EQS-News: Lenzing AG / Key word(s): Annual Results
Lenzing Group continued its recovery course in the 2024 financial year
14.03.2025 / 07:30 CET/CEST
The issuer is solely responsible for the content of this announcement.
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Lenzing Group continued its recovery course in the 2024 financial year
• Revenue up 5.7 percent year-on-year to EUR 2.66 bn in 2024
• Performance program shows positive effect: EBITDA increased by 30.4
percent to EUR 395.4 mn, free cash flow of EUR 167 mn (after minus EUR
122.8 mn in 2023)
• Net result after taxes at minus EUR 138.3 mn (after minus EUR 593.0 mn
in 2023) negatively impacted by one-off effects
Lenzing – The Lenzing Group, a leading provider of regenerated cellulose
fibers for the textile and nonwoven industries, continued to improve its
business performance in 2024 despite the expected slow market recovery.
While Lenzing was able to significantly increase its sales volumes, the
price level remained below that of the previous year. Logistics costs have
risen significantly, and raw material and energy costs also remained high.
Revenue grew by 5.7 percent year-on-year to EUR 2.66 bn in 2024, mainly
reflecting a higher level of revenue generated from fibers (+10 percent).
The positive effects of the holistic performance program were the main
factor driving the operating earnings trend. Earnings before interest,
tax, depreciation and amortization (EBITDA) rose by 30.4 percent
year-on-year to EUR 395.4 mn in 2024. The EBITDA margin increased from
12.0 percent to 14.8 percent. The operating result (EBIT) amounted to EUR
88.5 mn (compared with minus EUR 476.4 mn in 2023) and the EBIT margin
stood at 3.3 percent (compared with minus 18.9 percent in 2023). The
result before tax (EBT) amounted to minus EUR 42.0 mn (compared with minus
EUR 585.6 mn in 2023).
“Thanks to the decisive measures taken, we were able to achieve a
significant recovery in fiber volumes sold and a strong performance in the
pulp business despite the weak market situation. These successes clearly
show that our performance program is working. For this reason, our
business performed better in 2024 than in 2023,” says Rohit Aggarwal, CEO
of the Lenzing Group. “The markets remain challenging and uncertain, and
fiber prices have not yet fully recovered. We will therefore continue to
execute our program in a very focused manner. The Lenzing Group is and
remains the leading integrated fiber company and, thus, the innovative
force in the industry.”
The Lenzing Group Managing Board is currently executing the implemented
comprehensive performance program with the overriding objective of
achieving significantly enhanced long-term resilience to crises and
greater agility in the face of market changes. The program initiatives are
aimed primarily at an improvement in EBITDA and free cash flow generation
through higher profitability and sustainable cost excellence. Extensive
actions are being undertaken to strengthen sales activities, such as the
acquisition of new customers for the most important fiber types and
expansion in new markets, which are already having a positive impact in
terms of revenue. In addition, the Managing Board anticipates significant
cost savings, of which over EUR 130 mn were already realized in 2024.
In addition to the positive effects on revenue and earnings development,
the performance program also significantly improved cash flow from
operating activities to EUR 322.5 mn (after EUR 160.3 mn in 2023). Free
cash flow also showed a clearly positive trend with an increase to EUR 167
mn (compared with minus EUR 122.8 mn in 2023).
Liquid assets decreased by 38.2 percent compared to December 31, 2023, to
a level of EUR 451.7 mn as of December 31, 2024, mainly due to the
repayment of private placements and other loans and borrowings. Capital
expenditures for intangible assets, property, plant and equipment, and
biological assets (CAPEX) amounted to EUR 156.3 mn in 2024 (compared with
EUR 283.6 mn in 2023) due to a clear focus on maintenance and
license-to-operate projects as part of the performance program, following
significant investments in previous years.
The income tax expense amounted to EUR 96.3 mn in 2024 (compared with EUR
7.3 mn in 2023). Among other factors, this reflected the retroactive
withdrawal from the Austrian tax group because of the interest of B&C
Holding Österreich GmbH (group parent) falling below 50 percent for the
2022 assessment year. As a consequence, the Lenzing Group was required to
pay a tax allocation of EUR 22.2 mn to the group parent in accordance with
the group tax allocation agreement. This tax allocation was expensed in
the reporting year. In addition, the income tax expense was influenced by
the value adjustment of tax assets of individual Group companies and by
currency effects due to the translation of tax items from the local
currency into the functional currency(1)^(1) in a volume of EUR 47.5 mn.
As a result, the Lenzing Group recorded a net result after taxes of minus
EUR 138.3 mn (after minus EUR 593.0 mn in 2023). Earnings per share were
minus EUR 4.06 (after minus EUR 20.02 in 2023).
Outlook
The IMF recently slightly upgraded its growth forecast for 2025 to 3.3
percent, but emphasizes the continued high extent of variation between
regions as well as the high level of uncertainty. The latter is mainly due
to geopolitical tensions, increasing protectionist tendencies, and a
potential return of inflation.
