JDE Peet’s, the owner of coffee brands such as Douwe Egberts and Kenco, saw a rise in organic operating profit during 2023 against a decline forecast by analysts, with the group saying it expected growth to continue this year.
The group’s EBIT figure hit €1.13bn, down 8.1% on a reported basis but up 1.1% organically (+6% when excluding Russia). Analysts had been predicting an organic decline of 1.8% following a 9.3% fall in 2022.
Organic sales were up 3.9% after accelerating to 4.3% in the second half when the business saw “positive volume/mix momentum”.
For 2024, the group expects organic sales growth to come in at the lower end of its medium-term guidance range of 3% and 5%.
“We concluded 2023 with a very strong second semester, marked by an acceleration of JDE Peet’s organic top line and adjusted EBIT growth,” said CEO Fabien Simon.
“We are back to our long-term profitability algorithm, excluding Russia’s performance. While the Coffee industry had been confronted with compounding disruptions over the last 3 years, our 2023 performance is the result of the agility and disciplined execution of the transformation we went through since 2021, to become a more global, more digital, and more sustainable company.
“We are rediscovering the power of our brands. While we stepped up investments, execution and innovation, we have brought back relevance for our consumers and customers. As a result, we have gained market shares globally in 2023 across the premium coffee categories of Single-Serve, Instant and Beans.”
