Lotus Bakeries (LOTB) H2 2024 earnings summary

Executive summary

• Achieved 16% revenue growth in 2024, reaching €1,232 million, driven by record volume increases and broad-based expansion across all geographies and strategic pillars.

• Net profit rose by 18% to €152.5 million, with EPS up 18% to €188 per share and a proposed dividend increase to €76 per share, up €18 from the prior year.

• Maintained strong cash flow and reduced net financial debt to 0.5x EBITDA, supporting increased dividend and over €200 million investment in expansion CapEx over two years.

• Strategic partnership with Mondelēz International to expand Biscoff in India and launch co-branded chocolate products in Europe.

• Joined BEL 20 index in March 2024 and marked 15 years of double-digit CAGR revenue growth.

Financial highlights

• Revenue up 16% year-over-year to €1,232 million; underlying EBITDA up 17% to €243 million; EBIT margin at 16.8%.

• Net profit increased by €23.2 million to €152.5 million, or 12.4% of revenue; underlying net profit at €156.3 million (12.7% of revenue).

• Earnings per share rose 18% to €188; dividend per share increased to €76, marking 24 consecutive years of dividend growth.

• Expansion CapEx in 2024 was €105 million; maintenance CapEx remained below 2% of sales.

• Net financial debt reduced to less than 0.5x EBITDA, at a two-year low of €110 million.

Outlook and guidance

• Biscoff volume growth for 2025 capped at 10% until Thai plant completion in Q2 2026; plant on track for completion.

• 2025 CapEx expected at €155 million, in line with €275 million investment program for 2024-2025.

• Low single-digit price increases expected in 2025, with higher inflation in chocolate-related products.

• Ambition for high single-digit growth for both Biscoff and Natural Foods outside the U.K.

• EBITDA margin expected to remain between 19%-20% as brand investments continue.