In times of uncertainty, consumers are remaining cautious and thrifty,
which is exerting a negative impact on consumer sentiment and on their
propensity to spend.
The currency environment is expected to remain volatile in the regions
relevant to Lenzing.
In the trend-setting market for cotton, analysts anticipate a slight
increase of stock levels to around 18.7 mn tonnes in the current 2024/2025
harvest season, following a reduction of 0.9 mn tonnes in the previous
season, according to preliminary estimates.
Earnings visibility remains limited overall.
Lenzing is still ahead of schedule with the implementation of the
performance program. The company expects that the measures will also
contribute to further earnings improvement in the coming quarters.
Taking the aforementioned factors into consideration, the Lenzing Group
expects EBITDA to be higher in 2025 than in the previous year.
In structural terms, Lenzing continues to expect growth in demand for
environmentally responsible fibers for the textile and apparel industry,
as well as for the hygiene and medical sectors. As a consequence, Lenzing
is very well positioned with its strategy and is driving ahead with not
only profitable growth in specialty fibers but also the further expansion
of its market leadership in the sustainability area.
Selected indicators of the Lenzing Group
EUR mn 2024 2023
Revenue 2,663.9 2,521.2
EBITDA (earnings before interest, tax, depreciation and 395.4 303.3
amortization)
EBITDA margin 14.8 % 12.0 %
Net profit/loss after tax (138.3) (593.0)
Earnings per share in EUR (4.06) (20.02)
Cash flow from operating activities 322.5 160.3
Free cash flow 167.0 (122.8)
CAPEX 156.3 283.6
31/12/2024 31/12/2023
Net financial debt 1,532.5 1,562.6
Adjusted equity ratio 34.7 % 34.7 %
Employees (full-time equivalents) 7,816 7,917
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Your contact for
Public Relations: Investor Relations:
Dominic Köfner Sébastien Knus
Vice President Corporate Communications & Vice President Capital Markets
Public Affairs Lenzing Aktiengesellschaft
Lenzing Aktiengesellschaft Werkstraße 2, 4860 Lenzing,
Werkstraße 2, 4860 Lenzing, Austria Austria
Phone +43 7672 701 2743 Phone +43 7672 701 3599
E-mail (3)media@lenzing.com E-mail (5)s.knus@lenzing.com
Web (4)www.lenzing.com Web (6)www.lenzing.com
About the Lenzing Group
The Lenzing Group stands for the responsible production of specialty and
premium fibers based on regenerated cellulose. As an innovation leader,
Lenzing is a partner of global textile and nonwoven manufacturers and
drives many new technological developments. The Lenzing Group’s
high-quality fibers are the raw material for a wide range of textile
applications – ranging from functional, comfortable, and fashionable
clothing through to durable and sustainable home textiles. TÜV-certified
biodegradable and compostable Lenzing fibers are also ideal for demanding
use in everyday hygiene applications.
The Lenzing Group’s business model extends far beyond that of a
traditional fiber producer. Together with its customers and partners,
Lenzing develops innovative products along the value chain, adding value
for consumers. The Lenzing Group strives for efficient utilization and
processing of all raw materials and offers solutions for the transition of
the textile industry from the current linear economic system to a circular
economy. In order to align its commitment to limiting man-made climate
change with the goals of the Paris Agreement, Lenzing has a clear,
science-based climate action plan that provides for a significant
reduction in greenhouse gas emissions (Scopes 1, 2, and 3) by 2030 and a
net-zero target by 2050.
Key Facts & Figures Lenzing Group 2024
Revenue: EUR 2.66 bn
Nominal capacity (fibers): 1,110,000 tonnes
Employees (full-time equivalents): 7,816
TENCEL™, LENZING™ ECOVERO™, VEOCEL™, LENZING™, and REFIBRA™ are trademarks
of Lenzing AG.
Disclaimer: The above financial indicators are derived primarily from the
Lenzing Group’s IFRS consolidated financial statements. Additional details
are provided in the section “Notes on the financial performance indicators
of the Lenzing Group”, in the glossary to the Annual and Sustainability
Report and in the Lenzing Group’s consolidated financial statements.
(7)^(1) Predominant currency of the primary economic environment of a
subsidiary
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14.03.2025 CET/CEST This Corporate News was distributed by EQS Group.
www.eqs.com
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Language: English
Company: Lenzing AG
4860 Lenzing
Austria
Phone: +43 7672-701-0
Fax: +43 7672-96301
E-mail: office@lenzing.com
Internet: www.lenzing.com
ISIN: AT0000644505
Indices: ATX
Listed: Vienna Stock Exchange (Official Market)
EQS News ID: 2100644
End of News EQS News Service
2100644 14.03.2025 CET/CEST
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