates, which are based on numerous assumptions and may prove to be incorrect. These statements are neither promises nor guarantees but involve known and unknown risks and uncertainties, including, but not limited to, risks related to processing volumes and sales growth, operating results, the supply of utilities, the supply of coffee and packaging materials, supply of labour force, general industry conditions, commodity price risks, technology, competition, foreign exchange rates, construction timing, costs and financing of capital projects, a potential impact of any pandemics, global and local climate changes, changes in interest rates, inflation, transportation availability, and general economic conditions. The forward-looking statements and financial outlook information contained herein are made as of the date of this press release and are expressly qualified in their entirety by this cautionary statement. Except to the extent required by applicable securities law, Swiss Water undertakes no obligation to publicly update or revise any such statements to reflect any change in management's expectations or in events, conditions, or circumstances on which any such statements may be based, or that may affect the likelihood that actual results will differ from those described.
