Lotus Bakeries faced challenges with 'unprecedented' increases in costs
Despite this the company has reported revenue growth of 14.1%, of which more than 6% is volume for the half-year of 2022. Lotus Biscoff and Lotus Natural Foods were drivers of this organic growth with sales increases of 17% and 30% respectively.
The company has also revealed that it is to start-up a new production facility for Biscoff in Asia to support its growth ambitions.
Increased costs
The business said that there were “unprecedented” increases in costs and accompanying necessary prices increases, large and urgent capacity investments that need to come onstream and increased risk of disruptions.
It also highlighted the war in Ukraine which led to increased uncertainties in energy and raw materials. It said that this also led to further rising costs across raw materials, utilities, transport and labour as a consequence.
In June the company purchased Peter’s Yard, the UK based healthy sough dough company, that produces crackers and crisps made from natural ingredients. It revealed that the brand has grown significantly over the last three years, doubling in size to £6M and it has recently expanded into the broader snacking category with sourdough bites.
Growth potential
Chief executive Jan Boone said: “Less than three years after inaugurating our Biscoff plant in the US, we announced plans to start production of Lotus Biscoff in Asia. This underlines once more our belief in the future of Lotus Biscoff and the immense growth potential in the Asia Pacific region.
"Now we have acquired the land the real work starts, but I have full confidence in the project team and we have broad experience in-house to successfully execute this milestone project.”
