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JDE Peet’s boosts HY 2022 results as pandemic lockdowns lift

JDE Peet’s boosts HY 2022 results as pandemic lockdowns liftLogo provided.

JDE Peet's, the Netherlands-based company owned by JAB Holdings that also owns Peet's Coffee, Douwe Egberts, Jacobs and other brands, boosted its sales and earnings for the first half of 2022 over the prior year period, with out-of-home sales especially strong as a result of lifted lockdowns, according to an earnings report.

Highlights include:

  • Sales rose 19.7% from 3.254 billion euros ($3.3 billion) for HY 2021 to 3.89 billion euros ($3.95 billion) for HY 2022.
  • Underlying profit rose 17.3% from 446 million euros ($452.9 million) to 523 million euros ($531.09 million) for the comparative half years.
  • Underlying EPS rose 18.3% from 0.89 euros (90 cents) to 1.02 euros ($1.04).
  • Reported basic EPS rose 33.9% from 0.76 euros (77 cents) to 1.02 euros ($1.04).

The out-of-home segment, which benefitted from the continued lifting of lockdown measures, posted organic growth of 39.9% driven by an increase of 30.3% in volume/mix and 9.6% in price, with notable strong performance in countries such as Germany, The Netherlands and France and from brands including Douwe Egberts, Jacobs and Gevalia.

Shares traded today at $31.51 against a 52-week range of $27-$37.75.

The 3.89 billion euros ($3.95 billion) in quarterly revenue beat analyst expectations by 10 million euros ($10.15 million), according to Seeking Alpha.

"We are successfully navigating through supply chain disruptions, pandemic effects and mounting inflation, while keeping course of our value creation agenda, centered around quality and inclusive revenue growth," Fabien Simon, CEO, said in the press release. "E-commerce sales kept growing organically at a double-digit rate, as did revenue in the U.S. and in China in-home, while we are accelerating the store expansion there. Confronted with an exceptional level of cost inflation, we stepped-up efficiencies, and leveraged portfolio and revenue management. We implemented affordable price increases of less than 1 euro-cent per cup, on average. As a result, the absolute gross profit held up well year-over-year."

JDE Peet's expects the business environment to remain volatile for the remainder of 2022 as input cost inflation, geo-political unrest and certain effects of the pandemic persist. Within this context, the company continues to expect to deliver double-digit organic sales growth, with disciplined pricing for inflation, while aiming for a stable level of gross profit compared to last year.

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