Lembeke / BE. (lbbv) The First half of 2023 is marked by another record sales growth of EUR 84 million and by reaching a new milestone of half a billion euro in sales. Strong pricing execution combined with a robust volume increase led to overall revenue growth of 20 percent. Strong performance was recorded For all three strategic pillars and «Lotus Local Heroes» rebounded after flat sales evolution in 2022. Lotus Bakeries Group’s strong brands, both global and local, exhibit strength and resilience against the impact of inflation on consumer spending – the Belgian Group published in its statement for H1-2023 on August 11.
«Lotus Biscoff» and «Lotus Natural Foods» brands have developed strongly in recent years proven by increased brand awareness and global household penetration. In order to sustain this growth For the years to come, in- store activation, media support and investments will continue. In targeted growth markets, the disciplined spending level of recent years will be increased. The ambition for «Biscoff» to become the #3 cookie in the world remains intact and a strategic deep-dive has Further confirmed this. However, to sustain growth in the next years, brand awareness needs to be continuously nurtured and the leaky bucket of household penetration needs to be continuously fed via the aforementioned investments.
(Table: Lotus Bakeries Group)
Responsible price increases over the last two years were inevitable to offset unprecedented and accumulating cost increases across all cost components, ranging from raw materials, packaging, co-manufacturing, Freight, utilities and labour to services. The company’s pricing strategy has always been aligned with company-specific and actual cost parameters and evolution, not with commodity-market indices and spot-market prices. Historically, it has also been company practice to hedge and capture strategically important input costs with a short or long time horizon to the extent this is possible and reasonable. This requires strong relationships with strategic suppliers based on mutual long-term visions, plans and commitments, especially in recent times of unpredictable supply and commodity inflation.
Hence, this proactive hedging policy has assured availability of supply and forward visibility and predictability of cost evolution. The successful execution of this hedging policy has been the basis for responsible and timely price advance notifications to customers, without intermediate surprises during the annual contract term. It has allowed to navigate competitively through the recent cycle of severe cost inflation and to Limit volatility and vulnerability to spiking prices. Moreover, solid volume growth and efficiency measures allow to leverage the equally necessary and sustained investments in capacity, organisation, international offices and the brands.
Expectations for the remainder of 2023 are that the overall price effect at half-year has reached its peak level. The total capital expenditures for FY-2023 are still forecasted in the range of EUR 100 million.