Half Year 2024 JDE Peets NV Earnings Call Transcript
Key Points
- Strong organic sales growth of 3.6%, driven by both volume mix and price increases.
- Adjusted EBIT increased organically by 17.5%, reflecting effective cost control and strategic investments.
- Free cash flow generation of EUR315 million, contributing to a reduction in net leverage to just above 3 times.
- Successful integration of recent acquisitions, Marata and Caribou, with performance in line with expectations.
- Improved full-year outlook, with expectations for higher organic sales growth, adjusted EBIT, and free cash flow.
- Continued inflation and volatility in green coffee prices, necessitating further price increases.
- Soft market conditions in the APAC region, impacting both in-home and away-from-home segments.
- Higher net financing costs due to temporary increase in debt and higher average cost of debt.
- Challenges in the Brazilian market, affecting volume mix growth in the LARMEA segment.
- Potential for further impact from retailer negotiations on volumes, though currently managed better than in previous periods.
Good morning, and thank you for joining JDE Peet's half year 2024 earnings call. My name is Caroline, and I'll be your operator for today's call. For the duration of the presentation, all participants will be in listen-only mode and the conference call is being recorded. (Operator Instructions) I would like to turn the call over to our first speaker, Robin Jansen, Director Investor Relations for JDE Peet's. Thank you.
Thank you, Caroline, and good morning, everyone, and welcome to JDE Peet's earnings call related to our financial performance of the first half year of 2024. With me, Luc Vandevelde, Interim CEO and Chair of the Board; and Scott Gray, CFO.
In a moment, Luc will take you through the operational and financial highlights related to our first half year business performance. After that, Scott will tell you more about the financial performance in the first half, and we'll update you on our outlook for full year 2024. After that, we will be happy to answer your questions.
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