MILAN – JDE Peet’s reported today full-year results beating expectations, with sales of €8.837 billion ($9.27 billion). The world’s number one pure-play coffee and tea company reported an EBIT of EUR 1.28 billion ($1.34 billion) for FY 2024, up 13.2% year-on-year and above the analysts’ consensus of EUR 1.25 billion, thanks to organic growth and cost discipline. The only negative was underlying profit and underlying EPS, which were down 0.7% to EUR729m ($ 764.6 million) and EUR1.50 respectively. The company said it expected its adjusted EBIT to fall by a low single-digit percentage on an organic basis this year.
Key results:
- 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
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.
Europe
Organic sales growth of 0.5% was driven by an increase in price of 1.3% and a decrease in volume/mix of -0.8% as performances in various European markets were impacted by retaliations during price negotiations with retailers. Notable strong performances were delivered in countries such as the UK, Ireland and the Nordics, and brands including L’OR, Douwe Egberts and Kenco.
Reported sales increased by 0.8%. Adjusted EBIT increased organically by 4.3%, reflecting an increase in gross profit and a stable level of A&P.
LARMEA
Organic sales growth of 21.2% was driven by an increase in volume/mix of 3.3% and 17.9% in price. Most markets delivered positive vol/mix while Brazil experienced soft market conditions. Organic sales growth was particularly supported by brands such as Pilão and Jacobs. Maratá has been successfully consolidated and its contribution is in line with the business plan.
Reported sales increased by 32.1%, including a positive scope effect of 22.4% related to the consolidation of Maratá, and a foreign exchange of -11.5%. Adjusted EBIT increased organically by 25.3%, reflecting an increase in gross profit, lower A&P requirements for the roll-out of L’OR Barista in the U.S., and a low base of comparison.
Peet’s
Organic sales growth of 5.7% was driven by an increase of 5.0% in volume/mix and 0.7% in price. Peet’s In-Home business continued to deliver competitive growth across its Peet’s, Stumptown, and Intelligentsia brands. In Peet’s U.S. coffee stores, same-store sales and ticket size were up, and Peet’s China continued to deliver strong double-digit organic sales growth.
Reported sales increased by 9.0%, which included a positive scope effect of 3.3% related to the consolidation of Caribou since 26 March 2024 and a foreign exchange effect of -0.1%. Adjusted EBIT increased organically by 23.8%, driven by strong operational performance, cost efficiencies, partially offset by higher A&P.
APAC
Organic sales growth of 1.5% was driven by an increase of 3.8% in price and -2.3% in volume/mix, with solid In-Home performance partially offset by soft performance in APAC’s Away-from-Home business. Sales performance was geographically mixed, with solid performances in countries such as China, Australia and the Philippines, partially offset by softer performances in countries such as New Zealand and Malaysia.
Reported sales decreased by 0.7%. Adjusted EBIT increased organically by 2.3%, with a stable level of A&P.
JDE Peet’s: Business combinations
On 4 January 2024, JDE Peet’s completed the acquisition of the Brazilian coffee & tea business Indústrias Alimentícias Maratá Ltda (“Maratá”) from JAV Group for a total purchase consideration of EUR 682 million, net of cash acquired. The acquisition expands JDE Peet’s’ emerging markets presence. Maratá’s coffee & tea business is predominantly present in the northern part of Brazil through its long-standing and well-known brands Café Maratá and Chá Maratá.
The business employs around 1,200 employees, operates two manufacturing plants and reported around BRL 1.3 billion annual average sales for the last two years.
JDE Peet’s applied the acquisition method to account for the Maratá business combination and included all assets and liabilities at fair value in accordance with IFRS 3. Consequently, purchase price allocation of all identifiable assets and (contingent) liabilities acquired were performed. The purchase price allocation was finalised in the year 2024.
On 26 March 2024, JDE Peet’s completed a long-term global license agreement to manufacture, market and sell Caribou consumer and foodservice coffee products, excluding Caribou coffeehouses, for a total consideration of EUR 245 million.
The transaction provides JDE Peet’s a strong platform to expand its premium coffee portfolio in North America. Under the terms of the agreement, JDE Peet’s acquired Caribou’s roasting operations in Minneapolis, Minnesota. The two companies have also reached a long-term strategic arrangement under which JDE Peet’s will supply coffee products for sale in Caribou’s coffeehouses.
The Caribou business was part of the JAB group of companies and consequently the accounting method of a business combination under common control was applied. Under this method, the assets and liabilities of the acquired business are recognised at the book values recognised in the ultimate parent entity’s consolidated financial statements (adjusted for the alignment of accounting policies). The difference between the purchase consideration and the book values of the acquired assets and liabilities amounted to EUR 163 million and was recognised in equity. Since the acquisition in 2024, Caribou contributed revenue of EUR 38 million and a net loss of EUR 4 million.
Sustainability
JDE Peet’s continued to make good progress on its Sustainability programme “Common Grounds” in 2024:
- A reduction of 30.0% in Scope 1 & 2 GHG emissions, versus base year 20202
- 92.4% of our green coffee was responsibly sourced, excluding Maratá3
- 79.3% of our packaging was either reusable, recyclable or compostable
Rafa Oliveira, CEO of JDE Peet’s, stated:
“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.”
JDE Peet’s: 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.
JDE Peet’s: 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
