JDE Peet’s reports half-year results 2023

Focus and disciplined execution of strategy, leading to in-market outperformance

PRESS RELEASE

Amsterdam, 2 August 2023

Key items¹

• Organic sales up +3.5% (+2.4% reported), driven by +6.8% price and volume/mix of -3.3%
• Organic gross profit up +0.9% and high single-digit growth of advertising spend
• Organic adjusted EBIT down -3.0% to EUR 581 million
• Free cash flow of EUR 14 million due to normalisation of working capital; net leverage at 2.8x
• Underlying EPS of EUR 0.85
• FY 23 outlook updated 

A message from Fabien Simon, CEO of JDE Peet’s

"In the first half of 2023, we delivered resilient financial performance in a category that is globally adjusting in the aftermath of the pandemic, and coping with persistent inflation. Against this backdrop and despite an industry volume decline in Europe, we delivered mid-single-digit top-line growth, driven by our premium product portfolio, E-commerce acceleration and strong performance in the US and in emerging markets.

We continue to be guided by our renewed strategic framework to become more global, more digital and more sustainable. We are now very pleased to witness the in-market outperformance of JDE Peet's globally from the disciplined execution of our strategic priorities.

In a fast evolving environment, we remain focused and nimble. In the first half of 2023, we have initiated the transition of an omni-channel organisation in Europe, and towards a local portfolio in Russia. In parallel, we will increase our global consumer reach, with the intended acquisition of Maratá's coffee & tea platform in Brazil and the launch of L’OR Barista in the US.

While anticipating an acceleration of our organic sales growth in H2, we expect the business environment to remain volatile. As there is uncertainty of the impact of the transition from international brands to local brands in Russia, we believe it is more appropriate to guide our full year organic adjusted EBIT growth in the range of a low single-digit increase and low single-digit decrease.

The tangible progress of our transformation - brand health, team engagement, gross profit and sustainability, just to name a few - is positioning us well to deliver sustained shareholder returns and societal value."

Broad-based progress made on our strategic Sustainability agenda

In the first half of 2023, we have made good progress against our strategic Sustainability roadmap and multi-year objectives. Our long-term Sustainability agenda is now deeply embedded across the entire organisation and in our strategic decision making. Our carbon accounting system has been rolled out and enables us to track our carbon footprint up to the individual SKU level and allows to have a full view of our carbon reduction performance alongside financial performance.