JDE Peet’s reports full-year results 2022
Exceeded guidance, and executing the company's growth
strategy with discipline
PRESS RELEASEAmsterdam, 22 February 2023
Key items1
- Total sales up +16.4% to EUR 8.2
billion, of which +11.3% organically, driven by price
- Gross profit up +3.3% supported by
efficiencies, disciplined pricing and revenue management
- SG&A increased by 10.6%, driven
by working media and other growth-related investments
- Adjusted EBIT down -5.9%, or -9.3%
organically, to EUR 1,227 million, as SG&A increased
- Underlying EPS up +6.3% to EUR
1.91
- Free cash flow of EUR 1,358 million
while leverage reduced to 2.65x
- Significant progress made on ESG,
recognised by external ESG rating agencies
- Proposal to pay a cash dividend of
EUR 0.70 per share in two equal instalments
A message from Fabien Simon, CEO of JDE
Peet’s
“I am very pleased with the way JDE Peet's navigated 2022, a
year impacted by the ongoing effects of unprecedented inflation,
decreasing consumer confidence, and the tragic war in Ukraine.
Last year required us to make difficult but courageous choices
on cost competitiveness and pricing leadership. We acted as a true
category leader and were able to meet or exceed our financial
commitments, without compromising on investments, nor on quality of
our products and services.
In 2022, we delivered double-digit sales growth, increased our
absolute gross profit, delivered strong free cash flow and higher
EPS, while increasing investments to support our long-term growth
ambition in areas such as marketing, innovation, digital commerce,
emerging market capabilities and sustainability. Consequently, we
are emerging stronger for 2023, with an elevated growth portfolio,
a competitive market share position, a well invested business and a
more productive and very engaged enterprise.
These many results and achievements were made possible by the
resilience, resolution and agility of our people, who worked
incredibly hard, together with every partner in our ecosystem, to
manage these turbulent times, while simultaneously making continued
strong progress on our growth- and purpose-led strategy.
Although many of the conditions and challenges we faced in 2022
will to some extent persist in 2023, we believe that our pure-play
focus, strong fundamentals, brands and innovation capabilities
position us well to continue to create attractive shareholder
returns as well as societal value.”
ESG: significant progress made and ambition level
raised
JDE Peet's' sustainability strategy is built on three pillars:
Responsible Sourcing, fostering thriving
agricultural supply chains; Minimising
Footprint, to reduce the company's environmental
impact; and Connecting People, to engage the
company's employees and its communities.
Through its responsible sourcing and supplier engagement
programme, JDE Peet's is committed to a sustainable supply of
coffee & tea from various origins that supports farming
communities’ vision of prosperity and contributes to healthy
ecosystems. During the year, the company made strong progress
towards its commitment of 100% responsibly sourced green coffee by
2025, reaching 77%, a significant improvement compared to the 30%
reported in 2021. The primary driver for the increase resulted from
the verification efforts of Enveritas, a non-profit organisation
that verifies coffee purchases against sustainable coffee
standards. JDE Peet's also achieved 100% responsibly sourced palm
oil and partnered with the Rainforest Alliance in Turkey to deploy
a programme to drive 100% responsible sourcing of its Ofçay teas by
2025. As such, the company is well on track to have 100% of its
coffee, tea and palm oil responsibly sourced by 2025.
JDE Peet's also continued to make good progress in reducing its
footprint. In 2022, the company reduced its scope 1 & 2
emissions by 15% and scope 3 emissions by 1% versus the 2020
baseline. During the year, JDE Peet's also defined a roadmap of
initiatives that will enable the company to submit an even stronger
and new SBTi ambition in 2023 to reach net-zero. In addition, 78%
of the company's packaging components are now designed to be
reusable, recyclable, or compostable. And by the end of the year,
22 of its manufacturing sites were zero waste-to-landfill. JDE
Peet's also further increased the percentage of renewable energy
used at its sites in Brazil, Europe and Pacific.
In 2022, the company also conducted a gender pay equity
analysis, which showed that, within JDE Peet's, the difference in
the pay of males and females is less than 1%, which is well under
the future EU directive’s threshold of 5%.
Medium- to Long-Term
Targets
For 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.
