JDE Peet's (JDEP) H2 2024 earnings summary

Executive summary

• Delivered strong, broad-based 2024 results, exceeding upgraded guidance with robust sales, profit, and free cash flow growth.

• Successfully integrated Maratá and Caribou acquisitions, restoring net leverage to 2.73x by year-end.

• Launched innovative, sustainable products and packaging, reinforcing consumer relevance and sustainability commitments.

• Sustainability achievements recognized by Dow Jones Best-in-Class World Index and significant GHG emissions reduction.

• Announced CEO transition and CFO succession, with Yang Xu to succeed Scott Gray in May 2025.

Financial highlights

• Organic sales grew 5.3% year-over-year; reported sales up 7.9% to EUR 8.8 billion.

• Adjusted EBIT up 10.4% organically to EUR 1.3 billion; adjusted gross profit up 6.1%.

• Free cash flow exceeded EUR 1 billion, with FCF conversion at 67%.

• Underlying EPS EUR 1.50; basic EPS increased 51.3% to EUR 1.15; reported profit up 49.2% to EUR 543 million.

• Net leverage stable at 2.73x; total liquidity at EUR 2.7 billion; average cost of debt 1.32%.

Outlook and guidance

• 2025 outlook: high single-digit organic sales growth expected.

• Adjusted EBIT projected to decline organically by low single digits, with results weighted to the second half.

• Free cash flow target of around EUR 1 billion, second-half weighted.

• Proposed 4.3% dividend increase to EUR 0.73 per share, to be paid in two installments.

• EUR 250 million share buyback planned for 2025 as part of a EUR 1 billion multi-year program; no proactive M&A planned.