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JDE Peet's N.V. Earnings Release 2024
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Earnings Release
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JDE Peets
PRESS RELEASE
Amsterdam, 26 February 2025
JDE Peet's reports full-year results 2024
JDE Peet's delivered strong 2024 results, exceeding elevated H1 guidance
Increases shareholder returns through higher dividend and multi-year share buyback plan
Key items¹
- Organic sales up +5.3%, driven by 4.5% price and 0.7% volume/mix; Reported sales up 7.9%
- Organic adjusted gross profit up +6.1%; Reported gross profit up +7.9%
- Organic adjusted EBIT up +10.4% to EUR 1.3 billion
- Free cash flow of EUR 1,044 million; Net leverage at 2.7x
- Proposal to increase cash dividend by 4.3% to EUR 0.73 per share
- Intention to launch multi-year share buyback programme of up to EUR 1 bn, with EUR 250 mln in 2025
A message from Rafa Oliveira, CEO of JDE Peet's
"We are very pleased with this strong set of broad-based results, especially considering the increased green coffee inflation. Innovation, driven by consumer relevance, lies at the heart of our strategy, enabling us to meet consumer preferences while enhancing the value of every cup. In 2024, we launched a range of new products to address evolving consumer needs, including the L'OR Iced Coffee, Peet's Ultra Coffee Concentrate in the U.S., OldTown's Hot & Cold premium instant mixes in Asia, and the roll-out of the first fully recyclable at-home paper refill pack for soluble coffee across 17 markets.
Looking ahead at 2025, we have set 5 key priorities. First, we will maintain strict pricing discipline to counter the unprecedented green coffee inflation. Second, we are identifying efficiencies to fund brand investments. Third, we will be highly selective and rigorous in our resource allocation and deployment of capital. Fourth, we are reinvigorating an organic growth mindset while increasing agility and fostering an ownership culture. Fifth, we will put increased emphasis on shareholder value creation as disciplined capital allocation and strong free cash flows will enable us to grow future returns to shareholders. More details and updates on our progress will be provided during our Capital Markets Day on July 1, 2025.
Our strong 2024 performance positions us well for 2025 and beyond, with stronger foundations and positive momentum. Therefore, we propose to increase the dividend by 4.3% and plan to initiate a multi-year share buyback cycle of up to EUR 1 billion, with up to EUR 250 million allocated for share buybacks in 2025."
¹ This press release contains Alternative Performance Measures (APMs), which are not recognised measures of financial performance under IFRS. For a reconciliation of these APMs to the most directly comparable IFRS financial measures, refer to Reconciliation of non-IFRS measures.
Peets
JACOBS
VNAS
TASSIMO
DOUWE EGIERTS
JDE Peets
Update on CFO transition
On 22 January 2025, JDE Peet's announced that Scott Gray, CFO, has decided to step down. In May, Scott will be succeeded by Mrs. Yang Xu, a French national of Chinese descent. Yang joins JDE Peet's from the Swiss-based Straumann Group where she currently serves as Chief Financial Officer. Yang, who has lived and worked in the U.S. and various European countries, brings more than 20 years of experience in finance, strategy, operational and commercial functions. Prior to Straumann Group, Yang was Senior Vice President, Head of Corporate Development and Global Treasurer and a member of the company's Executive Committee at Kraft Heinz.
Dividend 2024
JDE Peet's Board proposes to increase the 2024 dividend by 4.3% to EUR 0.73 per share in cash. The dividend will be paid in two instalments. The first payment, of EUR 0.37, will be made on Friday, 11 July 2025, with the ex-dividend date on Monday, 7 July 2025 and the record date on Tuesday, 8 July 2025. The second payment, of EUR 0.36, will be made on Friday, 23 January 2026, with the ex-dividend date on Monday, 19 January 2026 and the record date on Tuesday, 20 January 2026. The dividend proposal is subject to approval by the Annual General Meeting of Shareholders to be held on Thursday, 19 June 2025.
Initiation of a multi-year share buyback cycle
Given JDE Peet's strong confidence in its long-term value creation opportunities and strong free cash flow generating capabilities, the company intends to initiate a multi-year share buyback cycle of up to EUR 1 billion, with up to EUR 250 million for share buybacks in 2025. More information will be disclosed at the time the share buyback starts.
Green coffee inflation
Green coffee prices have surged to historic highs, driven by various factors including atypical weather patterns in key coffee-growing countries, multiple supply chain disruptions, and broader macroeconomic and geopolitical factors. As a result, green coffee prices have, on average, more than doubled, compared to a year ago, and are not expected to decline in the near term. To mitigate this impact, we will continue to be disciplined on pricing, while also implementing a range of productivity and efficiency measures to absorb as much of the cost inflation headwind as possible, passing on only what is unavoidable while maintaining affordability for our consumers. As a category leader, we remain committed to creating value across the entire supply chain—supporting coffee farmers in adopting sustainable practices while delivering consumers and retailers innovative, high-quality and enjoyable coffee products.
Outlook 2025
JDE Peet's expects the following for 2025:
- High single-digit organic sales growth
- Low single-digit decline in adjusted EBIT on an organic basis, with delivery second-half-weighted
- Free cash flow of around EUR 1 billion, with delivery second-half-weighted
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JOE REETS
FINANCIAL REVIEW FULL-YEAR 2024
in EUR m (unless otherwise stated)
| FY 2024 | FY 2023 | Organic change | Reported change | |
|---|---|---|---|---|
| Sales | 8,837 | 8,191 | 5.3% | 7.9% |
| Adjusted gross profit^{1} | 3,273 | 3,051 | 6.1% | 7.3% |
| Gross profit | 3,257 | 3,018 | 6.7% | 7.9% |
| Adjusted EBITDA^{1} | 1,587 | 1,426 | — | 11.3% |
| Adjusted EBIT^{1} | 1,277 | 1,128 | 10.4% | 13.2% |
| Operating profit | 1,056 | 685 | 52.4% | 54.2% |
| Underlying profit for the period^{1} | 729 | 734 | — | -0.7% |
| Profit for the period | 543 | 364 | — | 49.2% |
| Underlying EPS (EUR)^{1,2,3} | 1.50 | 1.51 | — | -0.7% |
| Basic EPS (EUR)^{2} | 1.15 | 0.76 | — | 51.3% |
1 Alternative Performance Measure. Refer to Reconciliation of non-IFRS measures
2 Based on the weighted average number of shares outstanding
3 Underlying earnings (per share) exclude adjusting items (net of tax)
Total reported sales increased by 7.9%. Excluding a 4.7% positive contribution from the consolidation of Maratá and Caribou and a -2.1% effect related to foreign exchange, total sales increased by 5.3% organically. Organic sales growth reflects a price effect of 4.5% and a volume/mix effect of 0.7%. All categories contributed to the organic sales growth with double-digit growth in Beans, high single-digit growth in Capsules and Instants, and mid-single-digit growth in Roast & Ground.
Adjusted EBIT increased organically by 10.4% with positive contribution from all four segments and driven by an organic increase of 6.1% in adjusted gross profit and disciplined cost control. A&P spend was slightly lower in the year, reflecting a high comparable base from the 2023 U.S. launch of L'OR Barista, which required less investments in its second year. In Europe, APAC and Peet's, A&P spend remained stable or increased year-over-year.
Profit for the period increased by 49.2%. Underlying profit - excluding all adjusting items net of tax - decreased by -0.7% to EUR 729 million. This performance was mainly driven by an unfavourable non-cash, non-tax deductible impact of EUR 154 million from a fair value change in the company's equity derivatives, due to the decrease in the company's share price in 2024. Excluding this fair value change, the underlying effective tax rate would have been around 25% and underlying profit would have been EUR 883 million, or 12.2% higher than in FY 23.