Outlook 2023
JDE Peet's aims to achieve the following in
2023:
- 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
Dividend
JDE Peet's' Board proposes to pay a dividend of EUR 0.70 per
share in cash related to FY 22. The dividend will be paid in two
instalments of EUR 0.35 each. The first payment date will be on
Friday, 14 July 2023, with the ex-dividend date on Monday, 10 July
2023 and the record date on Tuesday, 11 July 2023. The second
payment date will be on Friday, 26 January, 2024, with the
ex-dividend date on Monday, 22 January 2024 and the record date on
Tuesday, 23 January 2024. The dividend proposal is subject to
approval by the Annual General Meeting of Shareholders to be held
on Thursday, 25 May 2023.
FINANCIAL REVIEW FULL-YEAR 2022
in EUR m (unless otherwise stated)
|
FY 2022 |
FY 2021 |
Organic change |
Reported change |
Sales |
8,151 |
7,001 |
11.3 % |
16.4 % |
Adjusted EBIT |
1,227 |
1,304 |
-9.3 % |
-5.9 % |
Underlying profit for the period |
936 |
899 |
- |
4.1% |
Underlying EPS (EUR) 1, 2 |
1.91 |
1.79 |
- |
6.3% |
Reported basic EPS (EUR) |
1.57 |
1.53 |
- |
2.6% |
1
Underlying earnings (per share) exclude all adjusting items (net of
tax) |
|
|
2
Based on 485,235,677 shares (excluding treasury shares) outstanding
(FY 21: 501,951,089) on 31 December 2022 |
|
Total reported sales increased by 16.4% to EUR 8,151 million.
Excluding a positive effect of 4.7% related to foreign exchange and
0.3% related to scope and other changes, total sales increased by
11.3% on an organic basis. Organic sales growth reflects a price
effect of 15.8% and a volume/mix effect of -4.4%. In-Home sales
increased by 8.9% and sales in Away-from-Home increased by
22.3%.
Total adjusted EBIT decreased by -5.9% to EUR 1,227 million on a
reported basis. Excluding the effects of foreign exchange and scope
and other changes, the adjusted EBIT decreased organically by -9.3%
as SG&A increased by 10.6%, driven by investments in marketing,
innovations and other strategic growth capabilities.
Underlying profit - excluding all adjusting items net of tax -
increased by 4.1% to EUR 936 million. It includes an underlying tax
rate of 23.6% and was supported by lower interest expenses, mainly
as a result of a lower average cost of debt, and a reduction of
other finance expenses.
Net leverage improved to 2.65x net debt to adjusted EBITDA.
Our liquidity position remains strong, with total liquidity of
EUR 2.4 billion consisting of a cash position of EUR 0.9 billion
and available committed RCF facilities of EUR 1.5 billion.
For the full and original version of the press release click
here
CONFERENCE CALL & AUDIO WEBCAST
Fabien Simon (CEO) and Scott Gray (CFO) will host a conference
call for analysts and institutional investors at 10:30 AM CET today
to discuss the full-year 2022 results. A live and on-demand audio
webcast of the conference call will be available via JDE Peet’s’
Investor Relations website.
This 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 this press release.
ENQUIRIES
MediaKhaled RabbaniMedia@JDEPeets.com+31 20 558
1753
Investors & AnalystsRobin
JansenIR@JDEPeets.com+31 6 159 44 569
About JDE Peet’sJDE Peet’s is the world's
leading pure-play coffee and tea company, serving approximately
4,200 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
2022, JDE Peet’s generated total sales of EUR 8.2 billion and
employed a global workforce of more than 20,000 employees. Read
more about our journey towards a coffee and tea for every cup at
www.jdepeets.com.
IMPORTANT INFORMATION
Presentation
The condensed consolidated unaudited financial statements of JDE
Peet’s N.V. (the "Company") and its consolidated subsidiaries (the
"Group") are prepared in accordance with International Financial
Reporting Standards as adopted by the European Union ("IFRS"). In
preparing the financial information in these materials, except as
otherwise described, the same accounting principles are applied as
in the consolidated financial statements of the Group as of, and
for, the year ended 31 December 2021 and the related notes thereto.
All figures in these materials are unaudited. In preparing the
financial information included in these materials, most numerical
figures are presented in millions of euro. Certain figures in these
materials, including financial data, have been rounded. In tables,
negative amounts are shown in parentheses. Otherwise, negative
amounts are shown by "-" or "negative" before the amount.
Forward-looking Statements
These 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 and Industry Data
All references to industry forecasts, industry statistics,
market data and market share in these materials comprise estimates
compiled by analysts, competitors, industry professionals and
organisations, of publicly available information or of the Group's
own assessment of its markets and sales. Rankings are based on
revenue, unless otherwise stated.
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