Lenzing Group recovers in 2024, result remains negative
Lenzing headquarters. Credits: Lenzing Group. Austrian firm Lenzing Group, a manufacturer of regenerated cellulose fibers such as Tencel, increased its sales in the 2024 financial year by 5.7 percent compared to the previous year to 2.66 billion euros. The company attributes this increase primarily to higher fibre sales, which rose by 10 percent. At the same time, however, price levels remained below the previous year's level. In addition, logistics costs increased significantly, and raw material and energy costs also remained elevated. As a result, earnings after taxes will remain negative in 2024 at minus 138.3 million euros. In 2023, they had been minus 593 million euros. Positive effects came from cost savings of 130 million euros and the implementation of a performance programme designed to make Lenzing more resilient to crises and more agile in the face of market changes. "Thanks to targeted measures, we were able to achieve a significant recovery in fibre volumes sold and a strong performance in the pulp business despite the weak market situation. These successes clearly demonstrate the effectiveness of our performance program. Compared to 2023, we can therefore present an improved business performance in 2024," says Rohit Aggarwal, CEO of the Lenzing Group. "Markets remain challenging and uncertain, and fibre prices have not yet fully recovered." Looking ahead, Lenzing expects the continuation of the performance programme to contribute to further earnings improvements in the coming quarters, which should also lead to higher EBITDA compared to the previous year. Structurally, Lenzing continues to anticipate increasing demand for environmentally friendly fibres in the textile and apparel industry, as well as the hygiene and medical sectors. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@fashionunited.com
Austrian firm Lenzing Group, a manufacturer of regenerated cellulose fibers such as Tencel, increased its sales in the 2024 financial year by 5.7 percent compared to the previous year to 2.66 billion euros.
The company attributes this increase primarily to higher fibre sales, which rose by 10 percent. At the same time, however, price levels remained below the previous year's level. In addition, logistics costs increased significantly, and raw material and energy costs also remained elevated.
As a result, earnings after taxes will remain negative in 2024 at minus 138.3 million euros. In 2023, they had been minus 593 million euros. Positive effects came from cost savings of 130 million euros and the implementation of a performance programme designed to make Lenzing more resilient to crises and more agile in the face of market changes.
"Thanks to targeted measures, we were able to achieve a significant recovery in fibre volumes sold and a strong performance in the pulp business despite the weak market situation. These successes clearly demonstrate the effectiveness of our performance program. Compared to 2023, we can therefore present an improved business performance in 2024," says Rohit Aggarwal, CEO of the Lenzing Group. "Markets remain challenging and uncertain, and fibre prices have not yet fully recovered."
Looking ahead, Lenzing expects the continuation of the performance programme to contribute to further earnings improvements in the coming quarters, which should also lead to higher EBITDA compared to the previous year. Structurally, Lenzing continues to anticipate increasing demand for environmentally friendly fibres in the textile and apparel industry, as well as the hygiene and medical sectors.
FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@fashionunited.com
This article was translated to English using an AI tool.
