In This Article:
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Revenue Growth: 16% increase, driven by EUR150 million in bulk growth.
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EBITA Margin: 19.7% of sales.
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Net Results: Increased by 18%.
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Dividend Proposal: EUR76 per share, an increase of EUR18 per share.
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Compound Annual Growth Rate: 11.6% over the last 15 years.
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Lotus Bakeries Revenue: Surpassed EUR600 million, with more than 20% growth.
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Natural Foods Turnover: EUR250 million, with 16% growth.
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Free Cash Flow Before Expansion CapEx: Up by 15%.
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Net Financial Debt: Reduced to less than 0.5 times EBITA.
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Earnings Per Share: Increased by 18% to EUR188 per share.
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Expansion CapEx: EUR105 million in 2024.
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Net Profit: EUR152.5 million, or 12.4% of revenues.
Release Date: February 06, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Lotus Bakeries NV (LOTBY) achieved an impressive topline growth of 16% in 2024, driven by strong performance across multiple countries.
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The company recorded a record volume growth of EUR150 million, marking an exceptional year in terms of volume.
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Lotus Bakeries NV (LOTBY) reported a strong EBITA margin of 19.7% of sales, enabling significant investments over the past two years.
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The company's net results increased by 18%, allowing for a proposed dividend increase to EUR76 per share.
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Lotus Natural Foods segment experienced a 16% growth, with all five brands achieving double-digit growth in 2024.
Negative Points
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There are capacity constraints for Biscoff cookies, with a maximum output increase of only 10% possible for 2025.
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The company faces potential cost pressures from rising chocolate prices, which could impact products like chocolate-covered waffles.
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Administrative costs have increased, partly due to expansion and marketing investments, impacting overall cost structure.
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There is a risk of potential tariffs affecting imported products like Bear in the US, which could impact cost competitiveness.
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The company is experiencing capacity constraints for sandwich cookies, which are currently only produced in Belgium.
Q & A Highlights
Q: Can you explain where the additional capacity for Biscoff cookies comes from for 2025, and does this include the new Thai facility? A: The additional capacity for Biscoff cookies in 2025 will be a maximum of 10% based on current efficiencies and market demands. This does not include the Thai facility, which will be fully operational in the second quarter of 2026, providing further capacity for growth.
Q: With raw material costs stabilizing, should we expect stable costs versus sales in 2025, or will there be increases due to factors like gas prices? A: For 2025, we anticipate a slight inflation, particularly in chocolate prices, which will affect products like our chocolate-covered items. However, overall, the cost impact will be minimal, with most growth linked to volume increases.