Registered number: 03996686
REPORT AND FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2025
CARAVELA LIMITED
Company Information
CARAVELA LIMITED
Contents
CARAVELA LIMITED
Group strategic report
For the Year Ended 31 December 2025
The Directors present their Strategic Report for Caravela Limited (the 'Company') and its subsidiaries (together, the 'Group') for the year from 1 January 2025 to 31 December 2025 (the 'year').
Caravela Limited is a high quality coffee company focusing exclusively on responsibly sourcing and selling high quality Latin American coffees. The Company aims to build mutually beneficial relationships between outstanding coffee producers, coffee roasters and coffee consumers, contributing to the development of a long-term sustainable coffee industry, from farm to cup.
The Company was founded in London in May 2000. In 2002, it opened its first coffee export operation in Colombia to source high quality coffee directly from small coffee producers whilst guaranteeing traceability and transparency to roasters around the world. Since then, the Company has grown into a multi-country operation with sourcing, processing, and export operations in seven Latin American countries and import operations in Australia, Europe, North America and the UK, thereby creating value at each step of the coffee supply chain.
Throughout the 26 years in business, Caravela has pioneered many concepts that are now commonplace in the specialty coffee industry such as grading coffee by cup quality (and not bean size), microlots, the use of GrainPro© liners for storing green and parchment coffee, vacuum packing coffee and developing better techniques for drying coffee to extend quality and shelf life, among others.
Caravela’s vision is to be the preeminent supplier of outstanding Latin American coffees to the most discerning coffee roasters throughout the globe, predicated on our unbreakable commitment to quality, professionalism, transparency, integrity, efficiency, innovation, and excellent customer service.
In April 2019 we welcomed Oikocredit Ecumenical Development Cooperative Society UA (Oikocredit) as a shareholder after purchasing Annona Sustainable Investments BV stake in the Company. Oikocredit is an experienced social investor that aims to maximise social impact while safeguarding the environment and generating fair financial returns.
Our business model is built upon five basic principles:
∙Direct Relationships
∙Education
∙Sustainability
∙Traceability
∙Transparency
One of the main differences between Caravela and most green coffee companies is that 100% of the coffee we source is purchased directly from individual coffee producers, most of them small and medium in size, and the totality of the coffee we sell is sold directly to coffee roasters worldwide. Our vertically integrated supply chain means that we do not work with intermediaries, neither on the buy or the sell-side, which allows us to deliver unsurpassed quality and consistency year-round and in the long-term, while being able to provide full traceability and transparency from the coffee farm to the consumer. This is what ultimately differentiates us from the rest and is the main reason why Caravela is the preferred supplier of high-quality Latin American coffee to some of the world’s most demanding and leading specialty coffee roasters.
Page 1
CARAVELA LIMITED
Group strategic report (continued)
For the Year Ended 31 December 2025
Another one of our differentiating factors is our focus on education to coffee producers, which is based on the firm belief that without education to producers the long-term growth of the specialty coffee industry will be limited, and coffee producer’s sustainability will be jeopardised. That is why in each of the Latin American countries where we have company-owned operations we run a grower education program called “PECA” (for the acronym of the program in Spanish: Programa de Educación a Caficultores). PECA focuses on working hand-in-hand with coffee producers with the goal of achieving higher productivity, better cup quality and higher incomes through the education of best practices. To finance the PECA program, the Company allocates 10 cents of every lb sold, which represents close to 15% of the overall company overhead.
Our Coffee Producer Education Program (PECA) enables us to work hand in hand with our coffee producer partners to understand the challenges they face in producing better coffees. In 2025, our team of 27 technicians and agronomists completed over 3,341 farm visits, providing technical advice and training 1,403 producers in improved agricultural and processing practices. To achieve this, our PECA team covered nearly 285,795 km, with associated emissions offset, as reflected in our carbon neutrality status.
We trained 1,403 producers during farm-to-farm visits, and more than 1,268 producers attended our 112 Farmer Field Schools (FFS) and PECA Knowledge Hubs (AULAS). Overall, Caravela positively impacts more than 25,000 people, directly and indirectly, in coffee farming communities across Latin America.
Overall, Caravela positively impacts more than 25,000 people, directly and indirectly, in coffee farming communities across Latin America.
In 2025, we worked with 2,343 small and medium-sized producers across seven Latin American countries and analyzed more than 14,890 individual lots. During the year, the average farm size of our producer partners was 3.79 ha.
Our field team was composed of 47 Quality Analysts and 28 PECA educators. In total, 36% of our team is dedicated daily to supporting coffee producers in producing better coffee.
We invested around US$1.5 million on infrastructure, machines and equipment in our subsidiaries, including launching our first two roasted coffee brands in Colombia, Casa Landino and 40kg. We invested US$112k in development and software in 2025.
Through Casa Landino and 40kg we aim to build direct relationships with coffee drinkers. Understanding their willingness to pay, purchase behaviour and tastes will help us strengthen our collaboration with roasters in different geographies, as well as serve as input for the development of new products.
In 2025 we maintained our B-Corp certification and for the eleventh straight year in a row achieving 141.5 points out of a possible 200, which positions Caravela as an industry leader.
For further information about our impact, please visit https://caravela.coffee /our-impact
Page 2
CARAVELA LIMITED
Group strategic report (continued)
For the Year Ended 31 December 2025
At origin, Caravela has company-owned infrastructure and export companies in Colombia, Ecuador, El Salvador, Guatemala, Mexico, Nicaragua and Peru. In each of these countries, we have multiple purchasing labs, dry mills and a full quality control, logistics and administration teams. The Company also sources coffee in Honduras but does not have its own export operations in this country.
