JDE Peet’s reports half-year results 2022

Successfully navigating the macro backdrop, with another strong set of quality results

PRESS RELEASE

Amsterdam, 3 August 2022

Key items¹

• Organic sales up +15.7% (+19.7% reported), driven by +15.9% price and stable volume/mix of -0.2%
• Organic gross profit up +1.4%, coupled with increasing investments for growth (organic SG&A +4.2%)
• Organic adjusted EBIT down -2.1% to EUR 631 million
• Free cash flow increased to EUR 696 million; leverage at 2.78x incl. EUR 500 million share buyback
• Underlying EPS up +18.3% to EUR 1.05
• Amplifying progress on sustainability commitments, with step-change in responsible sourcing
• FY 22 outlook confirmed
  
  

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

“Half-way through 2022, we delivered very well on our commitments, despite unprecedented economic and geopolitical disruptions, exacerbated by the tragic war in Ukraine. Our strong set of results is a testament to the resilient growth profile of JDE Peet’s, supported by powerful brands, leading market positions and talented teams around the world.

We are successfully navigating through supply chain disruptions, pandemic effects and mounting inflation, while keeping course of our value creation agenda, centred around quality and inclusive revenue growth. E-commerce sales kept growing organically at a double-digit rate, as did revenue in the U.S. and in China in-home, while we are accelerating the store expansion there.

Confronted with an exceptional level of cost inflation, we stepped-up efficiencies, and leveraged portfolio and revenue management. We implemented affordable price increases of less than 1 euro-cent per cup, on average. As a result, the absolute gross profit held up well year-over-year.

Not only did we lead on pricing, delivered double-digit earnings growth per share and further increased our investments for growth, but we also amplified our sustainability agenda, with the ambition to elevate the industry standard, targeting 80% responsibly sourced coffee by the end of 2022.

Based on the progress made in the first half of 2022, we remain confident to reach our full-year outlook, while we continue to navigate, with humility and agility, the unpredictable inflationary environment, geo-political unrest and ongoing effects of the pandemic."


Advancing on Sustainability

Through its Common Grounds sustainability programme, JDE Peet's has embarked on a journey built on authenticity, to support inclusive and regenerative behaviours from farm to cup and to embrace circular practices across the entire value chain. The sustainability programme consists of three pillars: Responsible Sourcing, fostering thriving agricultural supply chains; Minimised Footprint, to reduce the company's environmental impact; and Connected People, to engage the company's employees and its communities.