Belgian biscuit producer Lotus Bakeries has achieved record growth last year, and it was not just because of price increases. This year, the biscuit maker expects to sell even more biscuits, courtesy of a new factory.
Higher prices, higher volume
Lotus ended 2022 with record sales of 877.5 million, thanks to a whopping 17 % growth. Its Biscoff branch grew by a quarter, the Natural Foods division by 24 %. The biscuit producer thus also managed to slightly exceed expectations.
CEO Jan Boone is proud of the “absolute record growth”, especially as it was almost equally divided between price increases (due to inflation) and volume growth. The Belgian group sold 8.1 % more biscuits, while prices increased by 8.9 %.
Continuing to invest
At the same time, Lotus put a record amount (153 million euros) into investments last year. This year, a new Biscoff plant will open in the United States, while last year the company also bought land for an additional plant in Thailand to be operational by 2026. In addition, there was the acquisition of cracker manufacturer Peter’s Yard. Despite all these investments, profits still climbed 13.8 % to 103.3 million euros.
In 2023, Boone plans to continue investing unabated. The new plant in the United States should earn Lotus 5 % more volume. Prices will also continue to rise this year, as inflation continues, but the CEO says those price increases must remain “fair and responsible”: “At the end of the day, we want to keep our products affordable.” So Lotus will also continue to cut costs.