In total, we operate in seven Latin American coffee origins, with close to 200 employees, 39 purchasing points and cupping labs, more than 17,000 square meters of coffee parchment drying facilities, 5 dry processing mills (trilladoras) with state-of-the-art optical sorting equipment, a cross border farmer education program led by expert agronomists and a quality analysis team comprised of more than 31 highly trained coffee cuppers that work day in and day out with our farmers providing constant feedback and support.
On the import side, we have a team of more than twenty coffee professionals focused on sales, quality assurance, logistics and administration. Our offices are located in London (United Kingdom), Houston (USA), Sydney (Australia), Taipei (Taiwan), and Dublin (Ireland). At the end of 2025, 35% of our employees are female, distributed as follows:
Page 3
CARAVELA LIMITED
Group strategic report (continued)
For the Year Ended 31 December 2025
In 2025, we invoiced and delivered coffee to 360 coffee roasters in 36 countries in five continents. The coffee sold to our worldwide customers was sourced from 3,115 individual coffee producers in the seven Latin American countries where we operate, 89% of them smallholder producers that own less than five hectares of land.
Distribution of Sales by Destination (based on 60-kg bags)
During 2025 Caravela continued reshaping its management structure with the goals of improving collaboration, empowering individuals, and better responding to the changing needs of the coffee industry. Under the name “One Caravela”, this initiative emphasizes self-management across the organization.
As part of our business, we are faced with operational, quality and financial risks that the Company recognises and mitigates.
Quality risk is mitigated by our very high standards at the purchase point, as well as the work undertaken by PECA on the ground. As producers understand the importance of quality as a pre-requisite for higher prices, they themselves become quality obsessed and therefore work hard to produce the best coffee they can. Our risk mitigation tool then is the relationship we develop with the producer as well as constant supervision at the purchase lab and the different quality controls we have implemented.
On the operational side, we face risk regarding the movement of our coffee from purchasing to our processing facilities and then onwards to customers. We measure our performance on this matter via our OTIF (On-Time In-Full) KPI.
From a financial perspective, we again face many risks regarding our exposure to futures markets, local currency movements against the US Dollar in the countries where we handle business, as well as the credit worthiness of our suppliers and customers. We mitigate these risks by utilising financial hedging strategies such as the use of future contracts for hedging our physical coffee position, options to cover for unexpected price movements, forward currency contracts to hedge our currency exposure and trade credit insurance to protect us from the risk of non-payment by customers.
Page 4
CARAVELA LIMITED
Group strategic report (continued)
For the Year Ended 31 December 2025
In 2025 we continued to see a decrease in the local differentials paid for coffee in the countries where we operate. In addition, we saw an increase in the C market prices during the year. As a result of these price movements our cost of coffee was higher than in 2024.
Caravela therefore is continuing its farmer outreach efforts through our PECA program. We expect that through market access, consistent high prices and added value to farmers we can minimise the risk of lower quality and non-delivery.
We use futures contracts to hedge almost 100% of our sales and purchases of coffee. This means that we are exposed to hedging gains or losses. There are two types of hedging gains or losses:
∙Realized hedging gains or losses correspond to fully fixed (buy-sell) future contract positions. In this case we have an actual cash movement that is offset by the sale of the physical inventory. As such, our current hedging losses will be compensated by the sale of the physical inventory in the future and therefore will be recovered when that inventory is sold to final customers. The effect of those hedging losses is in effect only inter-temporary, as any losses are recouped with the sale of the physical coffee. At the same time any gains are also given back when actual coffee is sold.
∙Unrealized hedging on the other hand corresponds to losses or gains on contracts partially fixed (either sale or buy). Since our position is typically long (we buy a futures market when the customer price fixes) as the market moves lower, we have unrealized hedging losses. The effect of these losses is merely on asset valuation and there is no cash effect for the Company.
In 2023 we implemented hedge accounting for our coffee futures position. We can calculate the realized and unrealized gains or losses for each lot of coffee that we have under contract or that we have in inventory. We therefore only recognize the gain or loss in the Profit and Loss account when we recognize the sale of the coffee. By implementing hedge accounting we can isolate the effect of the volatility of the C market in our Profit and Loss account and have a better representation of the Company’s operating position.
During the year, we also saw a reduction in the depreciation of Latin American currencies and an increase in FX volatility.
Climate Change together with the geopolitical scenery is one of coffee’s greatest risks to our business, therefore PECA is fundamental in working together with coffee producers to provide them with the tools and the training necessary to withstand and hopefully overcome this major threat.
The EU Anti-Deforestation Regulation (EUDR) regulation exists already in law, but mandatory enforcement has been delayed until 30 December 2026, which will have an impact on coffee (among other products) imports into the EU. Starting on this date all coffee imported into the EU must be sourced from deforestation free farms. This regulation means that importers need to have complete traceability to each of the farms where coffee is produced. In addition, the geo-location of each farm needs to be validated against deforestation data to demonstrate that the farm is deforestation free.
Caravela has full traceability of 100% of the coffee we source. We started the process of confirming the geo-location of each farm that supplies to us with the aim of being EUDR before the regulation is in force. Once this process is completed, we will be able to offer our customer coffee that complies with EUDR.
Caravela also faces risks which are external and that may have an impact in our business, such as macroeconomic changes, political changes in the countries where we operate, changes in regulations and commerce laws, etc. While there are no ready-made tools for mitigating these risks, Management constantly works to understand our position on different fronts and to set up scenarios for risk mitigation.
