In the first half of 2020, JDE Peet’s reported adjusted earnings before interest and tax (EBIT) of €642 million (about £579 million).
It marks an organic increase of 10.5% year-on-year, driven by a double-digit rise in all three of its in-home consumer packaged goods segments and Peet’s.
Considering the effects of foreign exchange and scope changes, adjusted Earnings Before Interest and Tax (EBIT) increased by 9.1%.
JDE Peet’s delivered strong performance in the first half of 2020, demonstrating the resilience of our business and brands despite the unprecedented economic and social disruption of COVID-19.
Casey Keller, JDE Peet’s CEO
The production of its in-home brands mostly offset the impact COVID-19 had on its away-from-home businesses, which represents about 25% of total sales, with total sales only decreasing by 1.1% on an organic basis.
The underlying profit, excluding non-recurring items, increased by 12% to €393 million (about £354million), due to a higher operating profit, was partly counteracted by higher tax charges.
The free cash flow of €402 million (£362 million) incorporated costs related to its initial public offering on the Amsterdam Stock Exchange and higher levels of inventory required to maintain supply continuity during the COVID-19 pandemic.
Despite an organic sales drop of 29.5%, JDE Peet’s is positive about the future of its Out-of-Home segment.
Across the business, April and May were most seriously impacted by the lockdown restrictions. However, when restrictions were gradually lifted across markets in June, it saw acceptable recovery.