JDE Peet's delivered strong 2024 results, exceeding elevated H1 guidance
Increases shareholder returns through higher dividend and multi-year share buyback plan
PRESS RELEASE
Amsterdam, 26 February 2025
Key items1
Organic sales up +5.3%, driven by 4.5% price and 0.7% volume/mix; Reported sales up 7.9%
Organic adjusted gross profit up +6.1%; Reported gross profit up +7.9%
Organic adjusted EBIT up +10.4% to EUR 1.3 billion
Free cash flow of EUR 1,044 million; Net leverage at 2.7x
Proposal to increase cash dividend by 4.3% to EUR 0.73 per share
Intention to launch multi-year share buyback programme of up to EUR 1 bn, with EUR 250 mln in 2025
A message from Rafa Oliveira, CEO of JDE Peet’s
“We are very pleased with this strong set of broad-based results, especially considering the increased green coffee inflation. Innovation, driven by consumer relevance, lies at the heart of our strategy, enabling us to meet consumer preferences while enhancing the value of every cup. In 2024, we launched a range of new products to address evolving consumer needs, including the L'OR Iced Coffee, Peet's Ultra Coffee Concentrate in the U.S., OldTown's Hot & Cold premium instant mixes in Asia, and the roll-out of the first fully recyclable at-home paper refill pack for soluble coffee across 17 markets.
Looking ahead at 2025, we have set 5 key priorities. First, we will maintain strict pricing discipline to counter the unprecedented green coffee inflation. Second, we are identifying efficiencies to fund brand investments. Third, we will be highly selective and rigorous in our resource allocation and deployment of capital. Fourth, we are reinvigorating an organic growth mindset while increasing agility and fostering an ownership culture. Fifth, we will put increased emphasis on shareholder value creation as disciplined capital allocation and strong free cash flows will enable us to grow future returns to shareholders. More details and updates on our progress will be provided during our Capital Markets Day on July 1, 2025.
Our strong 2024 performance positions us well for 2025 and beyond, with stronger foundations and positive momentum. Therefore, we propose to increase the dividend by 4.3% and plan to initiate a multi-year share buyback cycle of up to EUR 1 billion, with up to EUR 250 million allocated for share buybacks in 2025.”
Update on CFO transition On 22 January 2025, JDE Peet's announced that Scott Gray, CFO, has decided to step down. In May, Scott will be succeeded by Mrs. Yang Xu, a French national of Chinese descent. Yang joins JDE Peet’s from the Swiss-based Straumann Group where she currently serves as Chief Financial Officer. Yang, who has lived and worked in the U.S. and various European countries, brings more than 20 years of experience in finance, strategy, operational and commercial functions. Prior to Straumann Group, Yang was Senior Vice President, Head of Corporate Development and Global Treasurer and a member of the company’s Executive Committee at Kraft Heinz.
Dividend 2024 JDE Peet's' Board proposes to increase the 2024 dividend by 4.3% to EUR 0.73 per share in cash. The dividend will be paid in two instalments. The first payment, of EUR 0.37, will be made on Friday, 11 July 2025, with the ex-dividend date on Monday, 7 July 2025 and the record date on Tuesday, 8 July 2025. The second payment, of EUR 0.36, will be made on Friday, 23 January 2026, with the ex-dividend date on Monday, 19 January 2026 and the record date on Tuesday, 20 January 2026. The dividend proposal is subject to approval by the Annual General Meeting of Shareholders to be held on Thursday, 19 June 2025.
Initiation of a multi-year share buyback cycle Given JDE Peet's strong confidence in its long-term value creation opportunities and strong free cash flow generating capabilities, the company intends to initiate a multi-year share buyback cycle of up to EUR 1 billion, with up to EUR 250 million for share buybacks in 2025. More information will be disclosed at the time the share buyback starts.