Page 5
CARAVELA LIMITED
Group strategic report (continued)
For the Year Ended 31 December 2025
The Directors report that 2025 was a challenging trading year for the Group, marked by significant external pressures across key markets and the global coffee supply chain.
Sales volumes were materially impacted by continued volatility in the C-Market, the implementation of tariffs in the USA, and persistent logistical disruptions at Latin American ports. These factors, combined with increased cost of goods sold at origin, contributed to a loss for the year.
Sales volumes (measured in 60kg bags) declined by 24% compared to the prior year, reflecting both weaker demand conditions and changes in customer purchasing behaviour. Gross profit decreased by 28%, while EBITDA declined by 66%, demonstrating the operational leverage inherent in the business.
The results for the Group are set out on the Consolidated Statement of Comprehensive Income and have been summarised below.
Trading conditions in 2025 remained highly complex. Coffee prices in the futures market (C-Market) remained at historically elevated levels, with significant volatility across futures prices, local differentials and global currencies. This created a highly uncertain pricing environment for the entire coffee industry, and particularly for our roaster customers.
Operationally, the Group continued to experience delays across Latin American ports and extended processing times, which negatively impacted fulfilment reliability and increased working capital requirements. At the same time, inflationary pressures at the consumer level have introduced additional uncertainty around short- and medium-term demand, while also impacting our costs and expenditure.
In this environment, roasters have remained focused on reducing their cost of goods sold. This has resulted in a shift toward lower-priced coffees and shorter-term purchasing strategies, often at the expense of quality. This dynamic has negatively impacted the Group’s sales volumes and mix, particularly given the Group’s positioning in higher-quality and sustainably sourced coffees.
Despite these headwinds, the Group continues to differentiate itself through its focus on quality, sustainability and direct relationships with coffee producers. This positioning supports long-term value creation, even though it may create short-term pressure in periods where customers prioritise price over quality.
The Group monitors performance through key operating metrics, including sales volumes (in 60kg bags) and profitability indicators such as EBITDA and operating profit per pound of coffee sold. These measures provide a consistent basis for evaluating performance across periods.
Page 6
CARAVELA LIMITED
Group strategic report (continued)
For the Year Ended 31 December 2025
The Directors consider that a significant portion of the reported loss for 2025 is attributable to foreign exchange volatility.
The Group purchases coffee in local currencies across Latin America, while sales are primarily denominated in USD, as well as EUR, GBP and AUD. Accounting policies require inventory and transactions to be recorded at average exchange rates, while payments to producers occur at prevailing (historical) rates. This creates timing-related FX effects between the point of purchase and the point of sale.
To better reflect the underlying operating performance of the business, the Group also reviews its results on a constant exchange rate basis, as presented below
Constant currency reporting isolates the impact of exchange rate movements during the period, listed above as Intra Company FX adjustment. Including this item in a separate line provides a clearer view of operational performance.
During 2025, most producing-country currencies strengthened against the US Dollar. This resulted in higher reported costs when translated into the Group’s reporting currency, negatively impacting reported profitability under IFRS standards.
Excluding these FX effects, the Group’s margins show greater resilience, indicating that the underlying business maintained relative stability despite highly adverse market conditions.
Page 7
CARAVELA LIMITED
Group strategic report (continued)
For the Year Ended 31 December 2025
Net assets decreased by 20% from 2024 to 2025. Within the balance sheet, liabilities increased by 27% reflecting the pressure on the use of our credit facilities.
Total assets have increased 12%, mainly due to increased value of the inventory, in addition to investments in tangible assets such as installations and equipment.
The present report comprises the following companies that are part of the Caravela Group:
∙Caravela Coffee Australia Pacific Pty Ltd (Australia)
∙Caravela Coffee LLC (United States)
∙Caravela Colombia S.A.S (Colombia)
∙Caravela Guatemala S.A. (Guatemala)
∙Caravela Limited (UK) – parent Company
∙Caravela Mesoamerica S.A. de C.V. (El Salvador)
∙Caravela Nicaragua S.A. (Nicaragua)
∙Caravela Peru S.A.C (Peru)
∙Caravela-Ecuador S.A. (Ecuador) – previously called Ecuavirmax
∙Agroalimentos Caravela de Mexico S.A. de C.V. (Mexico)
∙Caravela Asia Limited (Taiwan)
∙Caravela Coffee Europe Ltd (Ireland)
∙Caravela Europe BV (The Netherlands)
∙I Love Caturra Ltd (United Kingdom)
Due to the size of the Company and its subsidiaries, the Company is required to prepare consolidated financial statements. Refer to note 2.2 for further information.
The following statement describes how the directors have had regard to the matters set out in section 172 (1) (a) to (f) when performing their duty under section 172 of the Companies Act 2006.
The board aims to have a material positive impact on all its stakeholders through the Company’s business and operations. All decisions take into account:
∙The likely consequences of any decision in the long term.
∙The interest of the Company’s employees.
∙The need to foster the Company’s business relationships with suppliers, customers and others.
∙The Company’s operation in the community and the environment.
∙The desirability of the Company maintaining a reputation for high standards of business conduct.
∙The need to act fairly as between members of the Company.
The above matters are defined as “Stakeholder Interest”.
Our business is based on the idea of long-term relationships between two key stakeholders: our coffee suppliers and our customers. We believe that only by adding value to both these groups we will be successful.
