International coffee company JDE Peet’s has released an interim update on its year-to-date business and financial performance.
Key to the company’s business performance update is the announcement it is preparing to take additional measures to combat the rising price of green coffee, including by potentially increasing the price of its products.
It reports green coffee prices are, on average, 28 per cent higher in the first four months of 2025 than they were in 2024.
Despite the increase in green coffee prices, JDE Peet’s has reported its financial performance in Q1 2025 as “in line with company expectations”, with the recently announced United States (US) trade tariffs not expected to materially impact financial performance.
As part of the company’s efforts to “optimise resource allocation and simplify operating models”, JDE Peet’s has confirmed it has divested its tea business in Turkey and discontinued the rollout of its L’Or Barista machines in the US.
The sale of its Turkish tea business has been completed for an undisclosed amount to Efor Holding. It generated roughly EUR 60 million in annual sales with a negative contribution to JDE Peet’s adjusted EBIT.
Management of the L’Or capsules business in the US has been transferred to Peet’s to better capture the “significant potential” of the US coffee market.
It has also completed 28 per cent of its EUR 250 million 2025 share buyback as of 2 May.
JDE Peet’s is also set to undergo some level of executive change with its new CFO, Yang Xu, set to commence the role on 19 May 2025.
Xu’s appointment to replace the outgoing Scott Gray was announced in February 2025, following Gray’s resignation from the role in late January.
He is the current CFO of Straymann and a former member of the executive committee at Kraft Heinz.
Rob de Groot is also expected to be appointed as a non-executive member of the board, subject to approval by the 2025 Annual General Meeting of Shareholders, which is scheduled to take place on 19 June 2025.
De Groot is the Co-Founder, Owner, and Director of TOORG Holdco B.V., which currently owns 25.8 per cent of share capital in CRU Kafe, an early stage certified B Corporation focused on organic and Fairtrade coffee sold in the United Kingdom.
He has also held a variety of leadership positions at Reckitt Benckiser Group plc all over the world for more than three decades.
JDE Peet’s says more details of the company’s strategy, transformation, and simplification initiatives, as well as other value creation opportunities, will be shared at its Capital Markets Day on 1 July 2025.
