Lotus Bakeries NV (LOTB.BR) | Investment Case

1. Company Snapshot

1.a. Company Description

Lotus Bakeries NV provides various snack products in Belgium and internationally.The company offers biscuits and cakes, including caramelized cookies, gingerbreads, cake specialties, waffles, and pepparkakor biscuits.It also provides energy bars, protein flapjacks, protein nut bars, healthy snacks, butter specialties, ice creams, and caramelized cookies spreads.

The company sells its products under the Lotus Biscoff, Nakd, Trek, BEAR, Kiddylicious, Lotus, Dinosaurus, Peijnenburg, Snelle Jelle, Annas, Lotus Suzy, and Urban Fruit brands.The company was founded in 1932 and is headquartered in Lembeke, Belgium.Lotus Bakeries NV is a subsidiary of Stichting Administratiekantoor van Aandelen Lotus Bakeries.

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1.b. Last Insights on LOTB

Lotus Bakeries NV's recent performance was negatively impacted by capacity constraints and cost pressures, despite a 16% revenue increase in FY 2024. The company's strategic investments and expansion efforts, such as the licensing tie-up with Mondelez, have created new opportunities, but also increased operational complexity. The partnership with Froneri for ice cream production and distribution may lead to further capacity constraints and logistical challenges. Additionally, the introduction of new products combining Biscoff biscuits with Mondelez's chocolate brands may require significant marketing and distribution efforts, potentially straining resources.

1.c. Company Highlights

Last Price	7700
Change Percentage	0.39%
Open	7680
Previous Close	7670
Market Cap ( Millions)	6255
Volume	397
Year High	11160
Year Low	7230
M A 50	7776
M A 200	8148

FCF Yield	1.07%
Dividend Yield	0.99%
ROE	20.53%
Debt / Equity	36.78%
Net Debt / EBIDTA	89.48%
Price To Book	8.17
Price Earnings Ratio	39.16
Price To FCF	93.85
Price To sales	4.85
EV / EBITDA	25.96

2. Transcript Summary

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3. NewsRoom

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4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.00%)

6. Segments

Biscuits

Expected Growth: 12%

Lotus Bakeries' 12% growth in biscuits is driven by increasing demand for premium and healthier options, expansion in emerging markets, and successful product innovations. The company's focus on organic and vegan products, as well as strategic partnerships, have also contributed to its growth. Additionally, Lotus Bakeries' strong brand recognition and efficient supply chain management have enabled the company to capitalize on market trends and maintain its competitive edge.

7. Detailed Products

Biscoff Cookies

A type of speculoos cookie traditionally baked for St. Nicholas' Eve in Belgium and the Netherlands

Lotus Biscuits

A range of sweet and savory biscuits made with high-quality ingredients

Wafels

Thin, crispy wafels made with natural ingredients and no artificial additives

Cake and Pastry

A variety of sweet and savory cakes and pastries, including croissants, muffins, and quiches

Ice Cream Cones and Wafers

Crispy wafers and cones made from natural ingredients, perfect for holding your favorite ice cream

Biscuit and Cake Decoration

A range of decorations and toppings for biscuits and cakes, including sprinkles, candies, and more

8. Lotus Bakeries NV's Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Lotus Bakeries NV is moderate, as consumers have some alternatives to baked goods, such as snacks or confectionery products. However, the company's strong brand recognition and product differentiation mitigate this threat.

Bargaining Power Of Customers

The bargaining power of customers is relatively low, as Lotus Bakeries NV operates in a competitive market with many players, making it difficult for individual customers to exert significant pressure on prices or product offerings.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate, as Lotus Bakeries NV relies on a diverse range of suppliers for ingredients and raw materials. While some suppliers may have some bargaining power, the company's scale and diversification mitigate this risk.

Threat Of New Entrants

The threat of new entrants is relatively low, as the baked goods industry has significant barriers to entry, including high capital requirements, complex supply chains, and established brand recognition.

Intensity Of Rivalry

The intensity of rivalry in the baked goods industry is high, with many established players competing for market share. Lotus Bakeries NV must continually innovate and differentiate its products to maintain its competitive position.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	30.68%
Debt Cost	3.95%
Equity Weight	69.32%
Equity Cost	5.49%
WACC	5.02%
Leverage	44.27%

11. Quality Control: Lotus Bakeries NV passed 7 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Nomad Foods

A-Score: 5.7/10

Value: 8.9

Growth: 7.4

Quality: 4.6

Yield: 5.6

Momentum: 1.0

Volatility: 6.7

1-Year Total Return ->

Lerøy Seafood

A-Score: 5.0/10

Value: 4.3

Growth: 4.7

Quality: 3.2

Yield: 6.9

Momentum: 4.0

Volatility: 7.0

1-Year Total Return ->

Emmi

A-Score: 4.8/10

Value: 4.7

Growth: 4.8

Quality: 4.8

Yield: 3.1

Momentum: 1.5

Volatility: 9.7

1-Year Total Return ->

Tate Lyle

A-Score: 3.9/10

Value: 3.4

Growth: 1.1

Quality: 4.0

Yield: 8.8

Momentum: 0.0

Volatility: 6.0

1-Year Total Return ->

Lotus Bakeries

A-Score: 3.8/10

Value: 0.7

Growth: 7.7

Quality: 6.7

Yield: 1.2

Momentum: 0.0

Volatility: 6.3

1-Year Total Return ->

Glanbia

A-Score: 3.5/10

Value: 4.2

Growth: 5.0

Quality: 4.5

Yield: 4.4

Momentum: 2.5

Volatility: 0.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

14.65%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.02%

Lotus Bakeries NV - BE0003604155

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on LOTB

1.c. Company Highlights

Expensive

Strong Momentum

Higher Growth

Lower Yield

Earnings Beats

Revenues Beats

Better Quality

Weak Momentum

Earnings Miss

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (12.00%)

6. Segments

Biscuits

Expected Growth: 12%

7. Detailed Products

Biscoff Cookies

Lotus Biscuits

Wafels

Cake and Pastry

Ice Cream Cones and Wafers

Biscuit and Cake Decoration

8. Lotus Bakeries NV's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Lotus Bakeries NV passed 7 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

7700.0$

Current Price

7700$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA