JDE Peet’s has reported its full-year results for 2023, marking the return to the long-term profitability algorithm.
The company stated organic sales growth of 3.9 per cent was driven by an increase of 2.1 per cent in volume/mix and 1.8 per cent in price. Same store sales and ticket size were up in Peet’s coffee retail stores, and while the In-Home category in the US was softer, Peet’s’ CPG business held market shares.
“We concluded 2023 with a very strong second semester, marked by an acceleration of JDE Peet’s organic top line and adjusted EBIT growth. While the coffee industry had been confronted with compounding disruptions over the last three years, our 2023 performance is the result of the agility and disciplined execution of the transformation we went through since 2021, to become a more global, more digital, and more sustainable company,” JDE Peet’s CEO Fabien Simon.
“Strengthening our fundamentals, our brands and our innovation capabilities is elevating our premium growth trajectory and brings confidence in our ability to create sustaining long-term shareholder returns and societal value.”
Reported sales increased by 1.1 per cent to EU$1153 million (about US$1246 million), which included a foreign exchange effect of -2.9 per cent. Adjusted EBIT decreased organically by 1.0 per cent to EU$141 million (about US$153 million), including higher investments in marketing spend.
During the year, JDE Peet’s made strong progress on its goal towards 100 per cent responsibly sourced green coffee by 2025, reaching 83.8 per cent. By year end, it had a portfolio of 63 active projects, through which it has reached more than 108,000 additional smallholder farmers, bringing the total number of smallholder farmers it has reached since 2015 to 700,900.
JDE Peet’s expects organic sales growth at the lower end of the medium-term range of 3 to 5 per cent in 2024.
