Lenzing loss widens, revenues drop by 5.3 percent

Lenzing revenue in the first three quarters of 2023 decreased by 5.3 percent to 1.87 billion euros, EBITDA decreased by 16.7 percent to 219.1 million euros, net result amounted to minus 96.7 million euros and earnings per share amounted to minus 4.90 euros.

The company said in a release that the reduction was primarily due to lower fibre revenues, while pulp revenues were up, while the earnings trend was mainly influenced by the market environment.

The Lenzing Group continues to expect that EBITDA for the 2023 financial year will be in a range between 270 million euros and 330 million euros.

“The recovery that has been expected for the second half of the year in the markets relevant for us, so far failed to materialise. As a consequence, the measures we took at an early stage have proved all the more correct. We already launched an ambitious cost-cutting program at the end of 2022, which has delivered the expected results ahead of schedule,” said Stephan Sielaff, Lenzing Group CEO.

Lenzing implemented a reorganisation and cost reduction program with a volume in excess of 70 million euros, while also implementing further measures to strengthen free cash flow. In the third quarter of 2023, Lenzing generated positive free cash flow of 27.3 million euros and the balance sheet and liquidity position were significantly strengthened through capital increase of around 400 million euros and the extension of the debt terms in the reporting period.

The company added that global personnel costs will be reduced by up to 30 million euros or around 500 full-time equivalents (FTE), by not filling positions that fall vacant due to retirements and natural attrition, as well as by staff reductions.