Coffee Service

JDE Peet's improves sales, earnings as COVID subsides

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February 24, 2022

JDE Peet's N.V., a Netherlands based company owned by JAB Holdings that owns Peet's Coffee, Douwe Egberts, Jacobs and other brands, improved sales and earnings in 2021 as the impact of the coronavirus lessened, according to an earnings report. The ongoing pandemic and related restrictions continued to have an impact on the global economic and market conditions and continued to impact supply chain and commodity prices.

Total sales increased 5.3% from 6.65 billion EUR ($7.51 billion) in 2020 to 7 billion EUR ($7.9 billion) in 2021 on a reported basis. The in-home business continued to deliver strong organic sales growth of 5% while sales in away-from-home increased by 11.5% as the positive effects of (partial) reopenings in most regions more than offset the negative effects of new waves of lockdown measures, most notably in the second half of the year.

• Profit rose from 367 million EUR ($414.27 million) to 762 million EUR ($860.16 million).
• Basic earnings per share rose from 0.80 EUR (90 cents) to 1.53 EUR ($1.73) while diluted EPS rose from 0.70 EUR (79 cents) to 1.51 EUR ($1.70).

Shares traded at $33.62 Wednesday against a 52-week range of $27-$40.59.

"We set out our new strategic framework, re-invested in our powerful portfolio, and reinforced our operational discipline, including taking the lead on pricing in the majority of our markets," Fabien Simon, CEO, said in the press release. "As a result, our organic sales growth accelerated, the absolute margin per cup increased, so did the free cash flow generation."

JDE Peet's expects the business environment in 2022 to remain volatile as input cost inflation and some effects of COVID-19 might persist. Within this context, the company expects to deliver double-digit organic sales growth, with disciplined pricing for inflation, while aiming for a stable level of gross profit compared to last year.

For an update on how the coronavirus pandemic is affecting convenience services, click here.