(Reuters) – JDE Peet’s, one of the world’s largest coffee companies, forecast 2024 organic sales growth at the low end of its mid-term target on Wednesday, in line with expectations, after it posted surprise growth in last year’s earnings.
The maker of coffee brands Jacobs, L’Or, Tassimo and Douwe Egberts expects annual organic sales growth to be at the lower end of its medium-term range of 3% and 5%, while analysts were expecting 3% growth according to a company-provided consensus.
“We concluded 2023 with a very strong second semester, marked by an acceleration of JDE Peet’s organic top line and adjusted EBIT growth. We are back to our long-term profitability algorithm, excluding Russia’s performance,” CEO Fabien Simon said in a statement.
The group posted adjusted earnings before interest and taxes of 1.13 billion euros ($1.22 billion) for 2023, down 8.1% on a reported basis but up 1.1% organically. Analysts had expected a 1.8% organic decline.
Excluding activities in Russia, core profit increased organically by more than 6% in 2023.
In 2022, the operating profit fell 9.3% organically.
($1 = 0.9251 euros)
(Reporting by Stéphanie Hamel and Gaëlle Sheehan; editing by Milla Nissi)
