JDE Peet’s saw organic sales surge 22.5% to €5.05 billion in the initial half of 2025, powered mostly by higher prices and steady demand. The company’s sales strategies leaned heavily on selective price adjustments to offset inflationary pressures while keeping products affordable. Raising prices by 21.5% helped compensate for green coffee costs, which soared over 60% compared to 2024. As coffee roasters know, the moisture content critically affects roasting, which can influence overall coffee flavor and quality. Additionally, the company was mindful of the soil pH adjustment needed for optimal coffee growth, ensuring that their sourcing reflects best practices in coffee farming.
Despite steep inflation, consumer behavior showed resilience, with a 1.0% increase in volume and mix reflecting continued purchasing even as costs climbed. The balance between pricing power and accessibility kept coffee within reach for households, avoiding significant demand erosion.
Even amid inflation, 1.0% volume growth reflected resilient demand, balancing price increases with accessibility to sustain household coffee consumption.
Reported sales grew 19.8% for the period, though gross profit fell 8.7% due to raw material inflation. Adjusted gross profit still edged up 2.2% to €1.67 billion, suggesting some cost-control success. Operating profit plunged 40.2%, underlining the strain of higher expenses.
Still, JDE Peet’s maintained stable cash flow, generating €565 million in free cash flow during H1. It also reduced debt, with a net debt ratio of 2.5x, and bought back 38% of a planned €250 million in shares. Leadership highlighted “operational efficiencies” as a buffer against margin pressures. The company also accelerated factory closures and restructuring, such as shutting down its Banbury site in the U.K., to streamline costs and improve supply chain agility.
New products like Peet’s Popping Pearls and L’OR Coconut Iced Espresso diversified offerings, targeting evolving consumer preferences. Innovations aimed to create new coffee occasions—like ready-to-drink formats or flavored blends—which supported volume growth. The newly launched “Reignite the Amazing” strategy focuses on strengthening Peet’s, L’OR, and Jacobs as core brands while targeting €500 million in cost savings by 2027. Strategic business realignment simplified operations, redirecting resources toward higher-margin segments.
CEO Fabien Simon praised the focus on “profitability and topline growth,” noting price hikes weren’t the only driver. Persistent challenges loomed. Global green coffee prices remained high, though costs showed signs of easing late in H1. The company raised its full-year forecast, expecting organic sales growth in the high teens and banking on continued demand resilience.
With 75% growth in underlying earnings per share, JDE Peet’s signaled confidence in its ability to navigate volatility. Even in a fraught market, coffee drinkers didn’t cut back—and the world’s largest pure-play coffee company capitalized on that loyalty.
