L'OR Owner JDE Peet's Posts H1 Profit Ahead Of Expectations
JDE Peet's reported on Wednesday better-than-expected operating profit for the first half of 2021, as growth in sales of coffee for home consumption offset an uneven restart for coffee shops due to the coronavirus pandemic.
Adjusted operating profit (EBIT) fell 1% to €636 million from the same period a year earlier which the company said was due in part to marketing costs and unfavourable exchange rates.
But revenue inched up 0.5% to €3.25 billion with sales for at-home consumption, usually coffee purchased at grocery stores, climbing 4.9% on a like-for-like basis.
Analysts had seen EBIT at €610 million and revenue at €3.28 billion, according to a company compiled poll.
The company, which owns a range of coffee and tea brands including Pickwick, Senseo, Tassimo, TiOra and L'OR, repeated a March forecast for organic sales growth of 3% to 5% for the full year and a "single-digit" increase in adjusted EBIT.
CEO Fabien Simon said that inflation in both packaging and rising green coffee costs have been factored into the company's plans.
"We continue to focus on what we can control, including having the right sourcing, the right hedging plan in place ... to protect our profitability and competitive market positions," he told reporters on a call.
Its shares are down 23% so far in 2021 and closed at €28.33 on Tuesday.
That compares with its listing price of €31.50 on the Amsterdam Stock Exchange in May 2020, at the time one of the largest initial public offerings to take place amid the COVID-19 crisis..
JDE is controlled by JAB Holding Company, the investment vehicle of Germany's Reimann family.