FY25 - Lotus Bakeries - Full Analysis
10% reported top-line growth, margin expansion & higher CAPEX outlook for FY26 - FY27 - raising our estimates
Before the bell, Lotus Bakeries reported its full-year 2025 report. At 2 PM (Brussels Time), the management team gave additional commentary on the financial results, key milestones, and what is (or could be) next. Currently, shares are up 3%.
We’ve shared a comprehensive in-depth report last August. As we’re Belgium-based, there’s some chauvinism in here but it’s very well placed 😉.
Putting everything together, it’s fair to say that CEO (and majority shareholder) Jan Boone and CFO Mike Cuvelier had completely sandbagged the FY25 guidance that was presented early 2025. Notwithstanding the increased marketing efforts to launch Biscoff in India and dilution from the newly opened Thailand factory, underlying profitability expanded nicely.
With the ongoing expansion in Thailand and all other production plants, the future remains extremely bright. Following the report, we’ve nudged our mid-term estimates up.
Interesting statistic to start the discussion on its financial and strategic performance: Lotus became a “Dividend Aristocrat”, having increased the recurring cash payment to shareholders by 25 years in a row now. The gross dividend yield on the IPO price (early 2000) is now a staggering 130%. That’s what steady compounding can do to the patient investor’s portfolio.