JDE Peet’s reports full-year results 2020

H2 back to growth with better underlying momentum 

Press release

Amsterdam, 9 March 2021

Key items¹

• Pure-play focus and powerful portfolio drove record In-Home organic sales growth of 9.1% in FY 20
• Total organic sales growth accelerated from -1.1% in H1 to 0.7% in H2, with In-Home at 9.8% and Away-from-Home at -29.8% due to new lockdowns in Q4
• Progress across all sustainability commitments, with notable increase in share of third-party certified/verified coffee; 87% of packaging designed to be reusable, recyclable or compostable
• Organic adjusted EBIT growth of 6.2% to EUR 1,278 million in FY 20
• Free cash flow of EUR 877 million, after one-off tax and IPO payments of EUR 277 million
• Leverage improved to 3.2x, from 4.2x at the end of FY 19
• Proposal to pay a total cash dividend of EUR 0.70 per share in two equal instalments
• FY 21 outlook: organic sales growth of 3 to 5%, with a catch-up on the marketing investment level, will result in a low single-digit organic increase in adjusted EBIT

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

“In an unprecedented year, JDE Peet’s employees and partners worked tirelessly to serve our loved coffee and tea brands to consumers across the six continents. I would like to thank the teams who rallied together, supported communities with initiatives across 30 countries, while ensuring the health and safety of our employees.

JDE Peet's delivered a strong performance in 2020, demonstrating once again the resilience of the category we participate in, as well as the strengths and agility of our capabilities built over the last 268 years. As the world's largest coffee and tea pure player, we have become more relevant than ever before. We are evolving our portfolio and channel capabilities towards the fastest growing and more premium In-Home propositions through our unique set of global and local brands. Our strategic choices and investments supported a record In-Home organic growth of 9.1% in 2020, with increasing momentum in the second part of the year on sales growth, pricing and in-market performance.

We improved our leverage, and reduced net debt by another EUR 462 million in the second half of 2020. Our confidence in sustained strong free cash flow generation enables us to propose a cash dividend of EUR 0.70 per share.

2021 is expected to be another uncertain year and the long-lasting impacts of the pandemic are unclear and will need to be assessed, in particular the implications for the Away-from-Home channel. We therefore consider it appropriate to adjust our medium- to long-term targets. We are very confident of our growth opportunities to support 3 to 5% organic sales growth and mid-single-digit organic adjusted EBIT growth with quality margins, further deleveraging, and funding inorganic growth from our strong cash flow generation. These medium- to long-term targets point to the 2021 outlook of organic sales growth of 3 to 5%, combined with a low single-digit organic increase in adjusted EBIT, delivered in a quality way, with A&P trending back towards the FY 19 level."