TAIPEI (TVBS News) — Louisa Coffee (路易莎咖啡) stated on Monday (Oct. 7) that despite a reported unrealized loss exceeding NT$40 million, the overall assessment shows no significant damage due to potential profits from a recent plunge in coffee futures. The company's announcement came after media reports addressing concerns regarding its financial standing amid recent fluctuations in coffee futures
Louisa Coffee clarified that they engage in futures hedging alongside spot purchases, with an investment of NT$10 million. The coffee futures market recently surged to its second-highest historical point, prompting the company to follow regulations that require announcing and closing positions if losses exceed 20%.
Despite hedging at relatively high points, Louisa Coffee now sees potential gains from the sharp decline in futures prices. It remains optimistic, citing the recent market dynamics as a stabilizing factor for their financial outlook.
From late August to early October, Louisa Coffee disclosed several instances of derivative transactions reaching the contractual loss limit. Official statements reveal that, as of the end of September, the company recognized unrealized losses amounting to NT$7.848 million and realized losses totaling NT$4.535 million.
