Lotus Bakeries FIRST LOOK : maintaining our € 10750 TP and increasing our rating to Buy

In view of the significant volume growth Lotus Bakeries realised in FY24, the y/e consecutive volume increase of both Biscoff and Natural Foods was a testament to the strength of the different brands. The y/y increase of 1H25 REBITDA and REBIT of 11.7% and 12.6% respectively, outpace the top-line growth (9.7%) and confirms again the strength of Lotus Bakeries' operating model. The international growth engines of Biscoff and Natural Foods generate solid volume increases allowing to leverage its organisational footprint and installed production capacity. The increased marketing investments in the brands are supportive to sustainable future growth. We expect 2H25 to see the benefits of a digital media campaign for Biscoff that was initiated last year in targeted countries has been positively evaluated and was expanded in 1H25. We also welcome the continued strong cash flow generation, combined with disciplined investments in maintenance capex and working capital control further reduced year-on-year net financial debt/REBITDA ratio at 0.6 end 1H25.


Lotus Bakeries also highlighted that Biscoff greenfield in Thailand is ahead of schedule.


We maintain our € 10750 TP and increase our rating to Buy as Lotus Bakeries has maximised its Biscoff output and growth in 1H25 and the new capacity in Thailand will be instrumental to capitalise on that momentum.