La Lorraine: delivered a solid performance in 2023

Ninove / BE. (lbg) La Lorraine Bakery Group (LLBG) realized a revenue of 1.36 billion EUR in 2023. This strong revenue growth of 16 percent is driven by investments in new production capacity in Europe and innovations in its core product categories. The REbitda margin as a percentage of revenue was 13.9 percent, a strong recovery after a more difficult year of strong inflation in 2022. Sustainability remains a key pillar of LLBG’s strategy, with a first significant reduction of its carbon footprint.

By 2028, LLBG aims to grow sales in Europe, Turkey and the Middle East by more than 50 percent, through strong innovation while reducing its ecological impact. Group CEO Guido Vanherpe: «To achieve this ambition, LLBG employees are crucial. In 2024 alone we plan to recruit 400 additional employees, 100 of them in Belgium, and roll up our sleeves together to make a difference.»

La Lorraine Bakery Group continues healthy growth in 2023

In 2023, La Lorraine Bakery Group achieved solid revenue growth of 16 percent compared to 2022, reaching 1.36 billion EUR, thanks to ambitious investments in new production capacity in Western and Central Eastern Europe and in strong innovations in its core product categories such as small artisan breads (rose rolls) and Beignets (DoNutWorryBeHappy Bites).

(Photo: La Lorraine Bakery Group)

The group REbitda amounted to 189 million EUR in 2023, up 38 percent compared to 2022. This growth is explained by the recovery from the impacts of the highly inflationary 2022, in which the company’s margins were put under strong pressure. Its Russian business was also set on non-active that year. This allowed the company to recover to historical levels: the 2023 REbitda margin, as a percentage of revenue, was 13.9 percent, compared with 11.7 percent in 2022 and 14.0 percent in 2021.

2023 was another record year with an investment budget of 184 million EUR, to create new capacity with state-of-the-art artisan bakery lines as well as top-quality sweet-on-the- go production lines (including doughnuts). Most of these investments will go to new factory halls, production lines and high-bay warehouses. Key projects were realized in Erpe-Mere, Romania, the Czech Republic and with joint venture partners in Greece and Italy. LLBG also renewed the patisserie ateliers in Ostend and Alken (Belgium).

«Baking a better world together»

In 2022, LLBG has made sustainability an integral part of its next five-year strategy, with clear and bold ambitions for 2027.«Growth and impact go hand in hand at LLBG: as we become a bigger and better company, our positive impact on the planet and society increases. And as we become more sustainable, this will also lead to accelerated growth of our business. In short, «baking a better world together» is what our 5,000 employees get up for every day with great enthusiasm,» says Group CEO Guido Vanherpe.

Some sustainability highlights of 2023

Clear ambitions for 2024

For 2024, LLBG expects another year of continued revenue growth, driven by an ambitious investment program in new production capacity in Western + Central Eastern Europe, Turkey + the Middle East, which will be accompanied by significant quality improvements and innovations in its strategic product categories. The company will be able to realize additional growth thanks to its recent joint venture Backunion in Germany and Kristiania Gourmet in Norway. The group REbitda is expected to grow in line with volume growth and efficiencies as a result of economies of scale.

«Our biggest challenge for 2024 remains to successfully realize our strong growth ambition through timely execution of our future-oriented investment program of about 200 million EUR in 2024. Even though we are unlikely to be spared from more geopolitical volatility in the coming years, we are hopeful that we can put the turbulence of the pandemic and unprecedented inflation behind us. Above all, we are confident in our long-term strategy and highly dedicated teams that are fully committed to growth, top-quality products and innovation», explains Guido Vanherpe.

LLBG is ready to roll up its sleeves

Guido Vanherpe, Group CEO of La Lorraine Bakery Group: «La Lorraine Bakery Group aims to grow revenue in Europe, Turkey and the Middle East by more than 50 percent by 2028. We want to achieve this by strongly innovating while reducing the ecological impact.» To achieve that ambition, the employees of La Lorraine Bakery Group are crucial. LLBG plans to create, in 2024 alone, 400 new jobs, including 100 in Belgium. To attract the best talent, LLBG will launch a new Employer Branding campaign in 2024 under the slogan «Ready to roll up your sleeves?»

«We are a fast-growing family company with Belgian roots and strong values, operating in more than 35 countries. Within our company, all employees make a difference, whether they work in management, sales or on the production line: every position contributes to our growth story. Despite our rapidly growing organization, we remain very agile and entrepreneurial. We like to roll up our sleeves, whether it is developing new flavors,refining processes, or conquering new markets. Our long-term mission «Baking a better world together» guides us in everything we do,» Guido Vanherpe clarifies.

Addendum: LLBG Annual Report 2023 (Format PDF | 2197 KB)

20240516-LLBG-FY2023.