THE FIRST HALF OF 2025 HAS BEEN A PERIOD OF RAPID DEVELOPMENT, ADAPTATION TO A NEW REALITY, AND IMPORTANT STRATEGIC CHOICES FOR KALVE. TWO OF OUR CORE VALUES – COURAGE AND SUSTAINABILITY – HAVE SHAPED THIS JOURNEY.
Over the past months, we have made bold and future-oriented decisions to move closer to our long-term vision: establishing KALVE as a recognised brand not only in the Baltics but across several European markets. We are proud to contribute to the growth of the Baltic specialty coffee culture, having opened three new concept locations in Tallinn and one in Vilnius until the end of July.
At the same time, in line with our ambition to expand into larger markets, we have begun preparations to open two new fully-owned coffee shops in Paris (France) and to establish a KALVE representative in Portugal. We continue to explore opportunities in other markets, with active research and groundwork being laid for future expansion.
Our strategic direction remains clear: long-term growth, bold yet deliberate decision-making, and unwavering commitment to the values that define who we are. We move forward with confidence, energy, and a continuous learning mindset – building a sustainable future for KALVE and our community of partners and shareholders.
The first half of 2025 has brought continued turbulence in the global coffee market. Ongoing uncertainty around harvest forecasts, international tariffs, and geopolitical instability has kept the C arabica price on the NY market highly volatile and difficult to predict. These conditions have directly contributed to higher raw material costs during this period. However, as we move into the second half of the year, we are beginning to see signs of greater market stability and predictability. This gives us a solid foundation for planning ahead.
Thanks to our long-standing relationships with producer partners, we have already secured favourable pricing for the majority of our projected 2026 coffee volumes. These agreements not only shield us from future price volatility but also support more consistent planning and pricing for both our B2B and B2C customers.
Following a recent visit to our producer partners in Brazil, we were encouraged by their optimism regarding the 2026 harvest. If conditions remain stable, we anticipate a strong yield — a development that would positively impact global supply and market pricing. Despite the challenges in the commodity market, our team’s expertise and commitment to quality have continued to shine.
We are proud to share that we won the Roast Masters 2025 competition in Amsterdam — one of the most prestigious roasting competitions in the world. This marks our third year competing and our first time taking home the title, a recognition of the dedication and craftsmanship that define Kalve Coffee.
Looking ahead, we remain confident and optimistic. Our strategic progress in both the B2B and B2C segments is laying a strong foundation for future growth. We are grateful for your continued support and are excited to move forward with clarity, focus, and ambition.
We are revising our 2025 H2 business development plan and EBITDA financial guidance. AS Kalve Coffee (the Company) is revising its 2025 business development plan in the second half of the year, shifting focus towards long-term value creation and accelerating its non-Baltic expansion.
As a result, the Company is lowering its EBITDA financial guidance for 2025 from €1.2 million to approximately €0.3 million.
This updated forecast follows a comprehensive review of the second-half operational plans, with a strategic decision to accelerate non-Baltic market entry. KALVE Coffee has initiated preparations to enter the markets of France and Portugal, a move originally planned for 2026 and beyond. The revision also includes investing additional resources into improving and finalising its e-commerce platform.
The lowered guidance reflects a strategic shift that prioritises long-term growth over immediate revenue. This includes less revenue in 2025 as no further coffee shops are set to generate significant revenue this year, coupled with slower revenue ramp-up in our new coffee shops. Additionally, the decision to shift non-capitalisable costs from 2026 to 2025 contributes to this adjustment. Reduced revenue expectations for the whole of 2025, combined with investments into a scalable infrastructure, have created a slight overhead imbalance, including so far this year.
While these adjustments impact short-term revenue and EBITDA, they are designed to accelerate expansion plans outside the Baltic countries and bolster the Company's digital presence.
AS KALVE Coffee remains fully committed to its presence in the Lithuanian and broader Baltic markets and will continue to actively seek new locations for future coffee shop openings.