Net debt increased by EUR 439 million to EUR 4.3 billion on 31 December 2024, which was driven by the transaction considerations related to Maratá and Caribou. Supported by strong operational performance and EBITDA growth, a free cash flow of EUR 1,044 million and disciplined capital allocation, the net leverage ended at 2.73x net debt to adjusted EBITDA on 31 December 2024 which is similar to the level at the end of 2023.
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Reets
JACOBS
KIRK
TASSIMO
DOUWEI EGIERTS
JDE Peets
FINANCIAL REVIEW FULL-YEAR 2024 - BY SEGMENT
in EUR m (unless otherwise stated)
| Sales FY 2024 | Reported change | Organic change | Adj. EBIT FY 2024 | Reported change | Organic change² | |
|---|---|---|---|---|---|---|
| Europe | 4,717 | 0.8% | 0.5% | 1,041 | 4.5% | 4.3% |
| LARMEA | 2,030 | 32.1% | 21.2% | 223 | 41.0% | 25.3% |
| Peet's | 1,257 | 9.0% | 5.7% | 184 | 30.5% | 23.8% |
| APAC | 796 | 0.7% | 1.5% | 143 | 1.5% | 2.3% |
| Total JDE Peet's¹ | 8,837 | 7.9% | 5.3% | 1,277 | 13.2% | 10.4% |
¹ Including EUR 37 million of sales and EUR (314) million adj. EBIT that are not allocated to the segments
² Alternative Performance Measure. Refer to Reconciliation of non-IFRS measures
Europe
Organic sales growth of 0.5% was driven by an increase in price of 1.3% and a decrease in volume/mix of -0.8% as performances in various European markets were impacted by retaliations during price negotiations with retailers. Notable strong performances were delivered in countries such as the UK, Ireland and the Nordics, and brands including L'OR, Douwe Egberts and Kenco.
Reported sales increased by 0.8%. Adjusted EBIT increased organically by 4.3%, reflecting an increase in gross profit and a stable level of A&P.
LARMEA
Organic sales growth of 21.2% was driven by an increase in volume/mix of 3.3% and 17.9% in price. Most markets delivered positive vol/mix while Brazil experienced soft market conditions. Organic sales growth was particularly supported by brands such as Pilão and Jacobs. Maratá has been successfully consolidated and its contribution is in line with the business plan.
Reported sales increased by 32.1%, including a positive scope effect of 22.4% related to the consolidation of Maratá, and a foreign exchange of -11.5%. Adjusted EBIT increased organically by 25.3%, reflecting an increase in gross profit, lower A&P requirements for the roll-out of L'OR Barista in the U.S., and a low base of comparison.
Peet's
Organic sales growth of 5.7% was driven by an increase of 5.0% in volume/mix and 0.7% in price. Peet's In-Home business continued to deliver competitive growth across its Peet's, Stumptown, and Intelligentsia brands. In Peet's U.S. coffee stores, same-store sales and ticket size were up, and Peet's China continued to deliver strong double-digit organic sales growth.
Reported sales increased by 9.0%, which included a positive scope effect of 3.3% related to the consolidation of Caribou since 26 March 2024 and a foreign exchange effect of -0.1%. Adjusted EBIT increased organically by 23.8%, driven by strong operational performance, cost efficiencies, partially offset by higher A&P.
APAC
Organic sales growth of 1.5% was driven by an increase of 3.8% in price and -2.3% in volume/mix, with solid In-Home performance partially offset by soft performance in APAC's Away-from-Home business. Sales performance was geographically mixed, with solid performances in countries such as China, Australia and the Philippines, partially offset by softer performances in countries such as New Zealand and Malaysia.
Reported sales decreased by 0.7%. Adjusted EBIT increased organically by 2.3%, with a stable level of A&P.
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Peets CENTRE
JACOBS
VIRUS
TASSIMO
DOUWE EGBERTS
JDE Peets
Sustainability
JDE Peet's continued to make good progress on its Sustainability programme "Common Grounds" in 2024:
- A reduction of 30.0% in Scope 1 & 2 GHG emissions, versus base year 2020²
- 92.4% of our green coffee was responsibly sourced, excluding Maratá³
- 79.3% of our packaging was either reusable, recyclable or compostable
CONFERENCE CALL & AUDIO WEBCAST
Rafa Oliveira (CEO) and Scott Gray (CFO) will host a conference call for analysts and institutional investors at 10:00 AM CET today to discuss the full-year 2024 results. A live and on-demand audio webcast of the conference call will be available via JDE Peet's 'Investor Relations website'.
ENQUIRIES
Media
Khaled Rabbani
[email protected]
+31 20 558 1753
Investors & Analysts
Robin Jansen
[email protected]
+31 6 159 44 569
About JDE Peet's
JDE Peet's is the world's leading pure-play coffee and tea company, serving approximately 4,400 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 2024, JDE Peet's generated total sales of EUR 8.8 billion and employed a global workforce of more than 21,000 employees. Read more about our journey towards a coffee and tea for every cup at www.jdepeets.com.
² -1.4% in Scope 3 versus base year 2020
³ 83.2% including Maratá
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Peets COFFEE
JACOBS
VINC
TASSIMO
DOUWE EGBERTS
JDE Peets
IMPORTANT INFORMATION
Market Abuse Regulation
This press release contains information within the meaning of Article 7(1) of the EU Market Abuse Regulation.
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 IFRS® Accounting Standards as endorsed for use in the European Union by the European Commission and in conformity with the Dutch Civil Code ("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 2023 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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Peets CENTRE
JACOBS
VREES
TASSIMO
DOUWEI EGUERTS
JDE Peets
RECONCILIATION OF NON-IFRS MEASURES
In presenting and discussing JDE Peet's operating results, management uses certain Alternative Performance Measures (APMs) that contain non-IFRS measures that are not performance or liquidity measures under IFRS. These APMs are presented in addition to the figures that are prepared in accordance with IFRS. The Company's use of APMs may vary significantly from the use of other companies in its industry. The APMs used, should not be considered as an alternative to profit (loss), revenue or any other performance measure derived in accordance with IFRS or to net cash provided by operating activities as a measure of liquidity. More information on these APMs can be found below.
