Investors will soon be able to put their money in coffee and tea via the Amsterdam stock exchange. JDE Peet’s wants to go to Euronext Amsterdam. The Financial Times reported yesterday that the company wanted to go to the Amsterdam stock exchange. So now it’s official.
There are other groups that sell coffee and tea and are listed on the stock exchange, such as the Swiss Nestlé, but JDE Peet’s focuses only on coffee and tea and nothing else.
Minority on the stock exchange
New shares will be issued for 700 million euros. In addition, one of the two major shareholders, the American Mondelez, will sell shares. The other major shareholder, JAB Holdings, does not sell shares and wants to continue to hold the majority in JDE Peet’s.
This means that new investors will have relatively little to say, after all, they will be in the minority.
130 billion cups of coffee and tea
Last year, JDE Peet’s sold 130 billion cups of coffee and tea. That generated a turnover of 6.9 billion euros (+4.2 percent compared to 2018). A profit of 585 million euros was made on this.
That meant a profit drop of nearly 12 percent. Adjusted EBIT earnings (before interest and tax) increased by 7.2 percent to over 1.2 billion.
In the coming years, JDE Peet’s wants to increase its turnover autonomously (ie without the effect of acquisitions) by between 3 and 5 percent per year. The adjusted EBIT profit for exceptional items will have to grow by 5 to 8 percent per year.
The group says it is experiencing some nuisance from the corona virus, but in the first quarter sales nevertheless rose by 3.1 percent.
Although turnover from sales to the on-trade and in-house stores (representing 21 percent of the total) decreased, this was made up for by sales in supermarkets and other stores.
Adjusted EBIT gains increased double digits in the first three months of the year. Double-digit growth continued in April.
Mergers and acquisitions
JDE Peet’s stems partly from the Dutch Douwe Egberts. That company was already listed on the stock exchange in 2012, but it was soon taken over by the German JAB, the company behind the coffee brand Jacobs, which is large in Germany.
In December a merger took place with the American company Peet’s, which is active in the US with coffee and also has more than 250 stores. JDE Peet’s head office is in Amsterdam.