JDE Peet’s, the global coffee and tea giant, reported robust financial performance for 2024, surpassing its mid-year guidance and announcing enhanced returns to shareholders through a dividend hike and a multi-year share buyback program.
The company achieved organic sales growth of 5.3%, driven by strategic pricing and innovation, with reported sales rising 7.9% to €8.8 billion. Adjusted earnings before interest and taxes (EBIT) climbed 10.4% organically to €1.3 billion, while free cash flow reached €1.04 billion. Net leverage remained stable at 2.7x.
Shareholder Returns
JDE Peet’s proposed a 4.3% dividend increase to €0.73 per share for 2024, payable in two instalments in July 2025 and January 2026. Additionally, the company plans to launch a €1 billion share buyback program, with €250 million allocated for 2025, citing confidence in its long-term cash generation.
CEO Highlights Strategy Amid Inflation Pressures
CEO Rafa Oliveira credited the results to disciplined pricing and innovation, despite “unprecedented” green coffee inflation, which saw costs more than double due to supply chain disruptions and adverse weather. “Our focus on consumer relevance allowed us to launch products like L’OR Iced Coffee and Peet’s Ultra Coffee Concentrate, which strengthened our market position,” he said.
Oliveira outlined five priorities for 2025, including cost efficiencies, selective capital allocation, and fostering organic growth. Details will be shared at the Capital Markets Day on 1 July 2025.
Segment Performance
- Europe: Organic sales edged up 0.5%, with strong showings in the UK and Nordics offsetting retailer pricing disputes.
- LARMEA: A standout 21.2% organic sales surge, fueled by Brazil’s Pilão and Jacobs brands and the integration of Maratá.
- Peet’s: 5.7% organic growth, led by U.S. in-home sales and double-digit growth in China.
- APAC: Mixed results, with 1.5% organic sales growth despite soft demand in away-from-home segments.
Leadership Transition
CFO Scott Gray will step down in May 2025, succeeded by Yang Xu, former CFO of Straumann Group. Xu brings over two decades of experience, including roles at Kraft Heinz.
Sustainability Progress
The company reduced Scope 1 and 2 emissions by 30% since 2020 and sourced 92.4% of its coffee responsibly. Nearly 80% of packaging is now reusable, recyclable, or compostable.
2025 Outlook
JDE Peet’s anticipates high single-digit organic sales growth but expects a low single-digit decline in adjusted EBIT, citing persistent cost pressures. Free cash flow is projected at €1 billion, weighted toward the second half.
About JDE Peet’s
The world’s largest pure-play coffee and tea company, JDE Peet’s serves 4,400 cups per second across 100 markets. Its portfolio includes L’OR, Peet’s, Jacobs, and Douwe Egberts.