JDE Peet’s has posted good results for the first half of the year. Although coffee prices remain volatile and consumers are watching their wallets, the coffee (Douwe Egberts) and tea (Pickwick) group is revising its forecasts upwards.
Especially outside the home
Despite difficult market conditions, marked by rising green coffee prices and growing demand for affordable products, JDE Peet’s managed to increase both sales and profitability in the first half of the year.
In the first half of 2024, total sales rose by 5.6 % to 4.2 billion euros. Organic sales growth was driven by a 2.4 % rise in prices and a 1.2 % increase in volume. The in-home and out-of-home segments achieved organic growth of 3.4 % and 4.2 % respectively.
Although operating profit doubled to 672 million euros, underlying profit fell by 10 % to 370 million euros, mainly as a result of a fall in the share price. Adjusted EBIT rose organically by 17.5 % to 692 million euros.
China and e-commerce
“We delivered a solid, broad-based performance, despite a challenging environment”, interim CEO Luc Vandevelde said. He highlighted the double-digit growth rates in e-commerce and China, as well as the strong performance of brands such as Peet’s and L’OR Barista.
Although inflation persists and green coffee prices remain volatile, meaning prices will continue to rise as consumers seek affordable options, Vandevelde dared to raise expectations for the year as a whole. JDE Peet’s now expects sales growth of 3 to 5 %, with adjusted EBIT up by 10 %.
