Global cake and waffle manufacturer Lotus Bakeries has achieved 14.1% revenue growth as subsectors of the company implement price rises on products, the company’s half year results have revealed.
The manufacturer joins companies such as Heinz and Nestlé, who have both reported strong quarterly results amid ongoing inflationary pressures.
According to the latest Kantar figures, grocery price inflation hit 11.6% at the beginning of August.
More than 6% of the company’s revenue growth is attributed to volume. Despite the global challenges of high inflation and slowing economic growth, Lotus grew volumes by 6.1%.
Its Lotus Biscoff and Natural Foods brands were both strong drivers of organic growth with 17% and 30% revenue growth respectively. Recurring EBITDA rose by almost 7% to EUR 82.5 million, or 19.8% of revenue.
Lotus Biscoff said that it had implemented price increases across its range and that data suggested “consumers remain loyal to the unique Biscoff taste.” Similarly, its Lotus Natural Foods brand “made a strong recovery” from the impacts of the Covid-19 pandemic.
Net financial debt remains low at less than 0.9 times recurring EBITDA despite “a historically high investment amount” of over EUR 100 million in the last 12 months.
The latest financial update comes as Lotus Bakeries has recently revealed plans in Asia for a third Biscoff plant.