Lenzing Group Reports Steady Growth In Q3 2024 Despite Challenges
The Lenzing Group, a global leader in regenerated cellulosic fibers, reported 5% year-on-year revenue growth to EUR 2 billion in the first nine months of 2024, driven by a 10.9% increase in fiber revenue. EBITDA rose by 20.3% to EUR 263.7 million, boosting the EBITDA margin to 13.5% from 11.7%.
Operating earnings (EBIT) rebounded to EUR 38.3 million from a EUR 10.5 million loss last year. While earnings before tax (EBT) improved to minus EUR 33.4 million, the group recorded a net loss of EUR 111.1 million, largely due to a tax impact from exiting the Austrian tax group.
CEO Rohit Aggarwal said, “The Lenzing Group is continuing its recovery course. We are committed to strict cost management, strengthening global sales, and adapting to market changes to reinforce our position as a leading integrated fiber group.”
Lenzing’s performance program is ahead of schedule, with expected annual cost savings exceeding EUR 100 million. Free cash flow improved significantly to EUR 191.8 million from a negative EUR 138.2 million in 2023.
In September, LD Celulose, Lenzing’s Brazilian joint venture, issued a USD 650 million green bond and secured a USD 350 million syndicated loan to refinance its pulp plant. Meanwhile, Suzano S.A. acquired a 15% stake in Lenzing AG, deepening their collaboration.
