JDE Peet's raises 2024 guidance after H1 beat, shares soar 20%
Updates lead with share move, adds Jefferies comment in paragraph 3
By Stephanie Hamel
July 31 (Reuters) -Coffee and tea company JDE Peet's JDEP.AS raised its full-year sales growth forecast on Wednesday, after beating half-year expectations, sending shares as much as 20% higher in early trading.
The maker of coffee brands Jacobs, L'Or, Tassimo and Douwe Egberts said it expects full-year sales growth at the higher end of its previous forecast of 3% to 5%.
Jefferies analysts highlighted the better-than-expected revenues and profit in a note, stressing the stock's weakness until today, down 24% year to date up to the previous session's close.
It posted 3.6% organic sales growth for the first half of the year, beating the 2% expected by analysts in a consensus provided by the Amsterdam-based company.
It saw organic growth of 1% in Europe, its biggest region, while prices fell by 0.4%.
Notable was 11.8% growth in its LARMEA market made up of Latin America, Russia, the Middle East and Africa.
That reflected the integration of Brazil's Marata brands, acquired last year, and price increases to offset rising green coffee prices, it said.
Still, organic adjusted earnings before interest and taxes (EBIT) in the region fell 10.1% due to "transactional forex impact and the carry-over effect of the brand transition in Russia in 2023", it said.
The group announced last year it would only sell coffee and tea in Russia under local brands.
Group adjusted EBIT rose to 692 million euros ($749 million) from 581 million a year earlier and beating the 601 million expected by analysts.
"I am very pleased with this strong set of results for the first half of 2024 ... despite operating in a challenging environment," interim CEO Luc Vandevelde said in a statement.
Vandevelde pointed to rising green coffee prices and growing demand for more affordable offerings.
Coffee prices steadied near recent peaks earlier this month, underpinned by supply tensions in top producers Brazil and Vietnam.
($1 = 0.9239 euros)
Reporting by Stéphanie Hamel; Editing by Savio D'Souza, Jason Neely and Conor Humphries
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