IFRS RECONCILIATION
Sales growth bridge by segment
| Vol/Mix | Price | Organic change | FX | Scope | Reported change | |
|---|---|---|---|---|---|---|
| Europe | -0.8% | 1.3% | 0.5% | 0.3% | — | 0.8% |
| LARMEA | 3.3% | 17.9% | 21.2% | -11.5% | 22.4% | 32.1% |
| Peet's | 5.0% | 0.7% | 5.7% | -0.1% | 3.3% | 9.0% |
| APAC | -2.3% | 3.8% | 1.5% | -0.8% | — | 0.7% |
| JDE Peet's | 0.7% | 4.5% | 5.3% | -2.1% | 4.7% | 7.9% |
Composition of Gross profit
| in EUR m | Reported 2024 | Adjusting items | Adjusted | Reported change | FX impact | Scope | Organic change |
|---|---|---|---|---|---|---|---|
| Gross Profit | 3,257 | 16 | 3,273 | 7.3% | 1.3% | -2.5% | 6.1% |
Reconciliation of Operating profit to Underlying profit for the period
| in EUR m | FY 2024 | FY 2023 |
|---|---|---|
| Operating profit | 1,056 | 685 |
| ERP system implementation | 16 | 7 |
| Transformation activities and corporate actions | 60 | 127 |
| Share-based payment expense | 17 | 43 |
| Mark-to-market results | (4) | (39) |
| Amortisation of acquired intangible assets and M&A/Deal costs | 132 | 305 |
| Total Adjusting items | 221 | 443 |
| Adjusted EBIT | 1,277 | 1,128 |
| Net financial income/(expenses) | (263) | (143) |
| Adjusted income tax expense | (295) | (254) |
| Adjusted non-controlling interest | 10 | 3 |
| Underlying Profit | 729 | 734 |
| Time-weighted average number of ordinary shares (in millions) | 487 | 486 |
| Underlying earnings per share (in EUR) | 1.50 | 1.51 |
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Peets COFFEE
JACOBS
VIRUS
TASSIMO
DOUWEI EGGERTS
JDE Peets
Reconciliation of reported to organic Adjusted EBIT growth
| Organic change | FX | Scope | Reported change | |
|---|---|---|---|---|
| Europe | 4.3% | 0.2% | — | 4.5% |
| LARMEA | 25.3% | -11.5% | 27.1% | 41.0% |
| Peet's | 23.8% | 0.2% | 6.5% | 30.5% |
| APAC | 2.3% | -0.8% | — | 1.5% |
| JDE Peet's | 10.4% | -1.6% | 4.4% | 13.2% |
Reconciliation of Adjusted EBIT to Adjusted EBITDA
| in EUR m | FY 2024 | FY 2023 |
|---|---|---|
| Adjusted EBIT | 1,277 | 1,128 |
| Adjusted D&A | 310 | 298 |
| Adjusted EBITDA | 1,587 | 1,426 |
Adjusted Depreciation and amortisation (Adjusted D&A)
| in EUR m | FY 2024 | FY 2023 |
|---|---|---|
| Depreciation, amortisation and impairments | 457 | 638 |
| Impairment property, plant & equipment | (27) | (46) |
| Amortisation and impairment of acquired intangible assets^{1} | (120) | (294) |
| Adjusted Depreciation and amortisation | 310 | 298 |
1 In 2023, a EUR 185 million impairment charge was included, related to the Jacobs brand.
Reconciliation of Total borrowings, Net debt, and Net leverage ratio
| in EUR m | FY 2024 | FY 2023 |
|---|---|---|
| Total borrowings | 5,568 | 5,915 |
| Cash & cash equivalents | (1,264) | (2,048) |
| Cash not at free disposal of the Company | 25 | 23 |
| Net debt | 4,329 | 3,890 |
| Adjusted EBITDA (LTM) | 1,587 | 1,426 |
| Net leverage ratio (Net debt divided by adjusted EBITDA LTM) | 2.73 | 2.73 |
Composition of Free cash flow
| in EUR m | FY 2024 | FY 2023 |
|---|---|---|
| Net cash provided by operating activities | 1,374 | 823 |
| Purchases of property, plant and equipment | (296) | (272) |
| Purchases of intangibles | (34) | (29) |
| Free Cash Flow | 1,044 | 522 |
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Peets CENTER
JACOBS
KPMG
TASSIMO
DOUWEI ECBERTS
JDE Refs
Composition of Total liquidity
| in EUR m | FY 2024 | FY 2023 |
|---|---|---|
| Cash and cash equivalents (excl. restricted cash) | 1,239 | 2,025 |
| Undrawn amount under RCF | 1,500 | 1,500 |
| Total liquidity | 2,739 | 3,525 |
Composition of Tax expense
| in EUR m | FY 2024 | FY 2023 |
|---|---|---|
| Reported income tax expense | (247) | (173) |
| Reported effective tax rate | 31.3% | 32.2% |
| Tax reserves, tax audit adjustments and reversals of previous recognised deferred tax assets | (1) | 5 |
| Tax effect on adjusting items | (47) | (86) |
| Underlying income tax expense | (295) | (254) |
| Underlying effective tax rate | 29.1% | 25.8% |
Definitions financial information
Adjusted depreciation and amortisation (adjusted D&A)
Adjusted depreciation and amortisation is defined as depreciation, amortisation and impairment, adjusted for the depreciation, amortisation and impairment already included in the adjusting items as included in adjusted EBIT.
Adjusted EBITDA
Adjusted EBITDA are defined as operating profit before depreciation, amortisation and impairment, adjusted for the same factors as listed under adjusted EBIT.
Adjusted EBIT
Adjusted EBIT are defined as profit for the period, adding back finance income, finance expense, share of net profit of associates and income tax expense adjusted for alternative performance measures as included in the consolidated financial statements for the year ended 31 December 2023 (note 2.1).
Adjusted gross profit
Adjusted gross profit is defined as reported gross profit adjusted for alternative performance measures as included in the consolidated financial statements for the year ended 31 December 2023 (note 2.1).
Adjusted income tax expense
Adjusted income tax expense is defined as income tax expense adjusted for the effect of tax rate changes on deferred tax assets/liabilities and the non-recurring items, such as tax reserves and tax audit adjustments.
Adjusted non-controlling interest
Adjusted non-controlling interest is defined as non-controlling interest adjusted for the effect of non-recurring items.
Away-from-Home
Coffee & tea products purchased for consumption outside of the home at offices, hotels, bars, restaurants etc. as well as in coffee stores.
Reets
JACOBS
VICTORIA
TAA
TAASSIMO
DOUMIC EGGERTS
Joe Reels
In-Home
Packaged coffee & tea products purchased for consumption at home.
Free cash flow
Free cash flow is defined as net cash provided by operating activities less purchases of property, plant and equipment and intangible assets.
Net debt
Net debt is defined as total borrowings less cash and cash equivalents, excluding cash not at the free disposal of the company.
Net leverage ratio
Net leverage ratio is defined as net debt divided by adjusted EBITDA of the last twelve months.
Organic adjusted EBIT
Organic adjusted EBIT is defined as adjusted EBIT translated at the prior year average foreign exchange rate and adjusted for scope changes (a.o. M&A and divestitures) and other items. To determine organic adjusted EBIT in a given year, adjusted EBIT in that year is translated at the average foreign exchange rate of the comparable year and excludes adjusted EBIT from acquired/divested companies until 12 months following the transaction date.
Organic adjusted gross profit
Organic adjusted gross profit is defined as adjusted gross profit translated at the prior year average foreign exchange rate and adjusted for scope changes (a.o. M&A and divestitures) and other items. To determine organic adjusted gross profit in a given year, adjusted gross profit in that year is translated at the average foreign exchange rate of the comparable year and excludes gross profit from acquired/divested companies until 12 months following the transaction date.
Organic sales
Organic sales are defined as revenue translated at the prior year average foreign exchange rate and adjusted for scope changes (a.o. M&A and divestitures) and other items. To determine organic sales in a given year, revenue in that year is translated at the average foreign exchange rate of the comparable year and excludes revenue from acquired/divested companies until 12 months following the transaction date.
Organic sales growth
Organic sales growth is defined as the growth in organic sales between the given and comparable year.
Underlying effective tax rate
The underlying effective tax rate is determined based on the reported effective tax rate adjusted for the tax rate effect of tax reserves, audit adjustments and the tax effect of adjusting items.
Underlying income tax expense
Underlying income tax expense is determined as the reported tax expense normalised for the tax effect of tax reserves, audit adjustments, reversals of previous recognised deferred tax assets and the tax effect of adjusting items.
Underlying profit
Underlying profit is defined as adjusted EBIT for the period including adjusted financial income and expenses, adjusted income tax expense and adjusted for minority shareholders.
