Jul 30, 2025 (MarketLine via COMTEX) --
aEURoeWe are very pleased with our business and financial results in the first half of 2025,aEUR CEO Rafa Oliveira said.
JDE PeetaEUR(TM)s has lifted its forecast for annual underlying operating profit, which the coffee maker no longer expects to decline.
The Dutch coffee major, which manufactures brands like Jacobs, L'Or and Tassimo, expects "at least stable adjusted EBIT on an organic basis" this year, an improvement from the "low-single digit decline" it had given in guidance in February.
JDE Peet's also now expects its annual organic sales growth rate to sit in the "high-teens", an increase from its previous "high single-digit" guidance.
In the period ended 30 June, the company saw sales grow 22.5% organically and 19.8% on a reported basis to ae5bn (ae5.76bn).
JDE Peet's pointed to a 21.5% impact from price, with "volume/mix" up 1%.
Gross profit was down 8.7% on a reported basis and 8.3% organically to ae1.5bn. Operating profit slid 40.2% in the six months to ae402m.
Nevertheless, organic adjusted EBIT grew 2% to ae709m.
Rafa Oliveira, CEO of JDE PeetaEUR(TM)s, said: "We are very pleased with our business and financial results in the first half of 2025.
aEURoeOur 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.aEUR
The business said it was continuing to put a number of measures in place to combat the hike in green coffee prices, "including productivity and efficiency initiatives, passing on only what is unavoidable while maintaining affordability for its customers".
Oliveira, who joined JDE Peet's in November, added: aEURoeGiven 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 aEUR" we are confident in raising our full-year outlook for top-line and adjusted EBIT."
Earlier this month, the hot-drinks group revealed that it was aiming to aEURoesimplifyaEUR its product portfolio with a focus on ten brands including LaEUR(TM)Or and Jacobs.
The business is looking to achieve ae500m in savings in its cost of goods sold and SG&A expenses.
The move is part of JDE Peet's new strategy, called Reignite the Amazing, which Oliveira outlined at the company's investor day.
It aims to extract half the targeted savings by the end of 2027.
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