Belgian snacking giant Lotus Bakeries has posted 14.1% year-on-year growth in revenue, to €416.8 million, in the first half of its financial year.
The company attributed this growth to good performance in Lotus Biscoff and Lotus Natural Foods units, which saw sales increases of 17% and 30%, respectively.
Lotus Bakeries witnessed volume growth of 6.1% in the first half despite high inflation and slowdown in economic growth.
Price increases, including positive exchange rate effects, accounted for 8% of the total growth during this period, it noted.
CEO Jan Boone [pictured] commented, “The strategic foundations of our company remain intact despite the global challenges in the short term, and allow us to realise the exceptional growth potential for both Lotus Biscoff and Lotus Natural Foods in the years to come.
"This first half year once again proves that to be true. We’ve grown by more than €50 million in just six months. And the level of operational cashflow that was generated, allowed us to invest more than €100 million in the last twelve months, while maintaining a low level of net financial debt representing less than 0.9 times REBITDA."
Lotus Biscoff witnessed double-digit growth in North America, Germany, Spain, Italy, the Czech Republic and Switzerland.
Among the Middle East and Asia-Pacific countries, the division saw double-digit growth in the Emirates, Saudi Arabia, South Korea, Malaysia, Singapore, Australia and New Zealand.
The company attributed this growth to good productivity and availability of personnel in its factories and a reliable and solid supply chain of raw materials.
Lotus Natural Foods saw double-digit volume growth, after making a recovery from the COVID-19 pandemic, with 25% growth in the second half of 2021.
Good performance by all brands in the unit resulted in a 30% increase in revenue in the first half of 2022.
Outside the UK, Lotus Natural Foods saw sales growing by more than 50%, and accounted for 30% of the division's sales.
The company's net profit increased by €3.3 million compared to the first half of 2021, amounting €51.1 million or 12.3% of revenue.
Earnings Per Share (EPS) increased by 7% to €63.01 per share, it added.
Recurring operating result REBIT increased to €68.6 million, or 16.5% year-on-year, while the recurring operating cash flow REBITDA grew by 19.8%, to €82.5 million.
Lotus Bakeries said that the macro-economic and inflation outlook is unclear and volatile in the near and medium term.
The company will continue to focus on realising its growth potential and targets.
It will continue to support margins and profitability through savings, improved operational and logistical efficiencies, product mix and pricing.