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Reels
JACOBS
Reels
TASSIMO
DOUWEI EGREETS
Joe Reels
Definitions non-financial information
GHG emissions
Greenhouse gas emissions
Responsibly sourced green coffee
Green coffee deliveries covered by an independent sustainability scheme. This includes, but is not limited to, Enveritas, Rainforest Alliance, 4C, Fairtrade, or any other scheme recognised by the coffee industry, such as the Global Coffee Platform Equivalence Mechanism. A product or material which is "responsibly sourced" does not mean or imply the absence of human rights violations or other supply chain risks in connection with the production or supply of such product or material.
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Reels
JACOBS
Reels
TASSIMO
DOUWEI EGREETS
JDE Peets
JDE PEET'S N.V.
CONDENSED CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 31 DECEMBER 2024
TABLE OF CONTENTS
CONDENSED CONSOLIDATED UNAUDITED FINANCIAL STATEMENTS
Condensed Consolidated Income Statement (unaudited) for the year ended 31 December 2024 and 31 December 2023 13
Condensed Consolidated Statement of Comprehensive Income (unaudited) for the year ended 31 December 2024 and 31 December 2023 14
Condensed Consolidated Statement of Financial Position (unaudited) at 31 December 2024 and 31 December 2023 15
Condensed Consolidated Statement of Changes in Equity (unaudited) for the year ended 31 December 2024 and 31 December 2023 16
Condensed Consolidated Statement of Cash Flows (unaudited) for the year ended 31 December 2024 and 31 December 2023 18
Notes to the Condensed Consolidated Financial Statements (unaudited) 19
Condensed Financial Statements (unaudited)
JDE Peet's
CONDENSED CONSOLIDATED INCOME STATEMENT (UNAUDITED)
FOR THE YEAR ENDED 31 DECEMBER 2024 AND 31 DECEMBER 2023
In EUR million, unless stated otherwise
| NOTE | FY 2024 | FY 2023 | |
|---|---|---|---|
| Revenue | 6 | 8,837 | 8,191 |
| Cost of sales | 7 | (5,580) | (5,173) |
| Gross profit | 3,257 | 3,018 | |
| Selling, general and administrative expenses | 7 | (2,201) | (2,333) |
| Operating profit | 1,056 | 685 | |
| Finance income | 9 | 95 | 104 |
| Finance expense | 9 | (358) | (247) |
| Share of net profit / (loss) of associates | (3) | (5) | |
| Profit before income taxes | 790 | 537 | |
| Income tax expense | 10 | (247) | (173) |
| Profit for the period | 543 | 364 | |
| ATTRIBUTABLE TO: | NOTE | FY 2024 | FY 2023 |
| --- | --- | --- | --- |
| Owners of the parent | 561 | 367 | |
| Non-controlling interest | (18) | (3) | |
| Profit for the period | 543 | 364 | |
| Earnings per share: | |||
| Basic earnings per share (in EUR) | 8 | 1.15 | 0.76 |
| Diluted earnings per share (in EUR) | 8 | 1.13 | 0.75 |
The accompanying notes are an integral part of these condensed consolidated unaudited financial statements.
Condensed Financial Statements (unaudited)
JDE Peet's
CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME (UNAUDITED)
FOR THE YEAR ENDED 31 DECEMBER 2024 AND 31 DECEMBER 2023
In EUR million
| FY 2024 | FY 2023 | |
|---|---|---|
| Profit for the period | 543 | 364 |
| Other comprehensive income / (loss), net of tax: | ||
| Items that will not be reclassified to profit or loss | ||
| Retirement benefit obligation related items, net of tax | 40 | (28) |
| Items that may be subsequently reclassified to profit or loss | ||
| Foreign currency translation | (164) | (95) |
| Net investment hedge | 4 | 14 |
| Effective portion of cash flow hedges - foreign exchange contracts | 33 | 31 |
| Other comprehensive income / (loss) | (87) | (78) |
| Total comprehensive income / (loss) for the period | 456 | 286 |
| Attributable to: | ||
| Owners of the parent | 469 | 281 |
| Non-controlling interest | (13) | 5 |
| Total comprehensive income / (loss) for the period | 456 | 286 |
The accompanying notes are an integral part of these condensed consolidated unaudited financial statements.
Condensed Financial Statements (unaudited)
JDE Peet's
CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION (UNAUDITED)
AT 31 DECEMBER 2024 AND 31 DECEMBER 2023
In EUR million
| NOTE | 31 December 2024 | 31 December 2023¹ | |
|---|---|---|---|
| Non-current assets: | |||
| Goodwill and other intangible assets | 11 | 17,124 | 16,717 |
| Property, plant and equipment | 1,859 | 1,719 | |
| Deferred income tax assets | 57 | 49 | |
| Derivative financial instruments | 95 | 16 | |
| Retirement benefit asset | 13 | 504 | 432 |
| Other non-current assets | 54 | 72 | |
| 19,693 | 19,005 | ||
| Current assets: | |||
| Inventories | 1,675 | 1,248 | |
| Trade and other receivables | 893 | 729 | |
| Derivative financial instruments | 160 | 57 | |
| Income tax receivable | 25 | 36 | |
| Net assets held-for-sale | — | 18 | |
| Cash and cash equivalents | 1,264 | 2,048 | |
| 4,017 | 4,136 | ||
| Total assets | 23,710 | 23,141 | |
| Equity and liabilities | |||
| Equity: | |||
| Share capital | 5 | 5 | |
| Share premium | 9,588 | 9,585 | |
| Treasury stock | — | (38) | |
| Other reserves / (deficits) | (481) | (375) | |
| Retained earnings | 1,976 | 1,858 | |
| Equity attributable to the owners of the Company | 11,088 | 11,035 | |
| Non-controlling interest | 53 | 80 | |
| 11,141 | 11,115 | ||
| Non-current liabilities: | |||
| Borrowings | 12 | 4,999 | 5,388 |
| Retirement benefit liabilities | 13 | 165 | 170 |
| Deferred income tax liabilities | 1,235 | 1,226 | |
| Derivative financial instruments | 24 | 41 | |
| Provisions | 27 | 36 | |
| Other non-current liabilities | 2 | 32 | 46 |
| 6,482 | 6,907 | ||
| Current liabilities: | |||
| Borrowings | 569 | 527 | |
| Trade and other payables | 2 | 5,111 | 4,286 |
| Income tax liability | 72 | 81 | |
| Provisions | 54 | 68 | |
| Derivative financial instruments | 281 | 157 | |
| 6,087 | 5,119 | ||
| Total equity and liabilities | 23,710 | 23,141 |
¹ Following the amendments to IAS 1 regarding the classification of liabilities as either non-current or current, deferred revenue from customer loyalty programmes is classified as current. Comparable figures were restated. Refer to 2, Accounting standards
The accompanying notes are an integral part of these condensed consolidated unaudited financial statements.
