JDE Peet’s, the pure-play coffee and tea company, has announced the execution of a share repurchase for a total amount of €500 million.
The shares were purchased from its shareholder Mondelēz International Holdings Netherlands B.V. at a price per share equal to the market closing price on Friday, 6 May 2022.
JDE Peet's Share Buyback
In discussing the terms of the transaction to the company and its stakeholders, including its shareholders, Fabien Simon, CEO of JDE Peet’s said, "This represents a unique opportunity to increase the free float percentage and improve our earnings per share at a very attractive price to the company.
"The Board (excluding the MDLZ nominees) carefully evaluated the transaction and concluded that it is in the best interests of the company and all its stakeholders.”
The transaction reflects the board’s confidence in the future of the company, according to Olivier Goudet, chairman of the board of directors, who stated that "it was appropriate for the company to now take advantage of a great investment opportunity whilst the company enjoys the financial flexibility to give effect to this important transaction."
2021 Financial Performance
The buyback closely follows the release of JDE Peet’s financial results for 2021, with the group reporting a 2% rise in full-year core profit that came in slightly ahead of analysts' expectations.
The coffee and tea group also forecast 'stable' profit for 2022 amid strong inflation.