JDE Peet’s provides an update on its strategic roadmap and shares preliminary results for FY 22 at its strategic update meeting
January 24 2023 - 8:03AM
JDE Peet’s provides an update on its strategic roadmap and shares
preliminary results for FY 22 at its strategic update meeting
PRESS RELEASEAmsterdam, 24 January 2023Key
Highlights
- JDE Peet’s has made
significant progress
on its growth
and
purpose-led
strategy that was introduced in
March 2021,
and which supported
a strong set of
quality results since
the company entered the public
market
- The company
has successfully accelerated
growth in the US and in emerging markets, while
strengthening capabilities and competitiveness in Digital
Commerce and
Single-Serve
appliances
- JDE Peet’s’ ESG
performance and ambitions
substantially increased in 2022. The company has
defined the roadmap of initiatives that
will enable a new commitment to
net-zero, and
built an
integrated new carbon accounting
platform to track and
accelerate the delivery of its
ESG objectives
- The company
announced the
launch of a
new,
fully compostable
coffee capsule in
2023, which allows for
an uncompromising high-quality
in-cup experience
- JDE Peet’s
confirmed
FY 22 results
to be in line with its
outlook,
provided its
outlook for FY 23 and
reiterated its medium-
to long-term targets
JDE Peet’s (EURONEXT: JDEP), the world’s leading pure-play
coffee and tea company by revenue, is hosting its Strategic Update
Meeting for institutional investors and analysts in Amsterdam
today. During this event, the company provided, among other things,
an update on its achievements and progress versus its strategic
roadmap, a selection of preliminary financial results for FY 22 as
well as its outlook for 2023.
“I am very pleased with the progress we have made since we
introduced our updated strategy two years ago,” said Fabien Simon,
CEO of JDE Peet’s. “In spite of the challenging macro-economic
environment, we are delivering on our commitments to build a
stronger, more productive, and more inclusive enterprise. We kept
high-quality standards for our consumers and customers,
meaningfully reinvested in core assets, rebuilt employee pride and
engagement, transformed from a laggard to a leader in ESG, while
resuming cost competitiveness and achieving our financial
commitments. Strengthening our fundamentals, our brands and our
innovation capabilities elevates our growth trajectory and our
ability to create a sustaining long-term shareholder return and
societal value.”
Launch of a
new, compostable
coffee capsule to
accelerate the
sustainability agendaThe company
will launch a fully compostable capsule in 2023, which will
contribute to a circular economy. This new-to-the-world technology
allows for a high-quality in-cup experience that was not achievable
in existing compostable alternatives to date. This innovation will
be introduced in selected markets throughout 2023 under L’OR, the
global leading grocery brand in espresso capsules.
ESG performance & ambitions substantially increased
in 2022 and a company-wide carbon accounting system has
been implemented to
track and support a
net-zero futureIn line with the company’s
purpose to unleash the possibilities of coffee and tea to create a
better future, JDE Peet’s has made significant progress on its
sustainability agenda over the last two years. In addition to the
reduction of its scope 1 & 2 green-house-gases by 17% since
2020, one of the key achievements in 2022 was the increase in
responsibly sourced coffee from 30% in 2021 to 77%. In 2023, JDE
Peet’s will submit its stronger and new SBTi ambition to
net-zero.
Preliminary FY 22
financial
results1At the
occasion of its Strategic Update Meeting, JDE Peet’s confirms its
2022 outlook and shares the following preliminary, unaudited
results related to FY 22:
- Sales increased by 16.4%, driven by organic growth of
11.3%
- Gross profit increased by 3.3%
- SG&A increased by 10.6%, driven by working-media and other
growth-related investments
- Adj. EBIT decreased by 5.9%, and organically by -9.3%, as
SG&A increased
- Underlying EPS increased to EUR 1.91
- Free cash flow of more than EUR 1.3 bn with a net leverage of
2.65x
The company will publish its FY 22 financial statements as
scheduled on 22 February 2023, which may slightly deviate from the
preliminary results set out in this release.
