Lenzing posts slump in full year profits

The Lenzing Group revenue declined by 3.7 percent in 2018 compared with the previous year to 2.18 billion euros (2.47 billion dollars). The company said, predicted challenging market environment for standard viscose, plus less favourable exchange rates and a slight decline in sales volume were the key contributing factors to this decline. Net profit for the year after one-off effects dropped by 47.4 percent from 281.7 million euros in the previous year to 148.2 million euros (167.8 million dollars), while earnings per share equalled 5.61 euros (6.36 dollars) against 10.47 euros in 2017.

“Although 2018 proved to be more challenging than the preceding years, it was, nevertheless, the fourth best year in the company’s history. We consistently worked on the strategic imperatives of our Score Ten corporate strategy in order to raise our pulp integration, enhance customer intimacy, increase the share of specialty fibres in revenue and to invest in new technologies and business areas”, says Stefan Doboczky, Chief Executive Officer of the Lenzing Group in a statement.

EBITDA, the company adde, was down by 24 percent to 382 million euros (432.6 million dollars) due to price increases for key raw materials and higher energy and personnel costs, while the EBITDA margin dropped from 22.2 percent to 17.6 percent in the reporting year. EBIT fell by 36 percent to 237.6 million euros (269 million dollars), leading to a lower EBIT margin of 10.9 percent.

The company’s management supervisory board, Lenzing said, will propose a stable dividend of 3 euros per share plus a special dividend of 2 euros per share at the upcoming annual general meeting. In total, the paid dividend will amount to 5 euros per share, corresponding to a dividend payment to shareholders of roughly 133 million euros.

Picture:Lucie Maceczková for Lenzing, Lenzing Newsroom