Condensed Financial Statements (unaudited)
JDE Peet's
CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY (UNAUDITED)
FOR THE YEAR ENDED 31 DECEMBER 2024 AND 31 DECEMBER 2023
In EUR million
| Share capital | Share premium | Treasury stock | Retirement Benefit Obligation Related Items | Currency Translation Reserve | Cash flow hedge reserve | Total Other Comprehensive Income | Share-based payments reserve | Retained Earnings | Total equity attributable to the shareholders of the Company | Non-controlling interest | Total Equity | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance at 31 December 2022 | 5 | 9,997 | (471) | 276 | (635) | (21) | (380) | 67 | 1,834 | 11,052 | 80 | 11,132 |
| Application of hyperinflationary accounting | — | — | — | — | — | — | — | — | (2) | (2) | — | (2) |
| Balance at 1 January 2023 | 5 | 9,997 | (471) | 276 | (635) | (21) | (380) | 67 | 1,832 | 11,050 | 80 | 11,130 |
| Profit for the period | — | — | — | — | — | — | — | — | 367 | 367 | (3) | 364 |
| Retirement benefit obligation | — | — | — | (28) | — | — | (28) | — | — | (28) | — | (28) |
| Foreign currency translation | — | — | — | 6 | (109) | — | (103) | — | — | (103) | 8 | (95) |
| Foreign currency contracts | — | — | — | — | — | 31 | 31 | — | — | 31 | — | 31 |
| Net investment hedge | — | — | — | — | 14 | — | 14 | — | — | 14 | — | 14 |
| Total Comprehensive Income / (Loss) | — | — | — | (22) | (95) | 31 | (86) | — | 367 | 281 | 5 | 286 |
| Share-based payment transactions | — | — | — | — | — | — | — | 24 | — | 24 | — | 24 |
| Dividends | — | — | — | — | — | — | — | — | (339) | (339) | (2) | (341) |
| Release of treasury shares | — | — | 21 | — | — | — | — | — | — | 21 | — | 21 |
| Cancellation of treasury shares | — | (412) | 412 | — | — | — | — | — | — | — | — | — |
| Other transactions with shareholders | — | — | — | — | — | — | — | — | (2) | (2) | (3) | (5) |
| Balance at 31 December 2023 | 5 | 9,585 | (38) | 254 | (730) | 10 | (466) | 91 | 1,858 | 11,035 | 80 | 11,115 |
Condensed Financial Statements (unaudited)
JDE Peet's
| In EUR million | Share capital | Share premium | Treasury stock | Retirement Benefit Obligation Related Items | Currency Translation Reserve | Cash flow hedge reserve | Total Other Comprehensive Income | Share-based payments reserve | Retained Earnings | Total equity attributable to the shareholders of the Company | Non-controlling interest | Total Equity |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Balance at 31 December 2023 | 5 | 9,585 | (38) | 254 | (730) | 10 | (466) | 91 | 1,858 | 11,035 | 80 | 11,115 |
| Application of hyperinflationary accounting | — | — | — | — | — | — | — | — | 50 | 50 | 12 | 62 |
| Balance at 1 January 2024 | 5 | 9,585 | (38) | 254 | (730) | 10 | (466) | 91 | 1,908 | 11,085 | 92 | 11,177 |
| Profit for the period | — | — | — | — | — | — | — | — | 561 | 561 | (18) | 543 |
| Retirement benefit obligation | — | — | — | 40 | — | — | 40 | — | — | 40 | — | 40 |
| Foreign currency translation | — | — | — | — | (167) | — | (167) | (2) | — | (169) | 5 | (164) |
| Foreign currency contracts | — | — | — | — | — | 33 | 33 | — | — | 33 | — | 33 |
| Net investment hedge | — | — | — | — | 4 | — | 4 | — | — | 4 | — | 4 |
| Total Comprehensive Income / (Loss) | — | — | — | 40 | (163) | 33 | (90) | (2) | 561 | 469 | (13) | 456 |
| Common control transaction | — | — | — | — | — | — | — | — | (163) | (163) | — | (163) |
| Share-based payment transactions | — | — | — | — | — | — | — | (14) | 6 | (8) | — | (8) |
| Dividends | — | — | — | — | — | — | — | — | (341) | (341) | (2) | (343) |
| Release of treasury shares | — | (11) | 38 | — | — | — | — | — | — | 27 | — | 27 |
| Issuance of shares | — | 14 | — | — | — | — | — | — | — | 14 | — | 14 |
| Other transactions with shareholders | — | — | — | — | — | — | — | — | 5 | 5 | (24) | (19) |
| Balance at 31 December 2024 | 5 | 9,588 | — | 294 | (893) | 43 | (556) | 75 | 1,976 | 11,088 | 53 | 11,141 |
During the Annual General Meeting of Shareholders on 30 May 2024, a dividend of EUR 0.70 per share was approved, payable in two instalments of EUR 0.35 on 12 July 2024 and 24 January 2025. The dividend payable at 31 December 2024 amounted to EUR 170 million, which was recognised within Trade and other payables.
The accompanying notes are an integral part of these condensed consolidated unaudited financial statements.
Condensed Financial Statements (unaudited)
JDE Peet's
CONDENSED CONSOLIDATED STATEMENT OF CASH FLOWS (UNAUDITED)
FOR THE YEAR ENDED 31 DECEMBER 2024 AND 31 DECEMBER 2023
In EUR million
| FY 2024 | FY 2023 | |
|---|---|---|
| Profit for the period | 543 | 364 |
| Adjustments for: | ||
| Depreciation, amortisation and impairments | 457 | 638 |
| Defined benefit pension expense | (6) | (19) |
| Share-based payments | 17 | 43 |
| (Gain) / loss on sale of property, plant and equipment and intangible assets | 16 | 6 |
| Income tax expense | 247 | 173 |
| Interest income on bank accounts and other | (83) | (91) |
| Interest expense | 147 | 94 |
| Provision charges | 4 | 57 |
| Derivative financial instruments | (136) | 125 |
| Foreign exchange (gains) / losses | 208 | (45) |
| Other | (5) | 1 |
| Changes in operating assets and liabilities: | ||
| Inventories | (363) | 79 |
| Trade and other receivables | (107) | 116 |
| Trade and other payables | 742 | (478) |
| Pension payments | (9) | (9) |
| Payments of provisions | (44) | (26) |
| Realised foreign exchange (gains) / losses | (158) | 67 |
| Receipts / (payments) of derivative financial instruments | 116 | (53) |
| Income tax payments | (212) | (219) |
| Net cash provided by operating activities | 1,374 | 823 |
| Cash flows from investing activities: | ||
| Purchases of property, plant and equipment | (296) | (272) |
| Purchases of intangibles | (34) | (29) |
| Proceeds from sale of property, plant and equipment and other assets | 2 | 2 |
| Acquisition of businesses, net of cash acquired | (927) | (6) |
| Loans provided | (2) | (2) |
| Interest received | 83 | 84 |
| Other investing activities | (6) | (3) |
| Net cash used in investing activities | (1,180) | (226) |
| Cash flows from financing activities: | ||
| Additions to borrowings | 62 | 989 |
| Repayments from borrowings | (606) | (89) |
| Receipts from / (payments to) derivative financial instruments | (5) | (1) |
| Dividend paid to shareholders | (341) | (341) |
| Interest paid | (88) | (66) |
| Investments / (divestments) by non-controlling shareholders | 13 | 13 |
| Other financing activities | (14) | (14) |
| Net cash used in financing activities | (979) | 491 |
| Effect of exchange rate changes on cash | (3) | (7) |
| Net increase / (decrease) in cash and cash equivalents | (788) | 1,081 |
| Cash and cash equivalents – at the start of period | 2,048 | 967 |
| Adjustment for hyperinflationary accounting | 4 | — |
| Cash and cash equivalents — as of 31 December 1 | 1,264 | 2,048 |
$^{1}$ Cash and cash equivalents include restricted cash of EUR 25 million at 31 December 2024 (2023: EUR 23 million).
The accompanying notes are an integral part of these condensed consolidated unaudited financial statements.
