Excluding a positive effect of 4.7% related to foreign exchange and 0.3% related to scope and other changes, total sales increased by 11.3% on an organic basis.
For the medium to long-term, JDE Peet's hopes to achieve organic sales growth in the range of 3 to 5% and mid-single-digit organic adjusted EBIT growth, a free cash flow conversion of approximately 70%, and stable to increasing dividends over time.
JDE Peet’s has attributed its organic growth of 1.8% in the EU to an increase in price of 14.5% and a decrease in volume/mix of - 12.7%.
The company said while volume elasticity remained below the historical average, volumes were negatively impacted by retaliations during customer negotiations across various European markets, including Germany, France and the UK.
JDE Peet’s claimed notable strong performance was delivered by countries such as Poland, Hungary and Denmark and brands including Jacobs and Gevalia.
Double-Digit Sales Growth
"In 2022, we delivered double-digit sales growth, increased our absolute gross profit, delivered strong free cash flow and higher EPS, while increasing investments to support our long-term growth ambition in areas such as marketing, innovation, digital commerce, emerging market capabilities and sustainability," said Fabien Simon, CEO of JDE Peet’s.
He added, "Consequently, we are emerging stronger for 2023, with an elevated growth portfolio, a competitive market share position, a well invested business and a more productive and very engaged enterprise.
"These many results and achievements were made possible by the resilience, resolution and agility of our people, who worked incredibly hard, together with every partner in our ecosystem, to manage these turbulent times, while simultaneously making continued strong progress on our growth- and purpose-led strategy."