JDE Peet's N.V.

In H1 2025, JDE Peet's reported sales of EUR 5 billion, adjusted gross profit of EUR 1.7 billion, adjusted EBIT of EUR 709 million, and free cash flow of EUR 565 million. On an organic basis, sales grew 22.5%, adjusted gross profit rose 2.2%, and adjusted EBIT increased 2%. Underlying EPS excluding the equity-swap fair value change increased 3.4% to EUR 1.02; including that effect, underlying EPS was EUR 1.33 versus EUR 0.76 in H1 2024. Management said H1 inflation at the cost base was about EUR 800 million and full-year cost inflation is expected to be around EUR 1.6 billion. For the full year 2025, the company now expects organic sales growth in the high teens, adjusted EBIT to be at least stable on an organic basis, and free cash flow of around EUR 1 billion.

Rafa Oliveira said the first half showed strong broad-based performance across top line, profitability and cash, especially given persistently high green coffee prices. He emphasized disciplined pricing, productivity, and efficiency as the way the company protected gross profit while continuing to invest behind growth. His tone was confident and strategic, highlighting momentum from the new brand-led strategy, simplification efforts, and innovation across Peet's, L'OR and Jacobs-led brands.

Yang Xu said the H1 sales increase to EUR 5 billion reflected pricing more than volume, with 21.5% pricing and 1% vol/mix, while FX reduced sales by 2.8% mainly due to the Brazilian real. He noted adjusted EBIT of EUR 709 million and free cash flow of EUR 565 million, with working capital a cash outflow because inventories rose on higher green coffee prices and receivables increased with higher sales. On capital allocation, he said EUR 243 million was returned to shareholders, net debt fell by EUR 337 million, and net leverage improved to 2.5x; the company also reiterated a target of 2x leverage over time and said 38% of the EUR 250 million 2025 buyback had been completed by July 25. He also pointed to a large mark-to-market swing in derivatives of a little more than EUR 140 million as a major adjustment item this half.

Analysts focused on whether remaining pricing talks could trigger delistings, why EBIT guidance was raised but cash flow guidance was not, and how much further pricing would be needed in H2 given continued inflation. Management said there were no delistings tied to the negotiations, that 87% of global sales had already been covered, and that H2 pricing would be roughly similar to H1, with mid-teens price increases still needed. On cash flow, Yang said the EBIT upgrade is only worth tens of millions versus a business that has averaged around EUR 1 billion of annual free cash flow, so the EUR 1 billion guidance remains intact. Questions on tariffs and Brazil sourcing were answered by saying the 50% Brazil tariff would affect the whole industry, JDE Peet's is less exposed than some peers because less than 30% of its coffee comes from Brazil, and sourcing changes would not materially solve the industry-wide issue.