Lotus Bakeries shares jump over 6% on double digit first-half profit gains

Published 08/08/2025, 07:38
Updated 08/08/2025, 08:48
© Reuters

Investing.com -- Shares of Lotus Bakeries (EBR:LOTB) climbed more than 6% on Friday after the Belgian company posted first-half results showing underlying EBIT up 12.6% to €109.7 million and net profit rising 10.1% to €79.4 million, driven by double-digit volume gains in its Biscoff and Natural Foods segments.

Revenue for the six months ended June 30 rose 9.7% to €657.3 million from €599.3 million a year earlier. 

Price increases contributed 1.5 percentage points to revenue growth, with minimal foreign exchange impact. Earnings per share climbed 10% to €97.75. Underlying EBITDA rose 11.7% to €129.3 million, or 19.7% of revenue.

Biscoff revenue grew more than 11% on a 10% volume increase, reaching its production capacity limit for original cookies in 2025. 

The company’s strategy focuses on cookies and spread, while chocolate and ice cream products are licensed to Mondelēz. 

Co-branded chocolate bars with Cadbury, Milka and Côte d’Or ranked first or second in their categories in the United Kingdom (TADAWUL:4280) and Europe. 

From 2026, Froneri will produce and sell Biscoff ice cream in several European countries, with further rollout planned.

Natural Foods sales rose more than 16%, with all brands, BEAR, TREK, nākd, Kiddylicious and Peter’s Yard, posting double-digit growth. Sales outside the United Kingdom increased more than 30%.

BEAR fruit snacks, produced in South Africa, remained a leading U.S. kids’ fruit snack brand. TREK Protein Flapjack with Biscoff was the top innovation in its U.K. category this year. 

A new three-year deal with Golazo will promote TREK and nākd at 40 running events a year in Belgium, the Netherlands and France.

Local Heroes revenue was unchanged, as declines in Dutch gingerbread sales were offset by gains in pastry and waffles. Higher cocoa prices led to double-digit price hikes for chocolate-covered products.

Non-underlying costs totaled €3.9 million, mainly tied to the greenfield Biscoff plant in Chonburi, Thailand, which is ahead of schedule and will begin production in the second half of 2025. 

Full operations are expected by May 2026. The facility will also produce Biscoff spread, as will the company’s Mebane, North Carolina, plant, which has introduced a new bespoke spread jar that will launch globally by the end of 2026.

The financial result was a €2.2 million loss, including €1.5 million in negative foreign exchange effects. The tax expense was €24.2 million, reflecting a stable effective rate of 23.4%.

Net financial debt was €149.8 million at June 30, equal to 0.6 times EBITDA(u), down slightly from €150.1 million a year earlier. 

Capital expenditures for 2025 and 2026 are set at a minimum of €250 million, focused on capacity expansions in Europe, the Americas and Asia-Pacific. The company said a weaker U.S. dollar could reduce second-half sales by up to 1.5%.

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