Page 8
CARAVELA LIMITED
Group strategic report (continued)
For the Year Ended 31 December 2025
100% of our coffee is bought directly from small and medium sized coffee farmers, who sell directly to Caravela in one of our purchase stations. The price we pay is transparent and directly tied to the quality of the beans delivered. We have programs in place (see PECA) where we partner with our coffee grower partners to help them improve their quality and productivity.
We firmly believe that we can help our customers success by not only delivering great, consistent coffees but also by providing, traceability, transparency and education across the board. We aim to develop a long-term relationship with each of our more than 500 customers.
Our team is the reason behind our success. Team members are actively encouraged to participate in local decision making and to contribute in the Company’s larger initiatives. We have programmes in place to identify and develop talent in our team, and all team members are provided with hard skills and soft skills training.
During 2025 we continued the move towards becoming a self-managed organization, based on employee accountability. Our goal is to empower all the Caravela team members to decide what is in the best interest of the Company, clients and suppliers.
Caravela was the first Green Coffee Trader to achieve Carbon Neutral Silver Standard certification for our Global Operations. This was verified by One Carbon World. We have achieved our goal to become Carbon Neutral by 2025. We continue to work on diverse initiatives towards our goal of becoming Net Zero by 2030, including our coffee supply chain.
As a for profit company, Caravela always considers the effects of our decisions in our ability to re-pay our debt and protect the investment of our shareholders. We believe that true sustainability is only achieved where all parts of the chain can benefit, from farmers, to other suppliers, customers, coffee drinkers and of course our Company by having resources to continue to invest and grow.
This report was approved by the board on 30 June 2026 and signed on its behalf.
A Cadena
Director
Page 9
CARAVELA LIMITED
Directors' report
For the Year Ended 31 December 2025
The directors present their report and the financial statements for the year ended 31 December 2025.
The principal activity of the Group, including the Company and its subsidiaries, is the trade of high quality green coffee from Latin America.
The loss for the year, after taxation, amounted to $1,964,628 (2024: profit for the year $300,855).
Subsequent to the year end, an ordinary dividend of $Nil (2024: $380,000) has been proposed for approval by the shareholders for the year ended 31 December 2025.
The directors who served during the year were:
A Cadena
J Hector (resigned 15 June 2026)
G Ghiretti
J Green
M Wright (resigned 31 December 2025)
The directors are responsible for preparing the Group Strategic Report, the Directors' Report and the consolidated financial statements in accordance with applicable law and regulations.
Company law requires the directors to prepare group and company financial statements for each financial year. Under that law, the directors have elected to prepare the financial statements in accordance with United Kingdom Generally Accepted Accounting Practice (United Kingdom Accounting Standards and applicable law). Under company law, the directors must not approve the financial statements unless they are satisfied that they give a true and fair view of the state of affairs of the Group and the Company and of the profit or loss of the Group for that period.
In preparing these financial statements, the directors are required to:
∙select suitable accounting policies and then apply them consistently;
∙make judgements and accounting estimates that are reasonable and prudent;
∙state whether applicable UK Accounting Standards have been followed, subject to any material departures disclosed and explained in the financial statements; and
∙prepare the financial statements on the going concern basis unless it is inappropriate to presume that the Group will continue in business.
The directors are responsible for keeping adequate accounting records that are sufficient to show and explain the Group's and Company's transactions and disclose with reasonable accuracy at any time the financial position of the Group and Company and enable them to ensure that the financial statements comply with the Companies Act 2006. They are also responsible for safeguarding the assets of the Group and Company and hence forth taking reasonable steps for the prevention and detection of fraud and other irregularities.
Page 10
CARAVELA LIMITED
Directors' report (continued)
For the Year Ended 31 December 2025
The Group and Company intends to continue to invest in its existing Latin American subsidiaries to gain more control of the product, obtain efficiencies and be as close as possible to farmers. We continue to invest in our technological tools that help us be more efficient and productive.
The directors expect with reasonable certainty that their current borrowing facilities will be available for a minimum period of at least one year from the date of approval of these financial statements and do not have any concerns over meeting its financial covenants attached to its borrowing facilities. Based on these forecasts and action plans, the directors consider it is appropriate for the Group and Company financial statements to be prepared on the going concern basis.
Objectives and policies
Financial instruments are classified and accounted for according to the substance of the contractual arrangement, as financial assets, financial liabilities or equity instruments. An equity instrument is any contract that evidences a residual interest in the assets of the Company after deducting all of its liabilities. Where shares are issued, any component that creates a financial liability of the Company is presented as a liability in the balance sheet. The corresponding dividends relating to the liability component are charged as an interest expense in the profit and loss account.
Credit risk, liquidity risk and cash flow risk
The business' principal financial instruments comprise bank balances, trade debtors, creditors, bank loans. The main purpose of these instruments is to finance the business' operations.
In respect of bank balances, the liquidity risk is managed by maintaining a balance between the continuity of funding and flexibility through the timing of collecting debts and payments of liabilities. All of the business' cash balances are held in such a way that achieves a competitive rate of interest. The business makes use of hedging and forward contracts to eliminate risk.
Trade debtors are managed in respect of credit and cash flow risk by policies concerning the credit offered to customers and the regular monitoring of amounts outstanding for both time and credit limits. The amounts presented in the balance sheet are net of allowances for any doubtful debts.
Creditors' liquidity is managed by ensuring sufficient funds are available to meet amounts due.
The bank loans are a short-term liability to provide working capital. Profits are being retained in the form of bank balances to ensure sufficient funds are available when the loans mature.
Price risk
Our business operates in an environment where fluctuations in commodity prices, exchange rates, and other market variables can significantly impact financial performance. To mitigate the adverse effects of price volatility, we employ strategic hedging through future contracts and FX non-delivery forwards. These contracts allow us to mitigate the risk of price and currency movements.
