Pret A Manger owner JAB swung back to profit in 2025 after booking an estimated £4.5bn gain from the sale of its stake in JDE Peet’s.

The investment group reported net profit of roughly £600m for the year, marking a turnaround from the heavy losses recorded across its consumer portfolio in 2024.

JAB, which also owns Panera Bread, Bagel Brands and Caribou Coffee, said the disposal of its majority stake in the coffee giant helped offset weaker valuations elsewhere in the portfolio, including beauty group Coty and doughnut chain Krispy Kreme.

The group, which manages the wealth of Germany’s billionaire Reimann family, has been reshaping its investment strategy away from consumer-facing brands and towards insurance, after inflation and changing customer habits weighed on its food and drink assets.

Last year, JAB reported a loss of about £7.5bn linked to its consumer investments, underlining the pressure facing parts of its portfolio despite the strength of major brands such as Pret.

The turnaround comes after Keurig Dr Pepper agreed to acquire JDE Peet’s in a deal worth around £13.7bn, valuing the coffee business at roughly £27.75 per share. JAB had held a 68 per cent stake in JDE Peet’s and will retain a 5 per cent stake in the enlarged business.

JAB said the deal would significantly reduce its debt burden, with net debt expected to fall from around £7.8bn to about £1.5bn once the transaction completes.

The group is also considering future public listings for several of its private assets, including Pret A Manger, Panera Bread and pet health business National Veterinary Associates, although no timeline has been confirmed.

JAB’s latest results highlight both the ongoing volatility in consumer-facing food and beverage businesses and the company’s efforts to rebalance towards areas offering stronger long-term growth.

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