Biscuit manufacturer Lotus Bakeries sold significantly more biscuits in the first half of the year. Only in the Netherlands did consumers not appreciate the price increases. The company is now investing in additional capacity.
Increasing production
In the last six months Lotus Bakeries grew by 14%, not only through price increases, but also by selling 6% more biscuits. Turnover reached 416.7 million euros. The Biscoff biscuit brand generated 17% more revenue, and the Natural Foods division with healthy snacks such as Nakd, Bear and Kiddylicious even sold 30% more than the previous year.
Price increases only spoiled the fun in the Netherlands: the gingerbread brand Peijnenburg sold less due to price increases, while Snelle Jelle stayed put. At Biscoff, Lotus is increasing capacity internationally. The company is working on additional production lines in Belgium and the US, while last week CEO Jan Boone announced plans for a caramelised biscuit factory in Thailand.
“Exceptional growth potential”
Despite rising costs, from cereals to energy, profits also increased in the first half. Recurring gross operating profit (rebitda) rose by 6.7% to 82.5 million euros, net profit increased by 7% to 51 million euros. A solid performance, according to the management, because in the first half of 2021 Lotus had already achieved a record profit.
The fact that the Belgian biscuit manufacturer made it through the difficult first half of 2022 so well gives the management confidence in its “exceptional growth potential” for the future. The company is nonetheless already warning supermarkets that anyone renewing their contract will inevitably pay higher prices.
