The Amsterdam-based coffee and tea group has pledged to ‘absorb as much cost inflation as possible’ after raising prices 4.5% last year
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JDE Peet’s has forecast soaring coffee prices leading to a small decline in full-year adjusted EBIT in 2025 | Photo credit: JDE Peet’s
Price rises enabled JDE Peet’s to offset the soaring cost of green coffee in 2024, but the coffee and tea giant has pledged to limit further hikes for consumers in the year ahead.
The Amsterdam-based group achieved 7.9% year-on-year sales growth in the 12 months ended 31 December 2024 to reach €8.8bn ($9.2bn). Adjusted EBITDA increased 11% year-on-year during the period to €1.6bn ($1.7bn) with total operating profit up 54% to €1bn ($1.1bn).
In a press release, the maker of the Jacobs, L’Or, Tassimo and Douwe Egberts coffee brands said organic sales growth was driven by a 4.5% price increase across its products.
Noting historic green coffee prices over the last 12 months, JDE Peet’s said it will ‘continue to be disciplined on pricing’ and is planning to implement a range of productivity and efficiency measures to absorb as much cost inflation as possible, passing on ‘only what is unavoidable’.
“We are very pleased with this strong set of broad-based results, especially considering the increased green coffee inflation. Our strong 2024 performance positions us well for 2025 and beyond, with stronger foundations and positive momentum,” said Rafael Oliveira, CEO, JDE Peet’s.
Annual sales growth was highest for JDE Peet’s whole bean product category, where it achieved double-digit growth, with coffee capsules and instant posting a high-single-digit increases and roast and ground coffee mid-single-digit growth.
Sales in Europe, which account for 53% of JDE Peet’s total revenues, increased 1% to €4.7bn ($4.9bn) with the UK, Ireland and the Nordic markets among the highest performing during the period. However, volumes in the region declined 1% due to contract disputes with retailers over price hikes, including Belgian supermarket chain Colruyt and Germany’s Edeka.
JDE Peet’s revenues in LARMEA (Latin America, Russia, Middle East and Africa) grew 32% year-on-year to €2bn ($2.1bn), boosted by the acquisition of Brazilian coffee and tea business Maratá’s in January 2024. Sales in Asia Pacific increased 1% to €796m ($835m).
US specialty café chain Peet’s Coffee achieved 9% year-on-year sales growth to €1.2bn ($1.3bn) with like-for-like sales and average ticket size up across its 287 US stores. The California-based coffee roaster and operator also delivered strong double-digit growth in China, where it has more than 200 outlets.
JAB Holding Company-backed JDE Peet’s has forecast high-single-digit sales growth in 2025 but is expecting a small decline in full-year adjusted EBIT amid soaring coffee prices.
In January 2025, JDE Peet’s announced that Chief Financial Officer Scott Gray, who also served as Interim CEO last year, had stepped down to relocate with his family to the US. The coffee and tea group has announced that Yang Xu has joined the business from Switzerland’s Straumann Group to fulfill the role. Yang previously worked with JDE Peet’s CEO Oliveira at US food and beverage giant Kraft Heinz, where she served as Head of Corporate Development and Global Treasurer.