The JAB Holdings-backed company says it has navigated soaring global inflation by generating efficiencies and implementing ‘affordable price increases’, delivering sales of €3.9bn ($4bn) for the first half of 2022
JDE Peet’s had hailed navigating ‘unprecedented’ geopolitical disruption’ to deliver 15.7% organic sales growth to €3.9bn ($4bn) in the first half of 2022. Group profits excluding tax increased 17.3% to €523m ($530m).
The Netherland’s-headquartered coffee company said it had confronted mounting inflation by generating efficiencies that had enabled overall price increases to stay within one euro cent per cup.
However, many markets saw product costs rise significantly, including Brazil, where 45.6% organic revenue growth was driven by a 44% increase in price.
US-based coffee chain Peet’s, which operates around 270 stores across the US and China, delivered 12.9% revenue growth compared to the same period in 2021 driven by a 9.4% increase in prices.
In Europe, JDE consumer packaged goods (CPG) channel benefitted from the continued easing of Covid-19 trading restrictions to drive 5.3% revenue growth to €1.82bn. Germany, Poland and the Nordics recorded ‘notable strong performances’ the company said.
In Asia Pacific, CPG coffee sales increased 20.6% to reach €390m and were boosted by the acquisition of Australian specialty coffee roaster, Campos Coffee in June 2021. JDE also noted the strong performance of its OldTown, Moconna and Super coffee brands in Thailand and Malaysia but said fresh Covid-19 lockdowns had impeded out-of-home sales in some markets.
“Half-way through 2022, we delivered very well on our commitments, despite unprecedented economic and geopolitical disruptions, exacerbated by the tragic war in Ukraine. Our strong set of results is a testament to the resilient growth profile of JDE Peet’s, supported by powerful brands, leading market positions and talented teams around the world,” Fabien Simon, CEO of JDE Peet’s.
“We are successfully navigating through supply chain disruptions, pandemic effects and mounting inflation, while keeping course of our value creation agenda, centred around quality and inclusive revenue growth. E-commerce sales kept growing organically at a double-digit rate, as did revenue in the U. and in China in-home, while we are accelerating the store expansion there,” Simon added.
JDE Peet’s was formed in 2019 after JAB Holding Company merged its Jacobs Douwe Egberts (JDE) and Peet’s Coffee businesses. It launched a successful IPO in late 2020.
JDE Peet’s promotes that it sold approximately 4,500 cups of coffee or tea every second in 2020, generating total sales of €6.7bn ($7.8bn). The company says it is active in more than 100 developing coffee markets, where it is attempting to scale its portfolio of 50 coffee brands including L’OR, Peet’s, Jacobs, Tassimo and Douwe Egberts.
