JDE Peet’s reports strong growth in 2021
Coffee giant JDE Peet’s achieved a 6.1 per cent increase in organic sales and adjusted pre-tax earnings of EUR€1304 million (about US$1472 million) over 2021, according to a full-year report released on 24 February.
“I am very pleased with JDE Peet’s’ performance in 2021. We delivered on all our commitments, in a high-quality way, in another year of unexpected global disruptions,” says JDE Peet’s CEO Fabien Simon.
The at-home business continued to deliver strong organic sales growth of 5.0 per cent while away-from-home sales increased by 11.5 per cent. This result is largely attributed to the positive effects of (partial) coffee shop re-openings in most regions, which more than offset the negative effects of lockdown measures, most notably in the second half of the year.
An expansion of growth investments was self-funded by increasing gross profits, and free cash flow increased to EUR€1368 million (about US$1544).
Market shares remained solid despite price increases, and the underlying earnings per share rose 13.7 per cent to EUR€1.79.
Based on these strong results, JDE Peet’s has proposed cash dividend to shareholders of EUR 0.70 per share in two equal instalments.
Sustainability goals have been strengthened, and the report predicts JDE Peet’s will meet its target of 100 per cent responsibly-sourced coffee, tea and palm oil by 2025.
JDE Peet’s expects market volatility to continue in 2022 as cost inflation and some effects of COVID-19 persist. It is aiming for a stable level of gross profit over the next 12 months and anticipates double-digit organic sales growth.
The full report is available here.
Source: GCR Mag