The half-year financial report of international coffee conglomerate JDE Peet’s has been headlined by a 22.5 per cent year-on-year increase in organic sales and 19.8 per cent increase in reported sales.
Organic adjusted gross profit has also risen 2.2 per cent, however, reported gross profit has fallen 8.7 per cent.
Total reported sales increased 19.8 per cent to €5.045 billion (US$5.77 billion), with profit for the period increasing by 17.2 per cent to €422 million (US$482.64 million). Underlying profit – excluding all adjusting items net of tax – increased by 75.4 per cent to €649 million (US$742.27 million).
The overall positive results have come amid a long-term plan to simplify the company’s operating model, and just one month after it launched its new strategy ‘Reignite the Amazing’.
Included in the simplification of operations was the divestment from its tea business in Turkey, Efor Holding, the discontinuation of the rollout of the L’OR Barista machine in the United States (US), the transfer of the L’OR capsules business to Peet’s, and the intention to close its Banbury factory in the United Kingdom.
“We made solid progress on the five key priorities we set at the start of the year to simplify our operating model and optimise resource allocation,” says JDE Peet’s CEO Rafa Oliveira.
“We are very pleased with our business and financial results in the first half of 2025. Our performance was broad-based and strong across top-line, profitability, and cash-flow, despite operating in a challenging environment that continues to be characterised by persistently high green coffee prices.”
Oliveira also praised the launch of new products in JDE Peet’s portfolio since the start of 2025.
“In the first half of the year, we launched a range of new products to address evolving consumer needs and unlock new occasions, including Peet’s unique Popping Pearls, L’OR Coconut Iced Espresso, Jacobs Dubai Chocolate, and Moccona Liquid Espresso sachets – each designed to expand our portfolio and enhance relevance across markets and formats,” he says.
For the remainder of 2025, JDE Peet’s is forecasting an increase in organic sales growth into the high teens and an increase to at least stable adjusted EBIT on an organic basis, as well as leaving its projection of free cash flow of around EUR 1 billion unchanged.
Factoring in the positive first half results and second half projections with stabilising green bean prices, Oliveira says JDE Peet’s is now raising its 2025 outlook.
“Given our strong performance in the first half of the year and our expectations for the second half – including the dynamics related to volatile green coffee prices and the necessary measures these require – we are confident in raising our full-year outlook for top-line and adjusted EBIT,” he says.
On 3 March 2025, JDE Peet’s commenced its share buyback program to return up to €250 million (US$285.93 million) to shareholders in 2025. At the time of the production of the 2025 half-year financial report (25 July), 38 per cent of the program had been completed.
The company says it is on track to complete the buyback by the end of the calendar year.
