FROM THE BALTIC TO THE EUROPEAN METROPOLITAN
Dear shareholders and members of the KALVE community!
We wanted to call 2024 a year of transformation, but 2025 became the moment when this transformation took on a real shape and international scale. In 2024, we laid the foundations, with our shares admitted to trading on the Nasdaq Baltic First North exchange, in 2025 we increased production capacity and strengthened management. Today we can confidently say that KALVE is no longer just a brand in Latvia. We have declared ourselves on the big European stage.
Courage and a look into the future are the driving forces of KALVE's growth. 2025 was a period of rapid development and adaptation for us. We successfully entered the Tallinn and Vilnius markets, bringing to life our core value – quality and accessibility. However, our biggest strategic move in 2025 was the opening of two coffee shops in Paris, a city currently experiencing a renaissance and which has become the European hub for Specialty Coffee. Our locations in the 15th district Rue Desaix and the 9th district Rue de Caumartin are not just coffee shops, they are bastions of the KALVE brand in a market where consumers value quality, craftsmanship and products with a story above all else.
The potential of the industry and the strategic choice to expand into Western Europe are based on data, together with management's long-running insights from daily exposure and connections to the industry. The European specialty coffee market is experiencing a rapid rise - it is predicted that by 2030 the value of the specialty coffee market will reach approximately 40 billion US dollars (approximately 23 billion US dollars in 2024 - https://www.grandviewresearch.com/horizon/outlook/specialty-coffee-market/europe ), showing steady growth. France is the leader in this context with the fastest predicted growth rate. We are therefore where the future is seen to be.
We have consciously chosen to invest in scalable infrastructure and digital presence, which brought us 142% growth in the e-commerce segment in 2025 compared to 2024. Yes, targeted entry into new markets requires resources and challenges our profit indicators in the short term, but these are investment decisions to create maximum added value for the KALVE brand and focus on long-term returns for our shareholders.
We are currently actively conducting research and preparatory work for the next steps of development, as well as the establishment of a representative office in Portugal. We continue to grow as a B-Corp certified company, proving that sustainability and profit are not mutually exclusive concepts, but a common engine.
Our strategic direction is clear - long-term growth, bold but thoughtful decision-making and an unwavering commitment to following the values that define who we are.
Thank you for being with us on this journey. With optimism, a motivated team and a clear vision, we continue to build KALVE into a global quality brand.
With gratitude,
Gatis Zēmanis
Chairman of the Board
COFFEE INDUSTRY REPORT – REFLECTIONS & FUTURE OUTLOOK
As we step into 2026, I want to start with an important thank you. Our first year as a public company would not have been possible without your trust and support. Choosing this path was a big decision for us, but it allows us to grow without letting go of what matters most for us - our values.
After a long period of uncertainty, the Arabica market is finally showing signs of stability. Prices remain high, yet thanks to long-term relationships with our producer partners, we have secured favourable contracts that will carry us well into the second half of 2026. Even more encouraging are the first signals coming from Brazil, where farmers are reporting a strong upcoming harvest, so we may see positive movement in the market from April onwards. Still, our direction is clear: we will continue paying well above the C price, because great coffee only exists when the people behind it can thrive.
As we grow, our responsibility toward producers grows with us. Over the past year, we have strengthened relationships that truly represent what KALVE stands for.
After winning Roast Masters 2025, we began a long-term partnership with Jeremy Pedraza from La Joya farm in Colombia. The new harvest has arrived, and we are proud to purchase the full microlot at a premium price. What started as a spot purchase has now become a shared journey.
In Brazil, our partnership with Sancoffee, and in this example, smallholder farmer Arlindo Cunha from the Fagundes Community continues to deepen. This season brought challenges caused by weather, which impacted the taste quality of the coffee, yet we chose to stand by our handshake agreement - purchasing his entire harvest at microlot pricing. We believe long-term trust matters more than short-term margins, and this commitment helps secure both quality and stability for the future.
We also joined a global initiative with Raw Material to support coffee communities in Timor-Leste. With a €4,500 contribution, we are helping create speciality coffee infrastructure that will directly support 11 farming families. Later this year, we will also receive 600 kg of coffee from a dedicated Kalve Coffee lot, closing the loop between impact and quality.
