WE WOULD LIKE TO CALL 2024 A YEAR OF TRANSFORMATION FOR AS KALVE COFFEE (THE ‘COMPANY’), MARKING THE BEGINNING OF KALVE 2.0.

We have been preparing for this transformation since 2021, when we made a strategic decision to develop one of the largest specialty coffee roasters in the Baltic States. We moved the roaster to larger premises and invested in creating a more efficient roaster with the aim of being able to scale our operations geographically.

By bringing one of the Company’s core values – accessibility – to life, we became a member of the Nasdaq Baltic First North exchange in the 4th quarter of 2024 by way of an initial public offering (IPO). This allows us to improve the Company’s governance and gives us the opportunity to develop faster. Last year, we maintained our previous growth rate, achieving our best financial performance to date.

We have opened a new concept – Kalve Living Room – and started working on expanding outside Latvia. But the most important thing is that we have been able to create conditions for further growth, which includes opening our own cafes and stores in Estonia and Lithuania, as well as promoting brand awareness outside the Baltic States.

The year 2025 comes with its own global challenges related to sustainability risks, which means we must continue to base our growth strategy on the principle of win-win outcomes for all stakeholders.

With optimism, energy, a motivated team and a desire to do, we are heading into 2025.

GATIS ZĒMANIS

CEO, Chairman of the Board

2024 COFFEE INDUSTRY REPORT – REFLECTIONS & FUTURE OUTLOOK

2024 was a challenging year for the coffee industry, with soaring market prices, supply chain disruptions, and tightening sustainability regulations. Rising costs and extreme weather conditions impacted producers, but our direct trade model - working hand in hand with KALVE's main green coffee suppliers like the San Coffee cooperative from Brazil and farmers from other regions with a focus on long-term sustainability practices allowed us to maintain stability. By focusing on relationship-based sourcing, we mitigated risks while ensuring high-quality, traceable coffee.

Despite industry challenges, we had a strong year, roasting around 97 tonnes of coffee and importing about 115 tonnes of fully traceable, specialty-quality green coffee from 10 origins. Sancoffee in Brazil remains our key supplier, committed to sustainable farming and producer empowerment.

GROWING WITH EXPERTISE

Our expertise continues to grow. Alina Synkevich, our head roaster, began training as a Licensed Q Arabica Grader, an elite qualification in coffee sensory evaluation. With my existing Q Grader license, we continue to be the most qualified roastery in the Baltics for quality control and green coffee sourcing.

Beyond roasting, I judged at the World Coffee Championships finals in Copenhagen 2024, becoming the first Baltic judge in a world final. I also became a World Coffee Championships Representative in early 2025, one of only 15 in Europe, strengthening our global credibility.

STRENGTHENING PARTNERSHIPS & B2B EXPANSION

We expanded and refined our sourcing partnerships in 2024. The enterprise Raw Material now supplies all our Colombian and East African coffees, ensuring reinvestment into producer communities, with Growing Costa Rica doing that for Costa Rica respectively, while Falcon Coffee and Ally Coffee continue as important partners for other origins.

In B2B, we built a dedicated seven-member team focused on sales, technical support, and after-sales service. We also finalised our Office Coffee Service (OCS) segment, strengthening our equipment lineup. Alongside our HoReCa offerings from Victoria Arduino, Nuova Simonelli, Eureka, and Tone, we became official distributors of Melitta Professional, Rhea Italy and Jura Professional.

2025 – CHALLENGES & OPPORTUNITIES

Looking ahead, high market prices, climate risks, and sustainability regulations will shape 2025. However, our direct trade relationships, expertise, and sustainable sourcing strategy put us in a strong position for growth.

From my experience judging global coffee competitions, the key trends are clear— sustainability, high-value coffee, and research-driven innovation. These align with Kalve’s philosophy, ensuring we stay ahead in an evolving market.

RAIMONDS SELGA

COO, Member of the Board

2024 FINANCE MANAGEMENT REPORT

From a financial perspective, 2024 was a year of both strong growth and strategic investments for future expansion. We achieved a 37% increase in revenue, reaching €3.4 million for the year, with both major Business Lines contributing. Revenue in our Coffee Shops increased by 46% in 2024 compared to 2023, driven by optimisation of revenue generation at existing locations and the expansion of our coffee shop network. Additionally, the B2B business line reached a 24% increase.

At the same time, we laid a solid foundation for future growth. Our successful IPO in December 2024 provided a €1.16 million cash injection, significantly strengthening our financial position. During the year, we allocated €0.35 million towards increasing our coffee shop network and acquiring coffee machines for our B2B segment. We also started upgrading our internet shop and IT infrastructure.

Profitability also improved, with EBIT reaching €204 thousand (compared to €78 thousand in the previous year) and EBITDA increasing to €322 thousand (2023: €164 thousand). These figures include €182 thousand in non-recurring IPO-related costs (covering fees, consulting services, and marketing expenses). Despite these additional costs, we succeeded in improving efficiency. EBIT margin improved by 3% points.

Adjusted for IPO-related costs, EBIT margin reached 11%, further demonstrating our progress in operational efficiency.

All in all, we closed the year with a net profit of €186 thousand, representing a 248% increase compared to the previous year. Free Cash Flow for 2024 was negative at €-232 thousand, reflecting a positive cash flow from operations, offset by €-351 thousand in investments. Cash flow from financing activities was primarily driven by €1.16 million from the IPO and additional debt, supporting our capital investments and reinforcing our financial position for future growth. The financial year closed with a strong net cash position of €1.15 million.

MANAGEMENT GUIDANCE FOR 2025

Based on the assumption of stable economic conditions and the absence of significant geopolitical disruptions in the Baltic region and key supplier markets, the Company targets an EBITDA of EUR 1 200 000 in 2025.

JĀNIS VIESTURS ZĒGNERS

CFO, Member of the Board

About AS Kalve Coffee
AS Kalve Coffee is a brand created by coffee professionals to develop and strengthen the culture of specialty coffee production, preparation and enjoyment in the Baltic region. Kalve Coffee started its operation at the beginning of 2019. KALVE's core values ​​are excellent coffee and service quality, honesty, excellent product design and responsible behaviour in all processes. The Company has obtained the B-Corp sustainability certificate and works on the principle that all parties involved are winners. The Company has created the largest specialty coffee roastery in the Baltics with a production capacity of 60,000 kg per month, thus ensuring efficient coffee production. The Company has its own five cafes/shops in Riga. In 2023 the Company received the "Latvian Sustainable Management Award" from the Bank of Latvia.

Additional information
Gatis Zemanis
Chairman of the Board
+371 27303355
ir@kalvecoffee.com

Certified adviser:
ZAB Eversheds Sutherland Bitāns SIA
Justīne Ignatavičute
E-mail: justine.ignatavicute@eversheds-sutherland.lv
Telephone: +371 28665066