The new strategy of JDE Peet’s, the coffee group over Douwe Egberts, is paying off. The coffee company performed revenue growth of 16.4% last year, in line with expectations.
“I am very pleased with the progress we have made since we introduced our adjusted strategy two years ago,” Fabien Simon, CEO of JDE Peet’s, told investors and analysts in Amsterdam yesterday. Indeed, it looks like the coffee holding company performed better than analysts had expected.
In its preliminary annual results, JDE Peet’s reports revenue growth of 16.4%. Organically, sales rose 11.3%. Gross profit climbed 3.3%, but on an adjusted basis EBIT fell 5.9% due to higher selling and general administrative expenses. The company will announce its final results in February.
Chief executive Simon is especially pleased that growth has accelerated in the US and emerging markets, while the Pickwick tea and Senseo coffee producer is also stronger online and in the single-serve domain today. “Despite the challenging macroeconomic environment, we are delivering on our promises to build a stronger, more productive and inclusive business,” the CEO said.
In the medium and long term, JDE Peet’s is therefore maintaining its targets. Moreover, the group is said to have transformed itself “from a laggard to a leader” in sustainability. For instance, coffee brand L’Or is launching fully compostable coffee capsules for the first time this year.