Condensed Financial Statements (unaudited)
JDE Peet's
NOTES TO THE CONDENSED CONSOLIDATED FINANCIAL STATEMENTS
1. DESCRIPTION OF BUSINESS AND BASIS OF PREPARATION
JDE Peet's N.V. (the "Company" or together with its subsidiaries "JDE Peet's") is a public limited liability company under the laws of the Netherlands. The Company was incorporated on 21 November 2018 and is a public company (naamloze vennootschap, N.V.) listed on Euronext Amsterdam. The Company's main direct shareholder is Acorn Holding B.V. ("Acorn") which is fully owned by a Joh. A. Benckiser led investor group ("JAB"). The shares held by Mondelēz International Inc. on 31 December 2023 were sold to JAB on 29 November 2024.
All holders of a capital and/or voting interest of three per cent or more are disclosed to the Netherlands Authority for the Financial Markets ("AFM"). The AFM processes these disclosures in its publicly available register, which can be found at www.afm.nl.
Basis of preparation
The Company prepared these condensed consolidated unaudited financial statements ("financial statements") in accordance with IAS® 34 Interim Financial Reporting as issued by the International Accounting Standards Board (IASB) and endorsed by the European Union (EU).
The basis of preparation and the accounting policies used to prepare the financial statements are the same as those described in the consolidated financial statements at and for the year ended 31 December 2024.
The financial statements for all periods have been prepared under the historical cost basis, except for financial instruments, financial liabilities in relation to share-based payments and pension plan assets, which are recognised at fair value. These financial statements do not include all the notes of the type normally included in an annual financial report.
For purposes of these financial statements, segmentation is based on how the chief operating decision maker ("CODM") reviews the performance of the business and allocates resources, as further disclosed in the segmentation disclosure note.
Where applicable, the presentation of the comparative financial information was adjusted to conform to the presentation of the statement of financial position and income statement of the current period. These reclassifications had no impact on net result or equity.
Functional and presentation currency
These financial statements are presented in Euros, which is the Company's functional and reporting currency. All financial information presented in Euros has been rounded to the nearest million unless stated otherwise.
Use of estimates and judgments
The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets and liabilities, income and expenses. Actual results may differ from these estimates. In preparing these financial statements, the significant judgements made by management in applying the Company's accounting policies and the key sources of estimation uncertainty were the same as those that applied to the consolidated financial statements at and for the year ended 31 December 2023, except for judgement related to Pillar Two taxes effective as of 1 January 2024, refer to note 10. JDE Peet's continuously assess the basis of the consolidation, including the control over its operations (in accordance with IFRS 10). For these interim financial statements, no changes in control were identified compared to 31 December 2023, except for the newly acquired operations as disclosed in note 3.
Condensed Financial Statements (unaudited)
JDE Peet's
2. ACCOUNTING STANDARDS
The condensed consolidated unaudited financial statements should be read in conjunction with the consolidated financial statements of JDE Peet's at and for the year ended 31 December 2023, which were prepared in accordance with, and comply, in all material respects, with IFRS® Accounting Standards as endorsed for use in the European Union by the European Commission and in conformity with the Dutch Civil Code.
Segment information
Effective 1 January 2024, the managerial responsibilities of certain minor business activities were transferred from Europe to LARMEA and from APAC to Unallocated. The comparative figures were updated to reflect these changes.
New IFRS Accounting Standards, Amendments and Interpretations effective on or after 1 January 2024
The following new IFRS accounting standards and interpretations effective for accounting periods beginning on or after 1 January 2024 have been applied to the financial statements of JDE Peet's for the year ended 31 December 2024, where applicable:
- Amendments to IAS 1 - Classification of liabilities as current or non-current
- Amendments to IAS 1 - Non-current liabilities with Covenants
- Amendments to IAS 7 and IFRS 7 - Supplier Finance Arrangements
- Amendments to IFRS 16 - Lease liability in a sale and leaseback
- Agenda decision - Disclosure of Revenues and Expenses for Reportable Segments (IFRS 8)
JDE Peet's implemented the amendments to IAS 1 regarding the classification of liabilities as either current or non-current. Consequently, the deferred revenue from the loyalty program was fully classified as current for the year 2024. In previous periods, this balance was divided between current and non-current. The transition guidance in IAS 1 was adhered to, and the reclassification of the 2023 non-current loyalty programme deferred revenue of EUR 61 million to current, was applied retrospectively.
The other amendments listed above did not have any impact on the amounts recognised in prior periods and do not significantly affect the current period.
3. BUSINESS COMBINATIONS
On 4 January 2024, JDE Peet's completed the acquisition of the Brazilian coffee & tea business Indústrias Alimentícias Maratá Ltda ("Maratá") from JAV Group for a total purchase consideration of EUR 682 million, net of cash acquired. The acquisition expands JDE Peet's' emerging markets presence. Maratá's coffee & tea business is predominantly present in the northern part of Brazil through its long-standing and well-known brands Café Maratá and Chá Maratá. The business employs around 1,200 employees, operates two manufacturing plants and reported around BRL 1.3 billion annual average sales for the last two years.
JDE Peet's applied the acquisition method to account for the Maratá business combination and included all assets and liabilities at fair value in accordance with IFRS 3. Consequently, purchase price allocation of all identifiable assets and (contingent) liabilities acquired were performed. The purchase price allocation was finalised in the year 2024.
Condensed Financial Statements (unaudited)
JDE Peet's
The following table summarises the considerations paid and the fair values of assets and (contingent) liabilities acquired at the acquisition date (EUR million):
| Maratá | |
|---|---|
| Property, plant and equipment | 30 |
| Other non-current assets | 2 |
| Deferred tax assets | 1 |
| Inventories | 29 |
| Income tax receivable | 6 |
| Trade and other receivables | 69 |
| Non-current borrowings | (1) |
| Provisions | (28) |
| Other non-current liabilities | (2) |
| Trade and other payables | (4) |
| Income tax liability | (5) |
| Net assets acquired | 97 |
| Goodwill | 399 |
| Trademarks | 186 |
| Total consideration in cash for the acquisition | 682 |
| Cash consideration paid in 2024 | 682 |
| Total consideration in cash for the acquisition | 682 |
Since the acquisition in 2024, Maratá contributed revenue of EUR 317 million and a net profit of EUR 38 million.
On 26 March 2024, JDE Peet's completed a long-term global license agreement to manufacture, market and sell Caribou consumer and foodservice coffee products, excluding Caribou coffeehouses, for a total consideration of EUR 245 million. The transaction provides JDE Peet's a strong platform to expand its premium coffee portfolio in North America. Under the terms of the agreement, JDE Peet's acquired Caribou's roasting operations in Minneapolis, Minnesota. The two companies have also reached a long-term strategic arrangement under which JDE Peet's will supply coffee products for sale in Caribou's coffeehouses.
The Caribou business was part of the JAB group of companies and consequently the accounting method of a business combination under common control was applied. Under this method, the assets and liabilities of the acquired business are recognised at the book values recognised in the ultimate parent entity's consolidated financial statements (adjusted for the alignment of accounting policies). The difference between the purchase consideration and the book values of the acquired assets and liabilities amounted to EUR 163 million and was recognised in equity.
Since the acquisition in 2024, Caribou contributed revenue of EUR 38 million and a net loss of EUR 4 million.
4. FINANCIAL RISKS
JDE Peet's activities are exposed to a variety of financial risks.
Fair values
This note provides an update on the judgements and estimates made by JDE Peet's in determining the fair values of the financial instruments since the last consolidated financial statements.
