JDE Peet’s has reported an increase in sales and gross profit in its half-year financial report.
“In the first half of 2023, we delivered resilient financial performance in a category that is globally adjusting in the aftermath of the pandemic, and coping with persistent inflation,” says JDE Peet’s CEO Fabien Simon. “Against this backdrop and despite an industry volume decline in Europe, we delivered mid-single-digit top-line growth, driven by our premium product portfolio, E-commerce acceleration and strong performance in the US and in emerging markets.”
Organic sales increased by 3.5 per cent in the first six months of 2023, compared to the same time period last year. The result was driven by a 6.8 per cent increase in price and volume/mix of -3.3 per cent.
“We continue to be guided by our renewed strategic framework to become more global, more digital and more sustainable,” says Simon. “We are now very pleased to witness the in-market outperformance of JDE Peet’s globally from the disciplined execution of our strategic priorities.”
Organic gross profit rose 0.9 per cent in the same time frame, while adjusted EBIT decreased 3 per cent to US$639 million.
Free cash flow was US$15.4 million in the first half of 2023, which the company says is a decrease to the year prior due to the normalisation of working capital as well as higher capital expenditures.
“The tangible progress of our transformation – brand health, team engagement, gross profit and sustainability, just to name a few – is positioning us well to deliver sustained shareholder returns and societal value,” says Simon.
JDE Peet’s expects the business environment to remain volatile and vulnerable for the remainder of 2023.
Both Simon and CFO Scott Gray will host a conference call for analysts and institutional investors in August to discuss the results.
For the full JDE Peet’s half-year report, click here.