[[{“value”:”Image: JDE Peet’s
Global beverage brand JDE Peet’s has released its half-year results for 2024.
According to the report, the company’s total sales increased by 5.6 per cent to €4,210 million. This excluded a 1.8 per cent decrease effect which, according to the brand, was related to foreign exchange.
Following the results, sales increased by 3.6 per cent on an organic basis, and was driven by a price effect of 2.4 per cent, and a volume/mix effect of 1.2 per cent. In-home sales also increased gradually by 3.4 per cent, and away-from-home sales by 4.2 per cent.
The company also recorded a five-year organic compound annual growth rate (CAGR) for sales at 5.0 per cent, while free cash flow was €315 million in the first half of 2024.
“I am very pleased with this strong set of results for the first half of 2024. We delivered robust, broad-based performance across top-line, profitability and cash flow, despite operating in a challenging environment that continues to be characterised by rising green coffee prices and a growing demand for more affordable offerings,” says Interim CEO of JDE Peet’s Luc Vandevelde.
The brand reported that profit for the period increased by 86.5 per cent to €360 million. Underlying profit excluded all altering items such as net of tax, which decreased by 10.0 per cent to €370 million. This was recorded as a result that was propelled by a non-cash, non-tax-deductible impact of €113 million from a fair value change in JDE Peet’s equity derivatives.
The company reported this was due to the decrease in the share price in H1 24. Excluding the fair value change, it also highlighted underlying effective tax rate would have been approximately 25 per cent and underlying profit at €483 million, or 17.5 per cent higher than in H1 23.
Also detailed as part of the results was net debt, which increased by €890 million to €4,780 million in the first half of 2024. According to the company, this was related to its acquisition of Maratá and Caribou, a Brazilian coffee and tea company.
“In the first half, we continued to make good progress in our strategic priorities, achieving double-digit growth in e-commerce and China, continued good performance for Peet’s and L’OR Barista. The integration of Maratá and Caribou is also well underway, with both delivering results that are in line with our expectations,” says Vandevelde.
In terms of the beverage company’s outlook for 2024, it is positive that it will continue to grow based on its H1 performance and expectations for H2, and takes into account the inflation in green coffee prices.
“We are confident in raising our full-year outlook across top-line, profitability and cash flow, also enabling us to bring down our net leverage to below 3x within 12 months after closing Maratá and Caribou,” says Vandevelde.
Regarding the company’s commitment to sustainability, the report details its alignment with greenhouse gas emissions reduction ambition to be net-zero in 2050, which includes the new Forestry, Land and Agriculture (FLAG) target.
Based on the results, JDE Peet’s’ liquidity position remains secure, with its total liquidity amounting to €2.7 billion, including a cash position of €1.2 billion, and excluding restricted cash. Its available committed RCF facilities currently consist of €1.5 billion.
For more information on the report, click here.
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