Swiss Water Decaffeinated Coffee Inc.

Good day. Welcome to the Swiss Water Decaffeinated Coffee Inc. second quarter 2026 conference call. At this time, all participants are in listen-only mode. A question and answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. Please note this conference is being recorded. Before Swiss Water Decaffeinated Coffee Inc. conference call starts, they are required to remind you that certain information in today's presentation is forward-looking in nature. Any such forward looking information or statements are based on assumptions that they considered reasonable at the time the information was prepared. Such information involves known and unknown risks, uncertainties, and other factors outside of our control that could cause actual results to differ materially from those expressed in the forward looking information. Swiss Water Decaffeinated Coffee Inc. does not assume responsibility for the accuracy and completeness of the forward looking information. Similarly, They do not undertake any obligation to publicly revise this forward-looking information to reflect subsequent events or circumstances, except as required by law. Please refer to Swiss Water Decaffeinated Coffee Inc.'s managements, discussions, and analysis posted on CDAR and Swiss Water's website for a full discussion regarding forward-looking statements and the risks therein. I want to turn the conference over to your host, Frank Dennis, President and CEO at Swiss Water Decaffeinated Coffee Inc. You may begin. Thank you, Paul.

Good afternoon, everyone, and thank you for joining us today. I'm Frank Dennis, President and CEO of Swiss Water Decaffeinated Coffee Inc. Joining me on the call is Iain Carswell, our CFO. We're here today to discuss our results for the three and six months ended June 30th, 2026. And as usual, I'll give a brief overview of our performance and the operating environment. Ian will walk through the financials in more detail, and I'll come back with a few closing thoughts before we open the line for questions. This was a very strong quarter for Swiss Water, and with the momentum in the business, including a solid order book, a growing brand, and a rapidly improving balance sheet, we believe we're well positioned heading into 2027. Given that improving outlook, we intend to seek TSX approval for a share repurchase program under a normal course issuer bid, or NCIB. We believe our share price could be undervalued over the coming year based on our financial performance and future prospects, and that repurchasing shares alongside continued debt reduction is an appropriate use of funds to increase shareholder value. The NCIB is subject to TSX acceptance, and we'll provide an update on that once it is available. For the last several quarters, we've said that when coffee prices came off their highs and the inversion eased, our customers would return to the market. That's exactly what happened in the second quarter. Processing volumes were up 17% over the second quarter of last year and now 8% year-to-date. That growth was supported by strong demand from our established customers, solid spot order flow, and incremental volume from new customers. Our production lines operate at very high levels of capacity utilization throughout the quarter.

and our forward order book is as strong as we've seen it, with customers booking well into the first quarter of 2027.