Green coffee inflation Green coffee prices have surged to historic highs, driven by various factors including atypical weather patterns in key coffee-growing countries, multiple supply chain disruptions, and broader macroeconomic and geopolitical factors. As a result, green coffee prices have, on average, more than doubled, compared to a year ago, and are not expected to decline in the near term. To mitigate this impact, we will continue to be disciplined on pricing, while also implementing a range of productivity and efficiency measures to absorb as much of the cost inflation headwind as possible, passing on only what is unavoidable while maintaining affordability for our consumers. As a category leader, we remain committed to creating value across the entire supply chain— supporting coffee farmers in adopting sustainable practices while delivering consumers and retailers innovative, high-quality and enjoyable coffee products.
Outlook 2025 JDE Peet's expects the following for 2025:
High single-digit organic sales growth
Low single-digit decline in adjusted EBIT on an organic basis, with delivery second-half-weighted
Free cash flow of around EUR 1 billion, with delivery second-half-weighted
FINANCIAL REVIEW FULL-YEAR 2024
in EUR m (unless otherwise stated)
FY 2024
FY 2023
Organic change
Reported change
Sales
8,837
8,191
5.3%
7.9%
Adjusted gross profit 1
3,273
3,051
6.1%
7.3%
Gross profit
3,257
3,018
6.7%
7.9%
Adjusted EBITDA 1
1,587
1,426
—
11.3%
Adjusted EBIT 1
1,277
1,128
10.4%
13.2%
Operating profit
1,056
685
52.4%
54.2%
Underlying profit for the period 1
729
734
—
-0.7%
Profit for the period
543
364
—
49.2%
Underlying EPS (EUR) 1,2,3
1.50
1.51
—
-0.7%
Basic EPS (EUR) 2
1.15
0.76
—
51.3%
1 Alternative Performance Measure. Refer to Reconciliation of non-IFRS measures on page 6
2 Based on the weighted average number of shares outstanding
Total reported sales increased by 7.9%. Excluding a 4.7% positive contribution from the consolidation of Maratá and Caribou and a -2.1% effect related to foreign exchange, total sales increased by 5.3% organically. Organic sales growth reflects a price effect of 4.5% and a volume/mix effect of 0.7%. All categories contributed to the organic sales growth with double-digit growth in Beans, high single-digit growth in Capsules and Instants, and mid-single-digit growth in Roast & Ground.
Adjusted EBIT increased organically by 10.4% with positive contribution from all four segments and driven by an organic increase of 6.1% in adjusted gross profit and disciplined cost control. A&P spend was slightly lower in the year, reflecting a high comparable base from the 2023 U.S. launch of L'OR Barista, which required less investments in its second year. In Europe, APAC and Peet’s, A&P spend remained stable or increased year-over-year.
Profit for the period increased by 49.2%. Underlying profit - excluding all adjusting items net of tax - decreased by -0.7% to EUR 729 million. This performance was mainly driven by an unfavourable non-cash, non-tax deductible impact of EUR 154 million from a fair value change in the company's equity derivatives, due to the decrease in the company's share price in 2024. Excluding this fair value change, the underlying effective tax rate would have been around 25% and underlying profit would have been EUR 883 million, or 12.2% higher than in FY 23.
Net debt increased by EUR 439 million to EUR 4.3 billion on 31 December 2024, which was driven by the transaction considerations related to Maratá and Caribou. Supported by strong operational performance and EBITDA growth, a free cash flow of EUR 1,044 million and disciplined capital allocation, the net leverage ended at 2.73x net debt to adjusted EBITDA on 31 December 2024 which is similar to the level at the end of 2023.
Rafa Oliveira (CEO) and Scott Gray (CFO) will host a conference call for analysts and institutional investors at 10:00 AM CET today to discuss the full-year 2024 results. A live and on-demand audio webcast of the conference call will be available via JDE Peet’s’ Investor Relations website.
1 This press release contains Alternative Performance Measures (APMs), which are not recognised measures of financial performance under IFRS. For a reconciliation of these APMs to the most directly comparable IFRS financial measures, refer to Reconciliation of non-IFRS measures on page 6.
