Coffee price hikes sends JdE Peet profit up 50% to €900 million
JDE Peet’s, the parent company of Douwe Egberts, hiked its net profit by almost half in 2024, largely due to higher coffee prices. The company recorded a net profit of 543 million euros, 49.2 percent more than a year earlier. Turnover increased by 5.3 percent to 8.8 billion euros, the JDE Peet’s announced on Wednesday.
The company said that coffee bean prices have “surged to historic highs” due to atypical weather in key coffee-growing countries, supply chain disruptions, and other geopolitical factors, and that is unlikely to change soon. It said that it would only pass on “unavoidable” costs in price increases to maintain “affordability for our consumers.” Instead, the group will implement several productivity and efficiency measures to tackle cost inflation.
JDE Peet’s has been clashing with Dutch supermarket chains Albert Heijn and Jumbo over its price hikes, resulting in empty shelves where coffee lovers were used to finding their Douwe Egberts. The company didn’t mention the progress of these negotiations when reporting its results on Wednesday.
CEO Rafa Oliveira said he was “very pleased” with the results achieved in 2024. “Our strong 2024 performance positions us well for 2025 and beyond, with stronger foundations and positive momentum. Therefore, we propose to increase the dividend by 4.3%,” he said.