Our risk management strategies have adapted to ensure continued resilience and stability in the face of market uncertainties.
Page 11
CARAVELA LIMITED
Directors' report (continued)
For the Year Ended 31 December 2025
Future Contracts Hedge
Our risk management approach involves the use of future contracts as a primary tool for hedging against price risks and non-delivery forward contracts for hedging against currency movements.
Risk Management objectives
The objectives of our risk management activities related to derivative contracts are as follows:
Price Stability: To minimize the impact of price volatility on our financial performance by locking in prices through hedging.
Cost Control: To manage input costs and maintain competitive pricing for our products by strategically hedging against price fluctuations.
Margin Protection: To safeguard revenue streams and profit margins by mitigating the downside risks associated with adverse price movements.
Strategic Planning: To support long-term strategic planning and decision-making by providing greater certainty and predictability in our cost structure and revenue projections.
The Group maintains a Transparency Hotline where employees and other stakeholders can express views on matters that affect them anonymously.
The Group is committed to a policy and practice under which they recognize their obligations not to discriminate unlawfully against people with disabilities at any stage of employment, and undertake:
1.to seek to employ people with disabilities in jobs suited to their aptitudes, abilities, and qualifications, making any reasonable adjustments necessary to do so;
2.to seek to ensure that employees with disabilities are considered for promotion according to their aptitudes, abilities, and qualifications, making any reasonable adjustments necessary to do so;
3.to ensure that assessments are carried out of the scope of reasonable adjustments which may be made to the workplace and its environment, so as to make it possible to retain an employee with a disability or to recruit a person with a disability;
4.to make any reasonable alterations to company premises required to ensure that they are accessible and safe for people with disabilities; and
5.to make reasonable changes to the workplace and to employment arrangements so that a person with disability is not at any substantial disadvantage compared to a non-disabled person.
At the time of approving the Directors' Report, there are qualifying third party indemnity insurance provisions in force for the benefit of the directors.
Page 12
CARAVELA LIMITED
Directors' report (continued)
For the Year Ended 31 December 2025
1. Our 2030 Net Zero Commitment
At Caravela Coffee, we understand climate action as a shared responsibility across every stage of the coffee supply chain. Since beginning our carbon footprint assessment journey in 2016, we have progressively expanded the scope, quality, and depth of our emissions measurement and reduction strategy across our global operations.
Today, with a robust emissions baseline, an internal monitoring platform, and third-party verification through One Carbon World, Caravela Coffee reaffirms its commitment to achieving Net Zero emissions across scopes 1, 2 and 3 by 2030.
Our commitment goes beyond compensation. We are focused on reducing emissions at source, increasing operational efficiency, strengthening environmental awareness across our teams and partners, and developing long-term insetting strategies within our own coffee supply chain. We believe the transition to Net Zero requires measurable action, operational accountability, and collaboration across producing and consuming countries alike.
Caravela Coffee’s preliminary internal assessment estimates total emissions of 2,239 tCO2e associated with the export of 71,960 bags of green coffee in 2024, corresponding to an environmental efficiency ratio of 0.52 kg CO2e per kg of green coffee exported. In 2025, total emissions increased to 2,303 tCO2e while export volumes decreased to 68,837 bags of green coffee, resulting in an environmental efficiency ratio of 0.56 kg CO2e per kg of green coffee exported. This reflects a modest increase in emissions intensity compared to the previous year, highlighting the importance of accelerating emissions reduction efforts across the supply chain. As part of its carbon reduction strategy, Caravela will continue to focus on improving operational efficiency, optimizing logistics, increasing the use of renewable energy, and working with coffee producers and supply chain partners to identify and implement emissions reduction opportunities.
2. Reduction Strategy and Mitigation Measures for 2030
Caravela Coffee’s reduction strategy focuses on increasing environmental efficiency across all operations while reducing absolute emissions throughout the supply chain.
Scope 1 - Direct Emissions:
∙Fuel Consumption:
To address direct emissions from fossil fuel consumption, Caravela Coffee continues to reduce dependency on company-owned vehicles and optimize transportation efficiency across operations. Additionally, as part of our evolving purchasing strategy based on cup profiles, we are promoting greater efficiency in the coffee purchasing and cupping process across our 7 origin operations and 5 import offices. Through employee awareness, operational planning, and process optimization, we aim to reduce unnecessary fossil fuel use associated with sample movement, cupping logistics, and purchasing operations. These measures seek to improve operational coordination while reducing fuel consumption intensity across our global footprint.
Scope 2 - Indirect Emissions:
∙Energy Consumption:
Building on the installation of solar panels at our main dry mill facility in Colombia, which currently supply approximately 20% of the energy required for milling operations, we are also working to improve energy efficiency throughout the milling process itself through upgraded machinery, operational optimization, and employee awareness.
Page 13
CARAVELA LIMITED
Directors' report (continued)
For the Year Ended 31 December 2025
Toward 2030, Caravela Coffee is actively exploring local partnerships in producing countries that enable access to renewable energy sources capable of powering milling operations outside Colombia. Our objective is to progressively reduce dependency on conventional electricity grids and increase the share of renewable energy used throughout our processing infrastructure.
Scope 3 - Value Chain Emissions:
∙Water consumption:
Water use within Caravela Coffee operations is mainly associated with quality assurance and cupping activities. Through the implementation of a purchasing strategy increasingly aligned by cup profile and quality consistency, Caravela expects to reduce the overall number of cupping repetitions and samples required throughout the sourcing process. This operational optimization will contribute to lower fixed emissions associated with water consumption while maintaining the integrity and rigor of our quality protocols.
