JDE Peet's 2022 core profit slips 6% as costs outweigh higher prices
AMSTERDAM (Reuters) - JDE Peet's NV, one of the world's largest coffee companies, on Wednesday reported a slightly larger-than-expected 6% fall in full-year core profit last year, but projected a return to growth for 2023.
Adjusted earnings before interest and taxes (EBIT) dropped to 1.22 billion euros ($1.30 billion) last year, from 1.3 billion euros a year before, as rising marketing costs outweighed higher prices.
Sales jumped 16% to 8.15 billion euros as surging inflation drove up prices, while sales volumes slipped 4%.
Analysts in a company-compiled poll on average had expected a fall in core profit to 1.26 billion euros, on 8.24 billion euros in sales.
The company said the drop in core profit was mainly due to a 10% increase in marketing and innovation investments, and projected "low single digit" growth in adjusted EBIT for 2023 with organic sales growth at the high end of its medium-term range of 3 to 5%.
"We are emerging stronger for 2023, with an elevated growth portfolio, a competitive market share position, a well invested business and a more productive enterprise," Chief Executive Fabien Simon said in a statement.
JDE Peet's shares opened trading virtually unchanged in Amsterdam on Wednesday.
($1 = 0.9391 euros)
(Reporting by Bart Meijer; Editing by Jan Harvey)