Anticipated Recovery In Market Fails To Materialise – Lenzing
Manufacturer of cellulose fibres, Lenzing said the anticipated recovery in markets relevant for company has failed to materialise till date.
“The continued sharp increase in raw material and energy costs and very subdued demand had a negative impact on us as well as the whole industry,” the Austrian company said in a press release.
Revenue in the first nine months of 2023 at Lenzing decreased 5.3 percent year-on-year to €1.87 billion, driven by reduction in fibre revenues, although pulp revenues were up.
EBITDA in the reporting period too declined higher at 16.7 percent from a year ago period to €219.1 million.
The company reported a net loss in the January to September 2023 period at €96.7 million compared with a net profit of €74.9 million in the comparable period of previous year.
Loss per share in the period under review stood at €4.90, as against €2.16 in the first three quarters of 2022.
“The recovery that has been expected for the second half of the year in the markets has so far failed to materialise. The measures we took at an early stage have proved all the more correct,” CEO Stephan Sielaff said.
“We have launched an ambitious cost-cutting program at the end of 2022, which has delivered the expected results ahead of schedule,” he added.
“Building on this, we are currently implementing a holistic performance program with a focus on measures to boost profitability and cash flow generation as well as to leverage growth potential,” the CEO stated.
