JDE Peets NV
AEX:JDEP

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JDE Peets NV Logo
JDE Peets NV
AEX:JDEP
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Price: 31.6 EUR -0.13% Market Closed
Market Cap: 15.4B EUR

JDE Peets NV
Investor Relations

JDE Peet's NV, a prominent name in the global coffee and tea industry, has roots tracing back to the storied histories of Jacobs and Douwe Egberts, which were both founded in the 18th century. Today, it acts as one of the world's leading pure-play coffee and tea companies, engaging nearly entirely in the coffee and tea sector, operating across multiple continents. The company was officially formed in 2015 through the merger of DE Master Blenders 1753 and Mondelez's coffee business, creating a powerhouse with brands like Peet's Coffee, Jacobs, Douwe Egberts, and L’OR under its belt. With a unique business model rooted in both consumer convenience and product authenticity, JDE Peet's embraces significant avenues of distribution including supermarkets, premium coffee shops, and online platforms.

The revenue engine of JDE Peet's is fueled by its wide array of branded coffee products, which range from mass-market instant coffee to premium single-origin beans, catering to a diverse consumer base. This extensive brand portfolio allows them to capture different segments of the market, adapting to regional tastes and preferences. Their structure supports a vertically integrated operation, covering every step of the supply chain from sourcing raw coffee beans to manufacturing and packaging finished products. This operational efficiency combined with strategic global distribution ensures that JDE Peet's remains competitive, selling its products in over 100 countries. The company also capitalizes on both its in-home and out-of-home segments, leveraging established retail relationships and coffee shop operations to drive revenue, continually adjusting to shifts in consumer consumption patterns.

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Last Earnings Call
Fiscal Period
Q2 2023
Call Date
Aug 2, 2023
AI Summary
Q2 2023

Sales Growth: JDE Peet’s delivered 3.5% organic sales growth in H1 2023, helped by strong pricing and premium categories, with Away-from-Home and emerging markets outperforming.

Profit Pressure: Adjusted EBIT declined by 3% organically due to inflation, lower volumes in Europe, and higher marketing spend.

Europe Weakness: European volumes saw a double-digit decline, mainly from choices not to engage in unprofitable promotions, but distribution is now restored and H2 is expected to improve.

Russia Transition: The company is transitioning to a local brand portfolio in Russia, leading to lower sales/profits from the region and a €185 million goodwill impairment; no more impairments expected.

Outlook: Organic sales growth guidance confirmed at the high end of 3–5% for 2023, but EBIT guidance is for a low-single-digit change (increase or decrease) due to Russia uncertainty.

Free Cash Flow: H1 free cash flow was €14 million due to working capital normalization; full-year guidance is ~€400 million and net leverage will remain below 3x.

Strategic Moves: Announced acquisition of Maratá in Brazil to strengthen emerging markets presence; e-commerce and premium products continue to drive growth.

Key Financials
Organic Sales Growth
3.5%
Organic Sales Growth (In-Home)
2.2%
Organic Sales Growth (Away-from-Home)
9%
Pricing
6.8%
Volume/Mix
-3.3%
Reported Sales
€3.988 billion
Adjusted EBIT
Not specified (company-wide); Europe: €476 million; LARMEA: €125 million; APAC: €51 million; Peet's: €67 million
Underlying Earnings Per Share
€0.85
Free Cash Flow
€14 million (H1); €1.72 billion (3-year average); FY guidance: ~€400 million
Net Leverage
2.8x
Global Brands Sales Growth
11.7%
Regional/Local Brands Sales Growth
1.4%
Earnings Call Recording
Other Earnings Calls
2023
2021

Management

Mr. Rafael de Oliveira
CEO & Stand-in Executive Director
No Bio Available

Contacts

Address
NOORD-HOLLAND
Amsterdam
Oosterdoksstraat 80
Contacts
+310205581212.0
www.jdepeets.com