∙Materials consumption:
Caravela Coffee continues to seek strategic partnerships with suppliers capable of reducing the embedded emissions associated with export materials and logistics. This includes the development and sourcing of coffee export bags and liners with lower embedded carbon emissions, reduced fossil-fuel-based inputs, and improved transportation efficiency. Additionally, Caravela is exploring the implementation of reusable pallets manufactured from recycled materials that allow longer operational lifespan, reuse cycles, and reduced consumption of primary resources. Through procurement engagement and supplier collaboration, we aim to progressively reduce emissions associated with materials consumption across the supply chain.
∙Waste Generation:
Caravela Coffee remains committed to ensuring that 100% of organic waste generated through dry milling operations is responsibly managed and diverted from landfill by 2030. Current partnerships already allow organic by-products from milling operations to be redirected toward energy generation, composting processes, and upcycling initiatives for alternative materials production. In parallel, we continue to strengthen employee awareness programs across all operation sites to improve waste separation, recycling practices, and responsible disposal of reusable materials. Our objective is to continuously reduce emissions associated with waste generation while fostering a culture of environmental responsibility throughout the company.
∙Coffee Freight:
Freight and logistics remain the largest source of emissions within Caravela Coffee’s footprint. In response, the company has developed internal export planning and logistics platforms designed to optimize shipment consolidation, route planning, container utilization, and transport efficiency. These systems allow Caravela Coffee to reduce space inefficiencies during export operations, improve loading efficiency, and minimize unnecessary transport emissions across parchment collection, inland freight, milling logistics, and green coffee exports.
∙Business Travel:
Recognizing air travel as one of the main contributors to scope 3 emissions, Caravela Coffee continues to strengthen internal business travel policies focused on awareness, accountability, and emissions reduction. Through carbon budgeting by operational role, prioritization of virtual meetings where appropriate, and more efficient travel planning, the company seeks to reduce emissions intensity associated with business travel while maintaining meaningful engagement across producing and consuming countries.
∙Employee Commuting:
Caravela Coffee continues to promote hybrid and flexible work models across office operations to reduce emissions associated with employee commuting. Additionally, the company is developing awareness initiatives that encourage the adoption of lower-emission transportation alternatives such as walking, cycling, public transportation, carpooling, and electric mobility options where available. These measures seek not only to reduce operational emissions, but also to foster a broader environmental culture among collaborators across all countries of operation.
Page 14
CARAVELA LIMITED
Directors' report (continued)
For the Year Ended 31 December 2025
3. Compensation Transition Strategy
Caravela Coffee’s compensation strategy is evolving from a traditional offsetting-only approach toward a long-term multichannel compensation model that combines both carbon offsetting and insetting initiatives within our own supply chain.
To date, Caravela Coffee has compensated emissions through certified international carbon credits as part of the One Carbon World Carbon Neutral International Standard framework. Moving forward, the company aims to progressively transition toward a model where an increasing proportion of emissions compensation is achieved directly within coffee-producing landscapes connected to our operations.
This strategy includes the development of partnerships and projects related to:
∙Farm-level reforestation and afforestation initiatives
∙Forest conservation and mitigation of deforestation and forest degradation
∙Biochar technologies applied at farm level to increase long-term carbon sequestration capacity
∙Agroforestry systems and regenerative agricultural practices
Through this approach, Caravela Coffee seeks to create measurable carbon sinks within its own supply chain while simultaneously supporting resilience, biodiversity conservation, and long-term producer livelihoods across Latin America. Our objective by 2030 is to achieve a compensation model capable of addressing 100% of scopes 1, 2 and 3 emissions through a balanced combination of certified offsetting and traceable insetting initiatives connected directly to our coffee producer relationships.
The total Carbon Footprint for 2025 of the activities measured is 2,303 tonnes CO2e.
Page 15
CARAVELA LIMITED
Directors' report (continued)
For the Year Ended 31 December 2025
Caravela Coffee’s greenhouse gas emissions assessment is conducted in alignment with the Greenhouse Gas (GHG) Protocol Corporate Standard and is compatible with ISO 14064 and PAS 2060 international standards.
The methodology applied for the assessment follows internationally recognized carbon accounting principles based on the use of documented and approved GHG emission conversion factors. These conversion factors establish the relationship between operational activity data and the associated greenhouse gas emissions generated by each activity.
Under this methodology, operational activity data collected across Caravela Coffee’s operations is multiplied by the relevant emissions conversion factors to calculate total greenhouse gas emissions expressed as carbon dioxide equivalent (CO2e). The assessment considers the seven greenhouse gases covered under the Kyoto Protocol, including carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O), hydrofluorocarbons (HFCs), perfluorocarbons (PFCs), sulphur hexafluoride (SF6), and nitrogen trifluoride (NF3).
The Global Warming Potentials (GWPs) used for the conversion to CO2e are based on the Intergovernmental Panel on Climate Change (IPCC) Fourth Assessment Report (AR4) over a 100-year period, following international inventory and reporting requirements. All conversion factors applied in the assessment are expressed in kilograms of carbon dioxide equivalent (kg CO2e).
The scope of Caravela Coffee’s assessment covers all activities under the company’s operational control across scopes 1, 2 and 3, spanning operations in producing and destination countries. The assessment boundary extends from coffee purchasing operations at producer communities and buying stations through parchment transportation, dry milling, processing, warehousing, export logistics, and green coffee freight up to destination warehouses in importing countries.
