JDE Peet’s posts strong 2021 sales but warns of “unprecedented” inflation

Rising costs and the ongoing impact of Covid-19 adversely impacted profits for JDE’s consumer packaged goods (CPG) businesses – but out-of-homes sales, including its Peet’s Coffee business, continued to recover as trading restrictions eased

JDE Peet's coffee capsule production facility in Andrézieux Bouthéon, France | Photo credit: JDE Peet's 



Reporting its full-year results for 2021, JDE Peet’s posted total sales of €7bn ($8bn), 5.2% higher than the €6.6bn ($7.5bn) earned in 2020.
 
Sales at JDE’s European consumer packaged goods (CPG) business rose 2.6% over the period to reach €3.6bn, with ‘particularly strong contributions from the German, French, Polish and Danish markets. However, adjusted EBIT fell 0.7% to €1.1bn ($1.5bn) as operational leverages and efficiencies were partially reinvested in advertising and ‘other growth opportunities.’
 
The JAB Holdings-backed company also reported the ongoing recovery of out-of-home sales, which increased 15.4% to reach €723m ($984m) over the period. EBIT earnings also increased significantly to €90m compared to €3m in 2020.
 
In the US, JDE said a gradual shift back to the away-from-home environment had benefitted Peet’s Coffee retail stores, which achieved 7.8% sales growth to €903m and EBIT of €118m ($160m). The US coffee chain’s CPG business also delivered ‘sold single-digit’ sales growth, JDE added.  
 
JDE’s APAC CPG business, however, performed less favourably over the period, with sales declining 2.2% to €684m. The company said that sales performance in Australia and South East Asian markets had fallen due to stricter lockdown measures. China, however, delivered ‘strong double-digit performance.’
 
“I am very pleased with JDE Peet’s' performance in 2021. We delivered on all our commitments, in a high-quality way, in another year of unexpected global disruptions,” said Fabian Simon, CEO, JDE Peet’s.
 
“This year, we became a nimbler global coffee & tea pure player our brands emerged stronger. This gives me confidence that JDE Peet’s can successfully navigate an unprecedented year of inflation in 2022.”
 
JDE also highlighted its efforts to improve coffee farmer income and reduce its environmental impact.
 
The company said its Common Grounds programme had increased the number of smallholder farmers in its scope to more than 470,000 since 2015 and that it was on track to achieve 100% ‘responsibly sourced’ coffee, tea and palm oil by 2025.
 
Progress was also made on reducing greenhouse gas emissions, with JDE reaffirming a target to reduce GHG emissions for scope 1 & 2 by 25% and for scope 3 by 12.5% by 2030. Emissions across scope 1, 2 and 3 reduced by 5% in 2021, the company added.
 
Looking to the year ahead, JDE cautioned that the business environment looked likely to ‘remain volatile’ in 2022 due to the persistent effects of cost inflation and Covid-19. Nevertheless, the company forecast double digit organic sales growth for the coming year.
 
JDE Peet’s was formed in 2019 after JAB Holding Company merged its Jacobs Douwe Egberts (JDE) and Peet’s Coffee businesses and launched a successful IPO in late 2020.
 
The Netherlands-headquartered company produces and distributes major coffee brands, including L’or, Jacobs, Douwe Egberts Senseo and Tassimo.
Registered in England. Company No. 8736608
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