Condensed Financial Statements (unaudited)
JDE Peet's
The following table presents the assets and liabilities of JDE Peet's that are measured at fair value at 31 December 2024 (in EUR million):
| Level 1 | Level 2 | Level 3 | Total | |
|---|---|---|---|---|
| Assets | ||||
| Interest rate contracts | — | 42 | — | 42 |
| Foreign exchange contract | — | 205 | — | 205 |
| Commodity contracts | 8 | — | — | 8 |
| Total assets | 8 | 247 | — | 255 |
| Liabilities | ||||
| Unsecured notes - EU | 4,095 | — | — | 4,095 |
| Unsecured notes - US | 1,200 | — | — | 1,200 |
| Borrowings | — | 273 | — | 273 |
| Share-based payment liability | — | — | 3 | 3 |
| Management-owned shares liability | — | — | 17 | 17 |
| Interest rate contracts | — | 20 | — | 20 |
| Foreign exchange contracts | — | 29 | — | 29 |
| Commodity contracts | 8 | — | — | 8 |
| Total return equity swaps | — | 248 | — | 248 |
| Total liabilities | 5,303 | 570 | 20 | 5,893 |
There were no transfers between different levels during the year ended 31 December 2024 and there were no changes in relation to 31 December 2023 with regards to the inputs and valuation techniques in determination of the fair values.
Liquidity
JDE Peet's liquidity position remained strong, with total liquidity of EUR 2.7 billion consisting of a cash position of EUR 1.2 billion (excluding restricted cash) and an undrawn committed Revolving Credit Facility of EUR 1.5 billion.
5. SEGMENT INFORMATION
Effective 1 January 2024, the managerial responsibilities of certain minor business activities were transferred from Europe to LARMEA and from APAC to Unallocated. The comparative figures were updated to reflect these changes.
The segment information is presented for the year ended 31 December 2024 (all amounts in EUR million, in line with Note 2.1 of the consolidated financial statements for the year ended 31 December 2023):
| Revenue | FY 2024 | FY 2023^{1} |
|---|---|---|
| Europe | 4,717 | 4,680 |
| LARMEA | 2,030 | 1,537 |
| Peet's | 1,257 | 1,153 |
| APAC | 796 | 791 |
| Unallocated | 37 | 30 |
| Total | 8,837 | 8,191 |
1 The comparative information for the year ended 31 December 2023, was updated to reflect the transfer of some minor business activities from Europe to LARMEA and from APAC to Unallocated. Refer to Segment information included in note 2, Accounting Standards.
The CODM, the Company's CEO, reviews segment profitability based on adjusted EBIT. There are no intersegment revenues. For further details on adjusted EBIT, reference is made to note 2.1 of the consolidated financial statements for the year ended 31 December 2023.
Condensed Financial Statements (unaudited)
JDE Peet's
Adjusted EBIT is reconciled to Operating profit and Profit before income taxes on a consolidated basis in the tables presented below (in EUR million):
| FY 2024 | FY 2023^{1} | |
|---|---|---|
| Europe | 1,041 | 995 |
| LARMEA | 223 | 158 |
| Peet's | 184 | 141 |
| APAC | 143 | 141 |
| Unallocated | (314) | (307) |
| Adjusted EBIT | 1,277 | 1,128 |
| ERP system implementation | (16) | (7) |
| Transformation activities and corporate actions^{2} | (60) | (127) |
| Share-based payment expense | (17) | (43) |
| Mark-to-market results | 4 | 39 |
| Amortisation acquired intangible assets and M&A/Deal costs^{3} | (132) | (305) |
| Operating profit^{4} | 1,056 | 685 |
| Finance income | 95 | 104 |
| Finance expense | (358) | (247) |
| Share of net loss of associates | (3) | (5) |
| Profit before income taxes | 790 | 537 |
1 The comparative information for the year ended 31 December 2023, was updated to reflect the transfer of some minor business activities from Europe to LARMEA and from APAC to Unallocated. Refer to Segment information included in note 2, Accounting Standards.
2 Transformation activities and corporate actions in 2023 included expenses related to the establishment of the Europe omni-channel segment and the severance and an impairment charge related to the closure of the instant processing and R&D facilities in Banbury, UK. Further impairments and expenses for several cost-saving initiatives were included in 2024.
3 This consistently includes amortisation of EUR 120 million (2023: EUR 109 million) related to intangible assets recognised or remeasured as part of purchase price allocations. In 2023, an impairment charge was recognised for an amount of EUR 185 million related to the Jacobs brand.
4 In 2024, EUR (204) million of adjusting items (2023: EUR (410) million) were recognised in selling, general and administrative expenses and EUR (16) million (2023: EUR (33) million) in cost of sales.
Adjusted EBIT of the segments includes depreciation, which amounted to EUR 310 million (2023: EUR 298 million):
| FY 2024 | FY 2023^{1} | |
|---|---|---|
| Europe | 133 | 137 |
| LARMEA | 34 | 16 |
| Peet's | 84 | 82 |
| APAC | 31 | 32 |
| Unallocated | 28 | 31 |
| Total | 310 | 298 |
1 The comparative information for the year ended 31 December 2023, was updated to reflect the transfer of some minor business activities from Europe to LARMEA and from APAC to Unallocated. Refer to Segment information included in note 2, Accounting Standards.
Entity-wide disclosures:
The total revenue from external customers, broken down by the location of the selling entity is shown in the following table (in percentages of total revenue):
| FY 2024 | FY 2023 | |
|---|---|---|
| United States | 13% | 13% |
| Germany | 9% | 10% |
| Brazil | 11% | 7% |
| France | 12% | 12% |
| Netherlands | 9% | 9% |
| Rest of World | 46% | 49% |
| Total Revenue | 100% | 100% |
There are no individual customers that amount to 10% or more of JDE Peet's revenue.
Condensed Financial Statements (unaudited)
JDE Peet's
6 REVENUE
The total revenue from external customers, broken down by product is shown in the following table (in percentages of total revenue):
| FY 2024 | FY 2023 | |
|---|---|---|
| Coffee | 85% | 84% |
| Tea | 3% | 3% |
| Other food and beverage | 10% | 11% |
| Services | 2% | 2% |
| Total | 100% | 100% |
7. EXPENSES BY NATURE
The aggregate of cost of sales and selling, general and administrative expenses is specified by nature as follows (in EUR million):
| FY 2024 | FY 2023 | |
|---|---|---|
| Cost of product^{1} | 4,718 | 4,213 |
| Employee benefits expense^{2} | 1,255 | 1,270 |
| Other selling, general and administrative expenses^{3} | 1,345 | 1,333 |
| Depreciation, amortisation and impairment | 457 | 638 |
| Restructuring and restructuring related expenses | 6 | 52 |
| Total | 7,781 | 7,506 |
1 Cost of product mainly consists of raw materials (green coffee beans, tea leaves and other materials) for 68% (2023: 66%), packaging 11% (2023:13%), coffee taxes 4% (2023: 4%), outsourced production services 2% (2023: 3%) and inbound freight 2% (2023: 2%).
2 Employee benefit expense consists of wages, salaries, pension costs, share-based payments and related social security charges.
3 Other selling, general and administrative expenses in the table above include costs for advertising and promotion, distribution, repairs, maintenance and utilities, amongst others.
8. EARNINGS PER SHARE
Basic earnings per share ("EPS") is calculated by dividing the profit for the year attributable to the shareholders of the Company by the time-weighted average number of common shares outstanding during the year.
Diluted EPS is calculated by dividing the profit attributable to the shareholders of the Company by the time-weighted average number of common shares outstanding during the period adjusted for the time-weighted average number of common shares that would be issued on the conversion of all the dilutive potential common shares into common shares. At both the level of the Company, and subsidiary level, there are share-based payment plans that should be considered in the earnings per share calculation. The share-based payment plans at the subsidiary level are taken into consideration in the determination of the net profit attributable to owners of the Company.
