Lotus Bakeries N.V.

Sales in 2025 were EUR 1.35 billion, up 10% year over year. Underlying EBITDA margin exceeded 20%, with underlying EBITDA up 12%, and net profit increased 13%; underlying net result was EUR 177 million, or 13.1% of revenue. Reported net financial debt was EUR 89 million, equal to 0.25x underlying EBITDA. Free cash flow before expansion CapEx was up 20%, cash conversion before expansion CapEx was well above 90%, and CapEx was EUR 120 million in 2025. The board proposed a dividend of EUR 90 per share, up from EUR 76 last year. For 2026, management said EBITDA and EBIT margins should be more or less in line with 2025, and CapEx for 2026-27 combined is expected to be EUR 250 million.

Jan Boone framed 2025 as another milestone year, highlighting broad-based volume-driven growth, the successful Thailand start-up, and the strategic value of partnerships with Mondelez and Froneri. He emphasized that the company is still in a growth phase, with Biscoff and Natural Foods both posting strong momentum and with India seen as a key step toward making Biscoff a truly global brand. His tone was upbeat and confident, but he also stressed disciplined investment, saying Lotus does not want to build empty factories and prefers to stay close to demand.

Mike Cuvelier said the business delivered an “in-sync flywheel” of sales, profitability and cash flow, with revenue up 10%, underlying EBITDA up 12%, and free cash flow before expansion CapEx up 20%. He pointed to strong cash conversion above 90%, CapEx of EUR 120 million in 2025, and net financial debt down to EUR 89 million, or 0.25x underlying EBITDA; he also noted nonunderlying items of EUR 4.8 million and financial results of EUR 2.4 million. He said Thailand depreciation will add about 0.5% on sales in 2026, maintenance expense stayed below 1.5% of sales, and the EUR 250 million 2026-27 CapEx plan is mainly for Biscoff and South Africa. He also highlighted that underlying EPS has compounded at 17.1% over the last five years and that the company has now delivered 25 consecutive years of dividend growth.

Analysts focused on whether Biscoff’s strong second-half growth was sustainable, how much capacity would come on line in 2026, and whether margins could keep improving. Management said demand will lead in 2026, Thailand provides added capacity, and that 2026 EBIT/EBITDA margins should be broadly in line with 2025, while acknowledging Thailand overheads and higher depreciation as headwinds. Questions on India and the U.S. drew comments that India is only two months into launch but already has distribution in more than 300,000 stores, while the U.S. is at 9% household penetration with a goal to cross 10% in the short term. Management also said A&P spending in India is mostly funded by Mondelez, with Lotus contributing a bit, and that U.S. brand support continues to be stepped up.