Lenzing warns of write-downs of up to 480 million euros in financial year 2023

The Austrian fibre manufacturer Lenzing AG will have to make write-downs in the three-digit million euro range for the 2023 financial year.

On Tuesday evening, the company announced that the "annual evaluation of the valuation of assets" had revealed a need for impairment, necessitating special write-downs of up to 480 million euros. The reasons for this are "continued uncertainties in the economic environment" and "continued increased raw material and energy costs as well as higher discount rates due to the changed interest rate environment", the group explained.

The non-cash impairments would have a negative impact on earnings before interest and taxes (EBIT) in the current financial year, but not on earnings before interest, taxes, depreciation and amortisation (EBITDA), the fibre producer emphasised.

The company therefore continues to expect EBITDA for 2023 to be within the previous forecast range of 270 to 330 million euros. Specifically, a result in the region of around 300 million euros is now expected. The group plans to present its full business figures for the past year on 15 March.