Condensed Financial Statements (unaudited)
JDE Peet's
The calculation of the basic and diluted earnings per share is based on the following data:
| FY 2024 | FY 2023 | |
|---|---|---|
| Earnings for the purposes of basic earnings per share being net profit attributable to owners of the Company (in EUR million) | 561 | 367 |
| Number of shares | ||
| Time-weighted average number of ordinary shares for the purposes of basic earnings per share | 486,961,255 | 485,747,602 |
| Adjustments for the calculation of diluted earnings per share: Share-based payment plans | 7,732,384 | 6,075,375 |
| Time-weighted average number of ordinary shares for the purposes of diluted earnings per share | 494,693,639 | 491,822,977 |
| Basic EPS (in EUR) | 1.15 | 0.76 |
| Diluted EPS (in EUR) | 1.13 | 0.75 |
The total number of shares outstanding (excluding treasury shares) at 31 December 2024 was 488,178,642 (2023: 486,042,837). At 31 December 2024, the Company held no shares in Treasury Stock (2023: 1,403,020).
9. FINANCE INCOME AND EXPENSE
Finance income and expense consist of the following (in EUR million):
| FY 2024 | FY 2023 | |
|---|---|---|
| Interest income | 83 | 91 |
| Interest expense 1 | (147) | (94) |
| Net financing cost of financial debt | (64) | (3) |
| Interest income on plan assets | 72 | 75 |
| Interest expense on defined benefit obligation | (60) | (62) |
| Total pension finance (expense) / income | 12 | 13 |
| Foreign exchange gain / (loss) | (208) | 45 |
| Change in fair value of derivative financial instruments 2 | 8 | (195) |
| Fair value changes financial liabilities | 4 | (3) |
| Net monetary gain / (loss) | (15) | — |
| Total other | (211) | (153) |
| Net finance expense | (263) | (143) |
1 Interest expense primarily includes interest on unsecured notes (2024: EUR 84 million; 2023: EUR 45 million), total return equity swaps (2024: EUR 26 million; 2023: EUR 23 million), lease liabilities (2024: EUR 11 million; 2023: EUR 9 million), bank overdrafts (2024: EUR 5 million; 2023: EUR 4 million), amortisation expenses (2024: EUR 6 million; 2023: EUR 6 million) and interest rate swaps (2024: EUR 5 million; 2023: EUR 0 million).
2 Change in fair value of derivative financial instruments includes the total return equity swaps (2024: EUR (154) million; 2023: EUR (53) million)
10. INCOME TAX
In 2024, JDE Peet's income tax expense amounted to EUR (247) million and the profit before tax amounted to EUR 790 million, resulting in an effective tax rate of 31.3% (2023: 32.2%). This is 0.9% lower than last year, which is primarily driven by (i) higher profits against lower average tax rates (decrease of 1.2%), (ii) decreasing impact of deferred tax assets derecognition (decrease of 1.8%), partly offset by (iii) higher non-deductible fair value losses from derivative instruments and other non-deductible expenses (increase of 1.8%).
Condensed Financial Statements (unaudited)
JDE Peet's
Pillar Two
The assessment of the potential exposure to Pillar Two income taxes is based on the current year information available regarding the financial performance of the constituent entities within JDE Peet's. Based on the assessment, the Pillar Two effective tax rates in most of the jurisdictions in which JDE Peet's operates are above 15%. However, there is a limited number of jurisdictions where the transitional safe harbour relief does not apply and the Pillar Two effective tax rate is close to 15%. The total amount of Pillar Two income taxes that is recognised at year-end 2024, is considered not material.
11. GOODWILL AND OTHER INTANGIBLE ASSETS
Assets that are subject to amortisation are reviewed for impairment whenever events or circumstances indicate that the carrying amount may not be recoverable. Assets that have an indefinite useful life, such as goodwill, trademarks and brands, are not subject to amortisation and are tested at least annually for impairment. This test was performed on the last day of the third quarter of the year and whenever a significant event occurs or circumstances change that might reduce the recoverable amount of the goodwill.
Management performed sensitivity analyses around the key assumptions. Management believes that no reasonable possible changes in key assumptions would cause, in isolation, the recoverable amount of the significant cash generating units to be less than the carrying value. Special consideration was given to the value of the Russian business within the LARMEA segment and specific analyses were performed, which did not change the above conclusion. Any changes in the situation, including the assessment on retaining control over the operations in Russia, may lead to increased sensitivity in the valuation assessment of the LARMEA segment. JDE Peet's has applied for an extension of the license obtained from the Dutch competent authorities under article 5n, paragraph 10 of EU Council Regulation No 833/2014, which is valid until 31 May 2025.
Condensed Financial Statements (unaudited)
JDE Peet's
12. BORROWINGS
The Group's borrowing facilities through the year ended 31 December 2024 are summarised in the following tables (in EUR million):
| Currency | 31 December 2023 | Business combinations | Unwinding discount | Additions | Repaid | Remeasure-ment | Amortisation | Recognition of lease liability | Currency translation | 31 December 2024 | |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Unsecured notes - EU | EUR | 4,088 | — | — | — | — | 4 | 3 | — | — | 4,095 |
| Unsecured notes - US | USD | 1,581 | — | — | — | (450) | (4) | 1 | — | 72 | 1,200 |
| JDE: Other financing | Various | 8 | 1 | — | 62 | (65) | — | — | — | (3) | 3 |
| Leases | Various | 261 | — | 13 | — | (91) | — | (3) | 97 | 10 | 287 |
| Unamortised discounts and costs | (23) | — | — | — | — | — | 6 | — | — | (17) | |
| Total borrowings | 5,915 | 1 | 13 | 62 | (606) | — | 7 | 97 | 79 | 5,568 | |
| Non-current | 5,388 | 4,999 | |||||||||
| Current | 527 | 569 |
Condensed Financial Statements (unaudited)
JDE Peet's | 27
13. POST EMPLOYMENT AND OTHER LONG TERM EMPLOYEE BENEFIT PLANS
JDE Peet's updated the actuarial valuations of it defined benefit plans at 31 December 2024.
The retirement benefit asset of EUR 504 million at 31 December 2024 represents the net asset of the plans in the United Kingdom and increased EUR 72 million compared to 31 December 2023. The increase was mainly driven by net interest income of EUR 17 million (2023: 18 million), actuarial gains of EUR 32 million (2023: losses of EUR 21 million) and EUR 22 million (2023: EUR 9 million) favourable translation results of the net asset position from British Pound to Euro.
The retirement benefit liabilities decreased from EUR 170 million at 31 December 2023 to EUR 165 million at 31 December 2024, mainly from actuarial gains of EUR 10 million (2023: losses of EUR 16 million) and net interest expense of EUR 5 million (2023: EUR 5 million).
The weighted-average actual assumptions used in measuring the defined benefit cost recognised in the consolidated income statement of the next year and plan obligations at the end of the reporting periods are as follows:
| 31 December 2024 | 31 December 2023 | |||
|---|---|---|---|---|
| UK | Germany | UK | Germany | |
| Discount rate | 5.40% | 3.40% | 4.50% | 3.20% |
| Indexation rate inactive participants - deferred | 2.90% | N/A | 2.75% | N/A |
| Indexation rate inactive participants - pensioners | 2.85% | 2.00% | 2.75% | 2.00% |
| Inflation rate | 3.30% | 2.00% | 3.20% | 2.50% |
| Future salary increases | N/A | 2.75% | N/A | 2.75% |
14. SUBSEQUENT EVENTS
Management did not identify any adjusting or non-adjusting subsequent events.
Condensed Financial Statements (unaudited)
JDE Peet's
JDE Peets
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