La Lorraine – owner of sandwich chain Panos, among others – recorded a turnover of 885 million euros last year. That is 19 percent more than in 2020 and also 5 percent higher than the pre-corona year 2019. Operating profit (EBITDA) rose 29 percent to 112 million euros. A net amount of 25 million euros remained.
CEO Guido Vanherpe talks about a successful comeback after a difficult corona year 2020. There were also headwinds in 2021, with new lockdowns and unexpected price increases in the autumn. For this year, the family-owned company – which has 4,300 employees in more than 30 countries – expects a strong increase in sales due to significant volume growth and the impact of “significant” price increases.
La Lorraine expects that the price increases of raw materials, packaging material, energy and wages will continue in 2022. The bakery group wants to pass this on as much as possible through price increases. In particular, the war in Ukraine – a major producer of wheat, maize and sunflower oil – is causing uncertainty in the sector, it is said. “Supply uncertainty, as well as energy uncertainty, is driving price increases. This will undoubtedly lead to significant price increases of end products to customers and consumers,” the company said in a press release.
The group does not expect any shortages. “Apart from these unprecedented price increases, there are currently no indications that there will be significant shortages in basic commodities such as wheat and butter in Western, Central and Eastern Europe.”