JDE Peet’s: reports half-year results 2021

Amsterdam / NL. (jab) JDE Peet’s (JDE), the world’s largest pure-play coffee and tea group by revenue, reported its financial results for the first half 2021, the period from January to June. JDE made good progress and broad-based performance, delivered in a quality way, the company says in its statement. Financial performance in brief:

  • Total organic sales grew 4.2 percent, supported by In-Home momentum (+4.9 percent) and fuelled by Single Serve and Beans growing double-digit. E-commerce grew by 30 percent In-Home
  • Away-from-Home returned to profitability, despite largely stable sales base on average for H1 (+0.7 percent) although with visible positive reopening effects in Q2
  • Organic adjusted Ebit grew 0.8 percent to EUR 636 million, with gross profit margin expansion
  • Free cash flow of EUR 553 million and net debt reduced to EUR 4,660 million
  • Leverage reduced to 2.98x, from 3.23x at the end of FY 20
  • Underlying EPS grew 12.9 percent, mainly supported by operational improvements
  • Positive market share performance across technologies and continued progress on Sustainability
  • Confident to reach FY 21 outlook

Chief Executive’s Summary

CEO Fabien Simon: «I would like to thank all our teams around the world for their perseverance while successfully navigating our company through all the ongoing challenges and complexity and for delivering this strong set of results.

«We are pleased with our first-half 2021 results, across all key metrics, including top-line, profitability, cash generation and in-market performance. Guided by our refreshed strategy, we delivered 4.2 percent organic sales growth, in a quality way, with a gross profit margin expansion of 26 basis points that enabled JDE Peet’s to reinvest behind its powerful portfolio of brands and future growth opportunities.

«In the first half of the year, we also continued to evolve our business portfolio. We announced partnerships with J.M. Smucker in the US and with Pret A Manger in the UK, the acquisition of Campos in Australia and the divestment of two small businesses in the Netherlands and France.

«We also significantly optimised our financial position and capital structure, reducing our leverage to below 3x, and our average cost of debt to around 1.5 percent, from our successful refinancing and inaugural bond issue.

«Looking at our Sustainability agenda, I am very pleased that in June, our European manufacturing footprint reached Zero Landfill status.

«Based on the progress made in the first half of 2021 and our current expectations for the remainder of the year, we remain confident to reach our outlook for the year, being intentional on managing inflation and navigating the enduring uncertainty of the pandemic.»

Sustainability

«We continued to make good progress on our Sustainability agenda in the first half of 2021. In March, when we refinanced our bank facilities, we connected EUR 2.5 bn of our investment grade facilities to our sustainability ambitions. That same month, we also committed to adopt a Science-Based Target and we are on track to announce a science-based greenhouse gas reduction target through SBTi in the second half of this year. In manufacturing, our facility in Gavle, Sweden, was the first one to achieve the PAS2060 certification for carbon neutrality in March, and in June, all our manufacturing facilities in Europe reached the Zero Landfill status for the first time.»

Outlook 2021

«Although vaccination programmes around the world continue to support the gradual lifting of lockdown measures, the Covid situation remains highly volatile and uncertain as, unfortunately, spikes in infection rates in a number of countries continue to lead to new lockdowns. This continues to limit the visibility and predictability regarding the timing and the pace of the recovery in our Away-from-Home businesses.

«Within this context, we continue to expect organic sales growth of 3 to 5 percent in FY 21, assuming a gradual recovery in Away-from-Home. We also continue to expect organic adjusted Ebit to grow in the low single-digit range in FY 21, as we step up our investments for growth, notably in marketing and innovation support.

«Our commitment to reduce our leverage to below 3x net debt to Ebitda was achieved by the end of June.»

For additional information please read the Company’s PDF file below (161 KB):

20210805-JDE-H1-2021
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