JDE Peet's has reported better-than-expected operating profit for the first half of its 2021 financial year, as growth in sales of coffee for home consumption offset an uneven restart for coffee shops due to the pandemic.
Adjusted operating profit (EBIT) fell 1% to €636 million, compared to the same period a year earlier, which the company said was due in part to marketing costs and unfavourable exchange rates.
Revenue inched up 0.5% to €3.25 billion, with sales for at-home consumption, including coffee purchased at grocery stores, climbing 4.9% on a like-for-like basis.
Analysts had expected EBIT to come in at €610 million and revenue at €3.28 billion, according to a company compiled poll .
The company, which launched an IPO last year, repeated a March forecast for organic sales growth of 3% to 5% for the full year and a "single-digit" increase in adjusted EBIT.
Chief executive Fabien Simon, who was appointed last year, said that inflation in both packaging and rising green coffee costs have been factored into the company's plans.
"We are pleased with our first-half 2021 results, across all key metrics, including top-line, profitability, cash generation and in-market performance," he said. "Guided by our refreshed strategy, we delivered 4.2% organic sales growth, in a quality way, with a gross profit margin expansion of 26 basis points that enabled JDE Peet's to reinvest behind its powerful portfolio of brands and future growth opportunities.
"In the first half of the year, we also continued to evolve our business portfolio. We announced partnerships with J.M. Smucker in the US and with Pret A Manger in the UK, the acquisition of Campos in Australia and the divestment of two small businesses in the Netherlands and France."
The company's 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.
"Based on the progress made in the first half of 2021 and our current expectations for the remainder of the year, we remain confident to reach our outlook for the year, being intentional on managing inflation and navigating the enduring uncertainty of the pandemic," Simon added.
JDE is controlled by JAB Holding Company, the investment vehicle of Germany's Reimann family.