Latvian Specialty Coffee Leader Kalve Coffee Targets International Expansion

Latvian specialty coffee group Kalve Coffee is setting its sights on Western Europe, marking a significant shift in the company’s growth strategy. Following a period of record-breaking financial performance, the Riga-based B Corp is preparing to scale its operations beyond the Baltic region.

A Year of Record Growth

The company, which was founded in 2017, achieved substantial financial milestones during the 2024 fiscal year. According to filings with the Nasdaq Baltic First North exchange, Kalve Coffee reported a 37% year-on-year revenue growth for the 12 months ending December 31, 2024, reaching a record €3.4 million ($3.5 million).

This growth was bolstered by strong performance across multiple revenue streams. The brand’s five coffee shops saw a 46% increase in revenue compared to the previous year, while its B2B wholesale business grew by 24%. Profitability also saw a dramatic rise, with net profit for the year reaching €186,000—an increase of 248% over the prior 12-month period. EBIT rose 161% to €204,000, and EBITDA climbed 96% to €322,000.

Strategic Moves and Market Expansion

To support its ambitious scaling plans, Kalve Coffee raised €1.1 million ($1.2 million) through an initial public offering (IPO) in December 2024. The capital is earmarked for several key initiatives, including:

• International Retail Growth: The company is planning to open its first stores in neighboring Estonia and Lithuania over the next 12 months.
• Increased Production: Funding will be used to boost capacity at its 7,500-square-foot roastery in Jaunmārupe, which opened in 2021 and currently serves as the largest specialty coffee roastery in the Baltics with a capacity of 60,000kg per month.
• Strategic Scaling: Management is utilizing data-driven insights to facilitate expansion into Western European markets.

Commitment to Ethical Standards

Beyond its financial achievements, Kalve Coffee maintains a strong focus on sustainability and supply chain transparency. In June 2023, the firm became the first Latvian company to attain B Corp certification, achieving a score of 91.8. The company’s commitment to ethical trade is reflected in its sourcing practices, having imported approximately 115 tons of fully traceable specialty green coffee from 10 different countries throughout 2024.

Future Outlook and Risk Management

While the company is targeting a full-year EBITDA of €1.2 million ($1.25 million), management remains cautious regarding the broader economic environment. The leadership team has noted that profitability growth could be susceptible to geopolitical disruptions within the Baltic region and volatility in key supplier markets. Despite these potential headwinds, the company’s focus on the specialty coffee sector and its established infrastructure position it as a notable player in the regional coffee industry.

Key Takeaways

• Financial Success: Kalve Coffee reached record revenues of €3.4 million in 2024.
• Retail Growth: The company is expanding its café network into Estonia, and Lithuania.
• Sustainability Focus: As a B Corp, the company emphasizes supply chain transparency and ethical sourcing.
• Market Caution: Management is monitoring geopolitical risks that may impact future growth targets.