Outlook FY 2023The company shared the following
outlook for FY 23:
- Organic sales growth at the high end of its medium-term range
of 3 – 5%
- Low single-digit organic adjusted EBIT growth, with a moderate
increase in SG&A
- A stable dividend
Medium- to
Long-Term Targets
reiteratedFor the medium- to long-term, JDE Peet's
continues to target organic sales growth of 3 to 5% and mid-single
digit organic adjusted EBIT growth, a free cash flow conversion of
approximately 70% and stable to increasing dividends over time.
Additional informationThe
presentation slides of the event can be found here and a video
replay of the event, including synchronised slides, will be made
available on the same webpage the next day.
1This press release contains certain non-IFRS financial measures
and ratios, which are not recognised measures of financial
performance or liquidity under IFRS. For a reconciliation of these
non-IFRS financial measures to the most directly comparable IFRS
financial measures, see page 7 of the H1 22 Earnings Release.
Organic sales and organic adjusted EBIT are adjusted for new
business ventures.
# # #
Forward-looking StatementsThese materials
contain forward-looking statements as defined in the United States
Private Securities Litigation Reform Act of 1995 concerning the
financial condition, results of operations and businesses of the
Group. These forward-looking statements and other statements
contained in these materials regarding matters that are not
historical facts and involve predictions. No assurance can be given
that such future results will be achieved. Actual events or results
may differ materially as a result of risks and uncertainties facing
the Group. Such risks and uncertainties could cause actual results
to vary materially from the future results indicated, expressed or
implied in such forward-looking statements. There are a number of
factors that could affect the Group’s future operations and could
cause those results to differ materially from those expressed in
the forward-looking statements including (without limitation): (a)
competitive pressures and changes in consumer trends and
preferences as well as consumer perceptions of its brands; (b)
fluctuations in the cost of green coffee, including premium Arabica
coffee beans, tea or other commodities, and its ability to secure
an adequate supply of quality or sustainable coffee and tea; (c)
global and regional economic and financial conditions, as well as
political and business conditions or other developments; (d)
interruption in the Group's manufacturing and distribution
facilities; (e) its ability to successfully innovate, develop and
launch new products and product extensions and on effectively
marketing its existing products; (f) actual or alleged
non-compliance with applicable laws or regulations and any legal
claims or government investigations in respect of the Group's
businesses; (g) difficulties associated with successfully
completing acquisitions and integrating acquired businesses; (h)
the loss of senior management and other key personnel; and (i)
changes in applicable environmental laws or regulations. The
forward-looking statements contained in these materials speak only
as of the date of these materials. The Group is not under any
obligation to (and expressly disclaim any such obligation to)
revise or update any forward-looking statements to reflect events
or circumstances after the date of these materials or to reflect
the occurrence of unanticipated events. The Group cannot give any
assurance that forward-looking statements will prove correct and
investors are cautioned not to place undue reliance on any
forward-looking statements. Further details of potential risks and
uncertainties affecting the Group are described in the Company’s
public filings with the Netherlands Authority for the Financial
Markets (Stichting Autoriteit Financiële Markten) and other
disclosures.
Market Abuse RegulationThis press release
contains information within the meaning of Article 7(1) of the EU
Market Abuse Regulation.
Enquiries
Media Khaled Rabbani+31 20 558
1753Media@JDEPeets.comInvestors &
AnalystsRobin Jansen+31 20 55 81212IR@JDEPeets.com
About JDE Peet’s
JDE Peet’s is the world's leading pure-play coffee
and tea company, serving approximately 4,500 cups of coffee or tea
per second. JDE Peet's unleashes the possibilities of coffee and
tea in more than 100 markets, with a portfolio of over 50 brands
including L’OR, Peet’s, Jacobs, Senseo, Tassimo, Douwe Egberts,
OldTown, Super, Pickwick and Moccona. In 2021, JDE Peet’s generated
total sales of EUR 7 billion and employed a global workforce of
more than 19,000 employees. Read more about our journey towards a
coffee and tea for every cup at www.jdepeets.com.
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