In the past year, the Company continued its strategic development by implementing the previously initiated changes in Hestio's sales strategy. As a result of these measures, the Company successfully maintained stable unaudited revenue of EUR 12.9 million.
At the same time, the Company's sales costs have significantly increased due to substantial investments in the development of the facility cleaning business line and improvements in the quality of other services. A major impact on Hestio’s consolidated financial performance was also caused by the sharp rise in coffee bean prices, which surged by approximately 80% in the global market compared to December 2023. Although the price increase has been passed on to end consumers, part of the cost increase has nevertheless affected Auron Coffee Roastery’s profitability. Additionally, Auron Coffee Roastery entered the HORECA market, requiring further financial investments. As a result, Hestio’s consolidated EBITDA for 2024 declined by 8% to EUR 0.8 million.
The Company’s strategic focus moving forward is increasing e-commerce sales volumes and adapting operational processes to the specific requirements of the e-commerce business. These changes are aimed at improving profitability metrics and strengthening long-term competitiveness.
About Hestio
Hestio AS is one of the leading workplace solution providers in Latvia, helping companies create a comfortable, modern and sustainable working environment since 2007. The Company offers full-service solutions — from office supplies and coffee machine leasing to cleaning services and corporate gifts — ensuring that our clients can focus on their core business operations while Hestio takes care of the details that enhance the workplace experience. Hestio is based on values – team, experience, care, inspiration, and its mission is to improve employee well-being and ensure excellent work rhythm.
On December 19, 2023, Hestio bonds were listed on the Nasdaq Riga Baltic First North market, starting a new phase of development with a focus on transparency and long-term value growth.