JDE Peet's coffee reports better-than-expected H1 earnings (updated)

JDE Peets NV

04/08/2020 07:03

(Adds details on results, CEO comment)
    AMSTERDAM, Aug 4 (Reuters) - Coffee company JDE Peet's
 JDEP.AS  reported a better-than-expected 10.5% rise in core
operating profit for the first half of 2020 and said it would
return to sales growth in the second half, as its markets
recover from coronavirus lockdowns.  
    The owner of brands Douwe Egberts, Peet's Coffee and Jacobs
on Tuesday reported adjusted earnings before interest (EBIT) of
642 million euros ($756 million) for the six months through June
30, up from 588 million euros a year earlier. 
    Analysts in a company-compiled poll had seen the figure at
610 million euros. 
    JDE Peet's shares have risen 22% to 38.50 euros since they
listed on the Amsterdam Stock Exchange in May, in one of the
largest initial public offerings to take place amid the COVID-19
crisis.  urn:newsml:reuters.com:*:nL8N2DB0RO
    The company said on Tuesday sales of coffee for consumption
at home in Europe, its largest business, had risen 3.7% to 1.65
billion euros. JDE also owns brands such as Pickwick, Senseo,
Tassimo, TiOra and L'OR. 
    That did not offset lost sales at its smaller business in
out of home consumption in coffee shops and restaurants. Those
fell by almost 30% to 336 million euros.
    The company's total sales fell 2.9% to 3.24 billion euros.  
 
    "Starting in June, we’ve seen a good recovery in our
away-from-home businesses as local markets begin to recover from
lockdowns," Chief Executive Casey Keller said in a statement.
    
     ($1 = 0.8494 euros)

 (Reporting by Toby Sterling; Editing by Himani Sarkar and
Aditya Soni)
 ((toby.sterling@thomsonreuters.com; +31 20 504 5002;))