JDE Peets 1H25 results confirm coffee's positioning as a staple good

Last week Wednesday, JDE Peet's surprised with a strong set of 1H25 results, with the vol/mix increasing 1.0% despite a significant price increase of 21.5%. While the vol/mix effect was positively impacted by around 2-3% from customers pre-buying ahead of further anticipated price hikes, the underlying price elasticity remains resilient. This reconfirms coffee's positioning as a staple good. While price elasticity is expected to slightly deteriorate in 2H25, it should remain at healthy levels. After increasing our estimates in line with the new outlook, we increase our rating from Hold to Accumulate and up our TP from € 25.0 to € 27.0 ps.