AMSTERDAM (Reuters) – Coffee company JDE Peet’s reported a fall of 4.2% in annual sales on Tuesday as the impact of lost sales in cafes due to the COVID-19 pandemic outweighed a boom in home-use products.
Sales of the owner of the Douwe Egberts, Peet’s Coffee and Jacobs brands dipped to 6.65 billion euros ($7.89 billion) for 2020, just below the 6.68 billion seen in a company-compiled poll of analysts.
Adjusted operating profit (EBIT) rose 1.2% to 1.28 billion euros.
For 2021, the company forecast organic sales growth of 3%-5% in 2021, as its away-from-home businesses recover, with a “single digit” increase in adjusted EBIT.
Reflecting the impact of the pandemic, sales of packaged coffee products usually sold in grocery stores, its largest business, rose 7% in Europe, its largest market. Meanwhile sales of “Out of Home” coffee consumed in cafes, offices and schools, fell by 32%.
CEO Fabien Simon said consumers were choosing higher-quality coffee and brands perceived as environmentally friendly or local. JDE owns a range of coffee and tea brands including Pickwick, Senseo, Tassimo, TiOra and L’OR.
“I believe it will probably take 18-24 months for the Out of Home environment to return to pre-COVID levels,” Simon said, pointing to lockdowns still in place in most of Europe in the first months of 2021.
“Having said that, we do have a very powerful at-home business where cups (of coffee) have been shifted to us.”
JDE Peet’s shares first rose and then fell after it listed at 31.50 euros on the Amsterdam Stock Exchange in May, in one of the largest initial public offerings to take place amid the COVID-19 crisis..
The stock closed at 33.44 euros on Monday.
($1 = 0.8432 euros)
(Reporting by Toby Sterling; editing by Uttaresh.V and Jason Neely)