JDE Peet's N.V. (JDEP.AS)

Bought this morning pre-market for 26.40 EUR after have a quick read through the 2021 results. In my opinion they are really good. Revenue up 5.3%, stable gross margins, SGA declined from 28.6% of sales to 26.6%, so that operating profit went up from 14.0% to 15.8%. Interest expense declined 121 m from 246 m to 125 m and last but not least the tax rate declined from 46.6% to 22.4 %. All this together lead to net profit that more than doubled from 367 m to 762 m EUR. PE-multiple is now 17.5. Even more impressive is Operating and free Cash Flow. Even if you eliminate the effect of WC-changes (oh boy they seem to really squeeze their suppliers) I end up with operating cash flow of 1,284 m and Free Cash Flow of 991 m EUR. Net debt declined from 5,066 m to 4,213 m which is 2.8 times EBITDA. The company went public too expensive as you can see in the Balance Sheet (Goodwill is a hefty 16,903 m EUR). But the development is really good and the company is deleveraging very fast. If you elminate Goodwill you get a really impressive ROCE. Stable and growing non-cyclical business and fastly deleveraging. Soon they will be able to either buy back shares (as long as the SP is cheap as it is at the moment) or up the dividend. I am in for the long run.