High-quality growth, elevating the power of the company portfolio
Key items1
• FY 21 organic sales up +6.1%, accelerating to +7.9% in H2
• Deliberate increase in investments for growth (>EUR 110 mln), self-funded by gross profit up +5%
• Solid market shares, while leading on price increases in the majority of geographies and categories
• Organic adjusted EBIT up +1.5% to EUR 1,304 million
• Free cash flow increased to EUR 1,368 million and leverage reduced to below 2.7x
• Underlying EPS up +13.7% to EUR 1.79
• Stepping up the progress on sustainability and raising the ambition
• Proposal to pay a cash dividend of EUR 0.70 per share in two equal instalments
A message from Fabien Simon, CEO of JDE Peet’s
“I am very pleased with JDE Peet’s' performance in 2021. We delivered on all our commitments, in a highquality way, in another year of unexpected global disruptions. I would like to thank our teams and partners for
their resilience and exceptional agility in managing the challenging operating conditions.
2021 marked the year where we refocused on our founding entrepreneurial values. We set out our new
strategic framework, re-invested in our powerful portfolio, and reinforced our operational discipline, including
taking the lead on pricing in the majority of our markets. As a result, our organic sales growth accelerated, the
absolute margin per cup increased, so did the free cash flow generation.
In parallel, we stepped up our commitment to an inclusive growth model, with tracking and tangible progress
on sustainability as well as a higher ambition going forward. Finally, we further strengthened our financial
position and capital structure.
This year, we became a nimbler global coffee & tea pure player and our brands emerged stronger. This gives
me confidence that JDE Peet’s can successfully navigate an unprecedented year of inflation in 2022.”
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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 7 of this press release.
Advancing on Sustainability
JDE Peet's' sustainability strategy is built on three pillars: Common Grounds, to contribute to thriving
agricultural supply chains; Minimised Footprint, to reduce its environmental impact; and Connected
People, to engage the company's employees and its communities.
Under its Common Grounds programme, the company increased the number of smallholder farmers that
were reached since 2015 to more than 470,000 through more than 50 collaborative projects across 18
countries, despite the pandemic. This also supported the increase in the share of coffee, tea and palm oil that
were responsibly sourced in 2021. As such, the company is well on its way to have 100% of the company's
coffee, tea and palm oil responsibly sourced by 2025.
JDE Peet's also made good progress in reducing its footprint. The company increased the share of packaging
designed to be reusable, recyclable or compostable to 88% and achieved 40% recycled content in
packaging, reaching its target ahead of time. In addition, its entire European manufacturing network plus five
other manufacturing sites reached zero-waste-to-landfill status and overall manufacturing waste reduced by
15%.
Commitment to SBTi-approved targets to reduce GHG emissions
JDE Peet's has set SBTi-approved targets to reduce GHG emissions in its own operations and across its
value chain, in line with the Paris Agreement commitment to limit warming to well-below 2°C. JDE Peet's has
committed to reduce absolute GHG emissions for scope 1 & 2 by 25% and for scope 3 by 12.5% by 2030,
from its 2020 base year. In 2021, GHG emissions across scope 1, 2 and 3 reduced by 5%.
Outlook 2022
JDE Peet's expects the business environment in 2022 to remain volatile as input cost inflation and some
effects of COVID-19 might persist. Within this context, the company expects to deliver double-digit organic
sales growth, with disciplined pricing for inflation, while aiming for a stable level of gross profit compared to
last year. The company will continue to invest in its people and strategic growth opportunities, while keeping a
tight focus on other cost items, and expects to deliver Free Cash Flow of at least EUR 1 bn.
Medium- to Long-Term Targets
For the medium- to long-term, JDE Peet's continues to target organic sales growth of 3 to 5% and mid-singledigit organic adjusted EBIT growth with quality margins, and a free cash flow conversion of approximately
70%.
Dividend
JDE Peet's' Board proposes to pay a dividend of EUR 0.70 per share in cash related to FY 21. The dividend
will be paid in two instalments of EUR 0.35 each. The first payment date will be on Friday 15 July 2022, with
the ex-dividend date on Monday 11 July 2022 and the record date on Tuesday 12 July 2022. The second
payment date will be on Friday 27 January 2023, with the ex-dividend date on Monday 23 January 2023 and
the record date on Tuesday 24 January 2023. The dividend proposal is subject to approval by the Annual General Meeting of Shareholders to be held on Wednesday 11 May 2022.
FINANCIAL REVIEW FULL-YEAR 2021
in EUR m (unless otherwise stated)
FY 2021 FY 2020 Organic change Reported change
Sales 7,001 6,651 6.1 % 5.3 %
Adjusted EBIT 1,304 1,278 1.5 % 2.0 %
Underlying profit for the period 899 787 - 14.2%
Underlying EPS (EUR) 1, 2 1.79 1.57 - 13.7%
Reported basic EPS (EUR) 1.53 0.80 - 90.6%
1
Underlying earnings (per share) exclude all adjusting items (net of tax)
2
Based on 501,951,089 shares outstanding (FY 20: 499,709,030) on 31 December 2021
In FY 21, total sales increased by 6.1% on an organic basis. The In-Home business continued to deliver
strong organic sales growth of 5.0% while sales in Away-from-Home increased by 11.5% as the positive
effects of (partial) re-openings in most regions more than offset the negative effects of new waves of
lockdown measures, most notably in the second half of the year.
Total organic sales growth reflects a volume/mix effect of 3.5% and 2.5% in price. Changes in scope and
other changes increased sales by 0.2% while foreign exchange had a negative impact of 1.0%. Total reported
sales increased by 5.3% to EUR 7,001 million.
Adjusted EBIT increased organically by 1.5% to EUR 1,304 million driven by a 5.4% organic increase in
adjusted gross profit which was partially offset by reinvestments in marketing, innovations and other strategic
growth capabilities which included an organic increase in marketing spend of 27%, or EUR 87 million.
Including the effects of foreign exchange and scope changes, adjusted EBIT increased by 2.0%.
Underlying profit - excluding all adjusting items net of tax - increased by 14.2% to EUR 899 million. It includes
an underlying tax rate of 25% and was supported by lower interest expenses as a result of deleveraging and lower average cost of debt, as well as a reduction of other finance expenses.
Net leverage improved to 2.67x net debt to adjusted EBITDA from 3.23x at the end of FY 20.
Our liquidity position remains strong, with total liquidity of EUR 2.1 billion consisting of a cash position of EUR 0.6 billion and available committed RCF facilities of EUR 1.5 billion.
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tijd 13.28
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