The assessment includes emissions associated with fuel and energy consumption, electricity use, refrigerants, freight and logistics, materials consumption, waste generation, water use, employee commuting, homeworking, hotel stays, and business travel. Additionally, the methodology incorporates well-to-tank emissions associated with fuel extraction and refining, as well as transmission and distribution losses from electricity consumption. To strengthen data consistency, transparency, and monitoring capacity, Caravela Coffee continues to consolidate operational activity data through its internal Greener Coffee platform, enabling centralized emissions tracking and supporting the implementation and monitoring of reduction and mitigation strategies across the supply chain.
Page 16
CARAVELA LIMITED
Directors' report (continued)
For the Year Ended 31 December 2025
Caravela Coffee began assessing its carbon emissions in 2016 as part of a broader commitment to understanding and reducing the environmental impact of coffee supply chains. Over the years, the company progressively expanded the scope and quality of its assessments, moving from localized operational measurements toward a global carbon footprint covering all operations across producing and importing countries. By 2021, Caravela Coffee completed its second full assessment of scopes 1, 2 and 3 under third-party verification through One Carbon World, establishing a baseline environmental efficiency of 0.55 kg CO2e per kg of green coffee exported. In 2022, global logistical disruptions and extraordinary freight conditions significantly increased emissions associated with land transportation and export logistics, resulting in a temporary increase in total emissions intensity. Since then, Caravela Coffee has focused on strengthening operational efficiency, improving logistics planning, reducing fuel dependency, investing in renewable energy, optimizing milling operations, improving waste management partnerships, promoting hybrid work models, and implementing more robust data collection methodologies. In 2025, Caravela Coffee achieved a total assessed footprint of 2,303 tCO2e, representing a 3% increase compared to 2024 emissions.
As part of Caravela Coffee’s continuous improvement process in greenhouse gas accounting and environmental efficiency monitoring, the company has completed a preliminary internal assessment of its expected 2025 greenhouse gas emissions prior to third-party verification by One Carbon World. Based on operational activity data collected through the Greener Coffee platform, Caravela Coffee projects total emissions of approximately 2,303 tCO2e for 2025 associated with the export of 68,837 bags of green coffee. This corresponds to an estimated environmental efficiency ratio of 0.56 kg CO2e per kg of green coffee exported, representing a continued improvement in emissions intensity compared to previous assessment years.
Page 17
CARAVELA LIMITED
Directors' report (continued)
For the Year Ended 31 December 2025
While final figures remain subject to external verification and methodology review, the preliminary results reflect the impact of ongoing operational efficiency measures, logistics optimization strategies, renewable energy initiatives, and emissions reduction actions implemented across Caravela Coffee’s supply chain.
The Group has chosen in accordance with Companies Act 2006, section 414C(11) to set out in the Strategic Report information required by Large and Medium-sized Companies and Groups (Accounts and Reports) Regulations 2008, Schedule 7 to be contained in the Directors' Report. It has done so in respect of the fair review of the business, the principle risks and uncertainties facing the business, and disclosures of strategic importance.
Each of the persons who are directors at the time when this Directors' Report is approved has confirmed that:
∙so far as the director is aware, there is no relevant audit information of which the Company and the Group's auditor is unaware; and
∙the director has taken all the steps that ought to have been taken as a director in order to be aware of any relevant audit information and to establish that the Company and the Group's auditor is aware of that information.
Page 18
CARAVELA LIMITED
Directors' report (continued)
For the Year Ended 31 December 2025
On 11 March 2026, the Group renewed one of its Financing facilities, used for the purchase of parchment coffee in Peru and Mexico.
The auditor, RSM UK Audit LLP, will be proposed for reappointment in accordance with section 485 of The Companies Act 2006.
This report was approved by the board on 30 June 2026 and signed on its behalf.
Page 19
CARAVELA LIMITED
Independent auditor's report to the members of Caravela Limited
We have audited the financial statements of Caravela Limited (the 'Parent Company') and its subsidiaries (the 'Group') for the year ended 31 December 2025, which comprise the Consolidated statement of comprehensive income, the Consolidated statement of financial position, the Company statement of financial position, the Consolidated statement of changes in equity, the Company statement of changes in equity, Consolidated statement of cash flows and notes to the financial statements, including significant accounting policies. The financial reporting framework that has been applied in their preparation is applicable law and United Kingdom Accounting Standards, including Financial Reporting Standard 102 ‘The Financial Reporting Standard applicable in the UK and Republic of Ireland' (United Kingdom Generally Accepted Accounting Practice).
In auditing the financial statements, we have concluded that the directors' use of the going concern basis of accounting in the preparation of the financial statements is appropriate.
Based on the work we have performed, we have not identified any material uncertainties relating to events or conditions that, individually or collectively, may cast significant doubt on the Group's or the Parent Company's ability to continue as a going concern for a period of at least twelve months from when the financial statements are authorised for issue.
Our responsibilities and the responsibilities of the directors with respect to going concern are described in the relevant sections of this report.
Page 20
CARAVELA LIMITED
Independent auditor's report to the members of Caravela Limited (continued)
The other information comprises the information included in the annual report other than the financial statements and our auditor's report thereon. The directors are responsible for the other information contained within the annual report. Our opinion on the financial statements does not cover the other information and, except to the extent otherwise explicitly stated in our report, we do not express any form of assurance conclusion thereon. Our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial statements or our knowledge obtained in the course of the audit, or otherwise appears to be materially misstated. If we identify such material inconsistencies or apparent material misstatements, we are required to determine whether this gives rise to a material misstatement in the financial statements themselves. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact.
