JDE Peet’s is satisfied with its financial results for 2024: te coffee and tea producer has managed to grow despite soaring commodity prices, although the growth is almost entirely due to price increases. In Europe, conflicts with distributors continue as a result.
Profits up despite soaring prices
JDE Peet’s has reported an organic sales growth of 5.3 % for the past year, driven by a 4.5 % increase in prices and a 0.7 % increase in volume. Total sales rose by 7.9 % to 8.84 billion euros. Adjusted operating profit (EBIT) rose organically by 10.4 % to 1.3 billion euros, helped by a 6.1 % increase in gross profit.
The results were a welcome relief for the company, as purchase prices for green coffee are soaring due to adverse weather conditions and disruptions in the supply chain. However, the significantly higher selling prices charged by the coffie producer have led to a reduction in sales volumes. In Europe, for example, organic sales rose by 0.5 %, with a 1.3 % rise in prices offsetting a 0.8 % fall in volumes.
During the annual price negotiations, JDE Peet’s faced numerous boycotts from distributors, some of which continue to this day. The coffee giant is nonetheless expecting an single-digit organic sales growth for 2025, according to its new CEO Rafa Oliveira. At management level, Yang Xu will take over as CFO in May 2025, replacing Scott Gray. Xu brings more than twenty years of experience, including as senior vice president of Kraft Heinz.
