Lenzing loss widens to 20.02 euros per share

Subdued demand and the continued rise in raw material and energy costs negatively impacted Lenzing Group’s earnings in the 2023 financial year.

While the company’s revenue remained comparatively stable at 2.52 billion euros, earnings after tax were negative 593 million euros and earnings per share were negative 20.02 euros.

The company said in a statement that the prices for wood-based specialty fibres were slightly down due to weaker demand, particularly from brands and retailers, as well as additional market capacity. Revenues generated with dissolving wood pulp as well as biorefinery and co-products grew during the reporting year.

Lenzing’s EBITDA rose by 25.4 percent year-on-year to reach 303.3 million euros, while EBIT was minus 476.4 million euros.

“The anticipated recovery of markets relevant to the Lenzing Group has failed to materialise to date. Subdued demand and the still sharply increased raw material and energy costs have led to a result in 2023 that we are not satisfied with,” notes Stephan Sielaff, chief executive officer of the Lenzing Group.

Lenzing continues to anticipate growth in demand for environmentally responsible fibres for the textile and clothing industry as well as for the hygiene and medical sectors. The group expects EBITDA for the 2024 financial year to be higher than in the previous year.