We have nothing to report in this regard.
In our opinion, based on the work undertaken in the course of the audit:
∙the information given in the Group strategic report and the Directors' report for the financial year for which the financial statements are prepared is consistent with the financial statements; and
∙the Group strategic report and the Directors' report have been prepared in accordance with applicable legal requirements.
In the light of the knowledge and understanding of the Group and the Parent Company and their environment obtained in the course of the audit, we have not identified material misstatements in the Group strategic report or the Directors' report.
Page 21
CARAVELA LIMITED
Independent auditor's report to the members of Caravela Limited (continued)
Our objectives are to obtain reasonable assurance about whether the financial statements as a whole are free from material misstatement, whether due to fraud or error, and to issue an auditor's report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs (UK) will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of these financial statements.
The extent to which the audit was considered capable of detecting irregularities, including fraud
Irregularities are instances of non-compliance with laws and regulations. The objectives of our audit are to obtain sufficient appropriate audit evidence regarding compliance with laws and regulations that have a direct effect on the determination of material amounts and disclosures in the financial statements, to perform audit procedures to help identify instances of non-compliance with other laws and regulations that may have a material effect on the financial statements, and to respond appropriately to identified or suspected non-compliance with laws and regulations identified during the audit.
In relation to fraud, the objectives of our audit are to identify and assess the risk of material misstatement of the financial statements due to fraud, to obtain sufficient appropriate audit evidence regarding the assessed risks of material misstatement due to fraud through designing and implementing appropriate responses and to respond appropriately to fraud or suspected fraud identified during the audit.
However, it is the primary responsibility of management, with the oversight of those charged with governance, to ensure that the entity's operations are conducted in accordance with the provisions of laws and regulations and for the prevention and detection of fraud.
In identifying and assessing risks of material misstatement in respect of irregularities, including fraud, the group audit engagement team and component auditors:
∙obtained an understanding of the nature of the industry and sector, including the legal and regulatory framework that the group and parent company operate in and how the group and parent company are complying with the legal and regulatory framework;
∙inquired of management, and those charged with governance, about their own identification and assessment of the risks of irregularities, including any known actual, suspected or alleged instances of fraud;
∙discussed matters about non-compliance with laws and regulations and how fraud might occur including assessment of how and where the financial statements may be susceptible to fraud.
Page 22
CARAVELA LIMITED
Independent auditor's report to the members of Caravela Limited (continued)
As a result of these procedures we consider the most significant laws and regulations that have a direct impact on the financial statements are FRS 102, the Companies Act 2006 and tax compliance regulations. We performed audit procedures to detect non-compliances which may have a material impact on the financial statements which included reviewing financial statement disclosures and inspecting correspondence with local tax authorities.
The most significant laws and regulations that have an indirect impact on the financial statements are those in relation to customs and duties. We performed audit procedures to inquire of management whether the group is in compliance with these law and regulations and inspected correspondence with licensing or regulatory authorities.
The group audit engagement team identified the risk of management override of controls and the existence and cut-off of revenue as the areas where the financial statements were most susceptible to material misstatement due to fraud. Audit procedures performed included but were not limited to testing manual journal entries and other adjustments and evaluating the business rationale in relation to significant, unusual transactions and transactions entered into outside the normal course of business, agreeing samples of revenue entries in to the general ledger to supporting documentation, and testing a sample of revenue entries with close proximity to the period end to ensure they were recognised in the correct accounting period.
All relevant laws and regulations identified at a Group level and areas susceptible to fraud that could have a material effect on the consolidated financial statements were communicated to component auditors. Any instances of non-compliance with laws and regulations identified and communicated by a component auditor were considered in our group audit approach.
A further description of our responsibilities for the audit of the financial statements is located on the Financial Reporting Council's website at: www.frc.org.uk/auditorsresponsibilities. This description forms part of our auditor's report.
This report is made solely to the Company's members, as a body, in accordance with Chapter 3 of Part 16 of the Companies Act 2006. Our audit work has been undertaken so that we might state to the Company's members those matters we are required to state to them in an auditor's report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume responsibility to anyone other than the Company and the Company's members, as a body, for our audit work, for this report, or for the opinions we have formed.
for and on behalf of
Chartered Accountants
25 Farringdon Street
EC4A 4AB
Date: 02 July 2026
Page 23
CARAVELA LIMITED
Consolidated statement of comprehensive income
For the Year Ended 31 December 2025
Page 24
CARAVELA LIMITED
Registered number: 03996686
Consolidated statement of financial position
As at 31 December 2025
Page 25
CARAVELA LIMITED
Registered number: 03996686
Consolidated statement of financial position (continued)
As at 31 December 2025
The financial statements were approved and authorised for issue by the board and were signed on its behalf on 30 June 2026.
The notes on pages 36 to 65 form part of these financial statements.
Page 26
CARAVELA LIMITED
Registered number: 03996686
Company statement of financial position
As at 31 December 2025
Page 27
CARAVELA LIMITED
Registered number: 03996686
Company statement of financial position (continued)
As at 31 December 2025
As permitted by s408 Companies Act 2006, the Company has not presented its own profit and loss account and related notes as it prepared Group accounts. The Company's loss for the year was $1,900,808 (2024: $427,803).
The financial statements were approved and authorised for issue by the board and were signed on its behalf on30 June 2026 .
The financial statements were approved and authorised for issue by the board and were signed on its behalf on
The notes on pages 36 to 65 form part of these financial statements.
Page 28