As for B2B, 2025 became our strongest year so far, with 31% growth compared to the previous year. This was made possible by one key change: bringing sales, technical service, and administration together into one aligned growth team. The results were not only stronger numbers, but also better collaboration, faster problem-solving, and a stronger team spirit.
Our commitment to coffee excellence continues to grow as well. Since the last report, three more team members have joined World Coffee Championship judging panels across Europe. At the same time, two colleagues in Lithuania are preparing to compete in the Brewers Cup Finals, carrying both their personal ambition and KALVE’s values onto the competition stage.
The past year brought challenges, pressure, learning, and many proud moments. Now we enter a phase of consolidation - strengthening systems, processes, and foundations, so that future growth remains healthy and sustainable.
Thank you for walking this road with us. The journey is only getting started.
Warm regards,
Raimonds Selga
CGO and Member of the Board
FINANCE MANAGEMENT REPORT
As we close out 2025, I am pleased to share our financial journey through a year of significant strategic transformation. The equity raised in December 2024, combined with a debt restructuring, provided a fantastic springboard for the opportunities we’ve pursued over the last twelve months.
We put this capital to work, making crucial investments across every corner of the business. This included opening seven new coffee shops across Riga, Tallinn, Vilnius and Paris. While our baristas were busy preparing delicious coffee, our B2B team was equally active. The number of coffee machines leased to our clients, always paired with our specialty beans, has skyrocketed by 143%. These investments are also expected to bear fruit throughout 2026 and beyond.
This expansion would not have been possible without one crucial backbone: our Roastery. To support growing production rates, we also directed investment into the machinery required to scale our output. In total, we invested €1.4 million in CapEx and other business development expenses.
Today, Kalve operates on a completely different level in terms of our structure, finances, and day-to-day operations:
- A New European Footprint: As of December 2025, Kalve Coffee now consolidates four companies. Kalve Coffee AS has officially welcomed our põhjanaabrid (Kalve Coffee OÜ) in Estonia, our braliukas (Kalve Coffee UAB) in Lithuania, and our consœurs (Kalve Coffee SARL) in France.
- Strong Top-Line Growth: Revenue grew from €3.4 million in 2024 to €5.3 million - an impressive 55% increase with strong contributions from all business lines.
- Asset Growth: Total assets reached €2.8 million by year-end.
- Production Volume: We brewed and sold 109 tons of specialty coffee (up 30 tons from last year).
- The Kalve Family: Our team grew from 56 to 106 employees.
Yes, this rapid scaling came with a short-term trade-off in profitability. Our EBITDA decreased from €322 thousand (or €505 thousand before exceptionals) in 2024 to €155 thousand in 2025, resulting in a net loss of €116 thousand. Our export markets are still working toward their break-even points, and higher-than-expected non-capitalized startup costs, combined with minor delays, led to initial operational losses in these new subsidiaries. However, following a challenging first half of the year in Latvia due to a higher cost base, we made strategic adjustments that led to a successful turnaround. As a result, EBITDA in our home market tripled in H2 2025 compared to H1.
What lies ahead for 2026? With a much stronger infrastructure in place, we are eager to embark on our first full calendar year operating across four countries. We must mature these new locations to reach break-even. This will stabilize our net cash flow following the intensive investment of our IPO funds and allow us to continue investing in our future.
MANAGEMENT GUIDANCE FOR 2026
Based on the current business development plan and assumption of stable economic conditions and the absence of significant geopolitical disruptions in the Baltic region and key supplier markets:
The management sets its 2026 EBITDA Financial Guidance at circa €0.4 million.
Jānis Viesturs Zēgners
CFO, Member of the Board
Contact information:
Gatis Zēmanis
Chairman of the Management Board
+371 27303355
ir@kalvecoffee.com
Certified Advisor:
ZAB Eversheds Sutherland Bitāns SIA
Kārlis Jēkabs Īvāns
M: +371 20 380 986
E-pasts: k-j.ivans@eversheds-sutherland.lv