ENQUIRIES
Media
Khaled Rabbani Media@JDEPeets.com +31 20 558 1753
Investors & Analysts
Robin Jansen IR@JDEPeets.com +31 6 159 44 569
About JDE Peet’s JDE Peet’s is the world's leading pure-play coffee and tea company, serving approximately 4,400 cups of coffee or tea per second. JDE Peet's unleashes the possibilities of coffee and tea in more than 100 markets with a portfolio of over 50 brands including L’OR, Peet’s, Jacobs, Senseo, Tassimo, Douwe Egberts, OldTown, Super, Pickwick and Moccona. In 2024, JDE Peet’s generated total sales of EUR 8.8 billion and employed a global workforce of more than 21,000 employees. Read more about our journey towards a coffee and tea for every cup at www.jdepeets.com.
IMPORTANT INFORMATION
Market Abuse Regulation
This press release contains information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
Presentation
The condensed consolidated unaudited financial statements of JDE Peet’s N.V. (the "Company") and its consolidated subsidiaries (the "Group") are prepared in accordance with IFRS® Accounting Standards as endorsed for use in the European Union by the European Commission and in conformity with the Dutch Civil Code ("IFRS"). In preparing the financial information in these materials, except as otherwise described, the same accounting principles are applied as in the consolidated financial statements of the Group as of, and for, the year ended 31 December 2023 and the related notes thereto. All figures in these materials are unaudited. In preparing the financial information included in these materials, most numerical figures are presented in millions of euro. Certain figures in these materials, including financial data, have been rounded. In tables, negative amounts are shown in parentheses. Otherwise, negative amounts are shown by "-" or "negative" before the amount.
Forward-looking statements
These materials contain forward-looking statements as defined in the United States Private Securities Litigation Reform Act of 1995 concerning the financial condition, results of operations and businesses of the Group. These forward-looking statements and other statements contained in these materials regarding matters that are not historical facts and involve predictions. No assurance can be given that such future results will be achieved. Actual events or results may differ materially as a result of risks and uncertainties facing the Group. Such risks and uncertainties could cause actual results to vary materially from the future results indicated, expressed or implied in such forward-looking statements. There are a number of factors that could affect the Group’s future operations and could cause those results to differ materially from those expressed in the forward-looking statements including (without limitation): (a) competitive pressures and changes in consumer trends and preferences as well as consumer perceptions of its brands; (b) fluctuations in the cost of green coffee, including premium Arabica coffee beans, tea or other commodities, and its ability to secure an adequate supply of quality or sustainable coffee and tea; (c) global and regional economic and financial conditions, as well as political and business conditions or other developments; (d) interruption in the Group's manufacturing and distribution facilities; (e) its ability to successfully innovate, develop and launch new products and product extensions and on effectively marketing its existing products; (f) actual or alleged non-compliance with applicable laws or regulations and any legal claims or government investigations in respect of the Group's businesses; (g) difficulties associated with successfully completing acquisitions and integrating acquired businesses; (h) the loss of senior management and other key personnel; and (i) changes in applicable environmental laws or regulations. The forward-looking statements contained in these materials speak only as of the date of these materials. The Group is not under any obligation to (and expressly disclaim any such obligation to) revise or update any forward-looking statements to reflect events or circumstances after the date of these materials or to reflect the occurrence of unanticipated events. The Group cannot give any assurance that forward-looking statements will prove correct and investors are cautioned not to place undue reliance on any forward-looking statements. Further details of potential risks and uncertainties affecting the Group are described in the Company’s public filings with the Netherlands Authority for the Financial Markets (Stichting Autoriteit Financiële Markten) and other disclosures.
Market and industry data
All references to industry forecasts, industry statistics, market data and market share in these materials comprise estimates compiled by analysts, competitors, industry professionals and organisations, of publicly available information or of the Group's own assessment of its markets and sales. Rankings are based on revenue, unless otherwise stated.
