Market Performance Overview
Lotus Bakeries reported a 16% increase in sales for 2024, driven by growth across its three strategic business segments. The company achieved this performance while managing production capacity and investing in future expansion.
Furthermore, the net financial debt was reduced to 0.5 times EBITDA and they invested over EUR 120m in capacity expansion. Shareholders can expect a dividend increase of EUR 18, bringing the total to EUR 76 per share.
Partnership with Mondelēz International
A significant milestone in 2024 was the strategic partnership with Mondelēz International, announced in June. The collaboration focuses on two key areas: expanding the Biscoff brand in India and developing co-branded chocolate products in Europe. The partnership aims to combine Biscoff's unique cookie with Mondelēz's iconic chocolate brands like Cadbury and Milka.
For the Indian market, teams are collaborating to define the product portfolio and pricing strategy, ensuring the Biscoff cookie maintains its quality in a new market. Both companies have committed to joint marketing efforts to support the brand's introduction in India.
In Europe, cross-company teams are developing co-branded chocolate products. The first Cadbury co-branded chocolate tablets are set to launch in the UK by the end of March 2025, with Milka co-branded products expected to follow soon after in several European markets.
Biscoff Brand Expansion
The Lotus Biscoff brand reached a significant milestone, surpassing EUR 600m in revenue for the first time. With 20% volume growth, the brand has approached production capacity limits. Management plans a controlled 10% volume increase in 2025, reflecting a cautious approach to scaling.
Strategic Production Investments
A key strategic move is the new production facility in Chonburi, Thailand, scheduled to be operational by the second quarter of 2026. This expansion addresses capacity constraints and supports growth in the Asia-Pacific region.
Natural Foods Division Performance
The Lotus Natural Foods division continued its market performance, delivering double-digit volume growth. Brands including BEAR, TREK, nākd, Kiddylicious, and Peter's Yard have maintained a 17% compound annual growth rate since 2015, quadrupling like-for-like sales. The division has refined its strategy to focus on core markets and target consumers.
Local Market Segment
The Lotus Local Heroes segment contributed mid-single-digit sales growth, with products like Cake Donuts, Liège Waffles, and Annas pepparkakor maintaining the company's presence in traditional market segments.
Leadership Perspective
CEO Jan Boone noted the company's performance in the context of challenging market conditions. The stated objectives include positioning Lotus Biscoff as a top three global cookie brand and maintaining leadership in the better-for-you snacking sector.
Future Outlook
The company's investment in the Wolseley plant in South Africa demonstrates continued focus on production capacity and sustainability. With 3,364 employees, Lotus Bakeries is positioning itself for continued development in the global bakery market, with the Mondelēz partnership presenting significant growth opportunities
