JDE Peet’s has forecast a decline for a key profit metric in 2025 amid “historic” green coffee costs.
The Dutch coffee and tea company expects to report a “low single-digit” decline in adjusted EBIT on an organic basis this year.
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In 2024, JDE Peet’s adjusted EBIT rose 10.4% on an organic basis to €1.3bn ($1.36bn).
The forecast comes on the back of soaring green coffee prices, which JDE Peet’s said have “more than doubled” on average year on year.
The Douwe Egberts brand owner pointed to “atypical” weather conditions in coffee-growing countries, “multiple supply chain disruptions and broader macroeconomic and geopolitical factors”.
JDE Peet’s is forecasting a “high-single-digit” rise in annual sales on an organic basis for 2025.
Last year, sales rose 5.3% organically amid a 4.5% impact from prices. The group said “volume/mix” increased 0.7%.
On a reported basis, sales rose 7.9% to €8.83bn.
JDE Peet’s business in Europe, accounting for over half of the company’s sales, saw modest organic growth of 0.5%.
In December, Belgian supermarket chain Colruyt halted the supply of several JDE Peet’s coffee products due to a dispute over prices.
The LARMEA division, made up of the group’s operations in Latin America, Russia, Middle East and Africa, emerged as the company’s fastest-growing segment, with sales surging 21.2% organically. JDE Peet’s said its pricing across the division accounted for 17.9 percentage points of the growth.
JDE Peet’s CEO Rafa OIiveira described the figures as a “strong set of broad-based results”.
Looking ahead, Oliveira said the company plans to “maintain strict pricing discipline” to mitigate the surge in green coffee prices and identify “efficiencies to fund brand investments”.
JDE Peet’s plans to launch a multi-year share repurchase programme citing “strong confidence in its long-term value creation opportunities and strong free cash flow generating capabilities”.
The buyback will be valued at up to €1bn, with an initial allocation of up to €250m for buybacks in 2025.
