Good progress and broad-based performance, delivered in a quality way
PRESS RELEASE
Key items1
- Total organic sales grew 4.2%, supported by In-Home momentum (+4.9%) and fuelled by Single Serve and Beans growing double-digit. E-commerce grew by 30% In-Home
- Away-from-Home returned to profitability, despite largely stable sales base on average for H1 (+0.7%) although with visible positive reopening effects in Q2
- Organic adjusted EBIT grew 0.8% to
EUR 636 million , with gross profit margin expansion - Free cash flow of
EUR 553 million and net debt reduced toEUR 4,660 million - Leverage reduced to 2.98x, from 3.23x at the end of FY 20
- Underlying EPS grew 12.9%, mainly supported by operational improvements
- Positive market share performance across technologies and continued progress on Sustainability
- Confident to reach FY 21 outlook
A message from
“I would like to thank all our teams around the world for their perseverance while successfully navigating our company through all the ongoing challenges and complexity and for delivering this strong set of results.
We are pleased with our first-half 2021 results, across all key metrics, including top-line, profitability, cash generation and in-market performance. 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
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
We also significantly optimised our financial position and capital structure, reducing our leverage to below 3x, and our average cost of debt to around 1.5%, from our successful refinancing and inaugural bond issue.
Looking at our Sustainability agenda, I am very pleased that in June, our European manufacturing footprint reached
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."
Sustainability
We continued to make good progress on our Sustainability agenda in the first half of 2021. In March, when we refinanced our bank facilities, we connected
Outlook 2021
Although vaccination programmes around the world continue to support the gradual lifting of lockdown measures, the COVID situation remains highly volatile and uncertain as, unfortunately, spikes in infection rates in a number of countries continue to lead to new lockdowns. This continues to limit the visibility and predictability regarding the timing and the pace of the recovery in our Away-from-Home businesses.
Within this context, we continue to expect organic sales growth of 3 to 5% in FY 21, assuming a gradual recovery in Away-from-Home. We also continue to expect organic adjusted EBIT to grow in the low single-digit range in FY 21, as we step up our investments for growth, notably in marketing and innovation support.
Our commitment to reduce our leverage to below 3x net debt to EBITDA was achieved by the end of June.
FINANCIAL REVIEW HALF-YEAR 2021
in EUR m (unless otherwise stated)
6M 2021 | 6M 2020 | Organic change | Reported change | ||
Sales | 3,254 | 3,236 | 4.2 % | 0.5 % | |
Adjusted EBIT | 636 | 642 | 0.8 % | -1.0 % | |
Underlying profit for the period | 446 | 393 | - | 13.5 | % |
Underlying EPS (EUR) 1, 2 | 0.89 | 0.79 | - | 12.9 | % |
Reported basic EPS (EUR) | 0.76 | 0.44 | - | 72.7 | % |
1 Underlying earnings (per share) exclude all adjusting items (net of tax) | |||||
2 Based on 501,446,549 shares outstanding (H1 20: 498,719,501) on 30 June |
In H1 21, total sales increased by 4.2% on an organic basis. Our In-Home businesses continued to deliver strong organic sales growth of 4.9% while sales in Away-from-Home remained relatively stable (+0.7%) as the positive effects of re-openings in a limited number of countries in the course of H1 21 was largely offset by new lockdowns in a number of other markets.
Total organic sales growth reflects a volume/mix effect of 3.7% and 0.4% in price. Changes in scope and other changes decreased sales by 0.2% while foreign exchange had a negative impact of 3.5%. Total reported sales increased by 0.5% to
Adjusted EBIT increased organically by 0.8% to
Underlying profit - excluding all adjusting items net of tax - increased by 13.5% to
Net leverage improved to 2.98x net debt to adjusted EBITDA from 3.23x at the end of FY 20.
In the first half of 2021, both Moody's and
Our liquidity position remains strong, with total liquidity of
For the full and original version of the press release click here
CONFERENCE CALL & AUDIO WEBCAST
1 This press release contains certain non-IFRS financial measures and ratios, which are not recognised measures of financial performance or liquidity under IFRS. For a reconciliation of these non-IFRS financial measures to the most directly comparable IFRS financial measures, see page 6 of the press release.
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About JDE Peet’s
JDE Peet’s is the world's leading pure-play coffee and tea company by revenue and served approximately 4,500 cups of coffee or tea every second in 2020.
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 International Financial Reporting Standards as adopted by the
Forward-looking Statements
These materials contain forward-looking statements as defined in
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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.
Attachment
- jde-peets-half-year-results-2021-report
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