Cellulose Fibre Maker Lenzing Group H1 Sales Slip 3.4%
In the first six months of 2023, sales at cellulose fibre producer Lenzing Group slipped 3.4 percent year on year to €1.25 billion, mainly due to lower fibre revenues, although pulp revenues were up.
EBITDA in the first half of 2023 declined significantly by 27.7 percent from a year ago period to €136.5 million.
Lenzing attributed the decline in EBITDA to influence of positive one-off effects from the valuation of biological assets and inventories.
As a result, net loss totaled to €65.8 million in the six months ending June 30, 2023 compared with €72.3 million in the first half of 2022.
Lenzing reported a loss per share of €3.92 vis-à-vis €2.36 earnings per share in the corresponding period of the previous year.
“We proactively implemented optimisation measures on the cost and liquidity side as well as on the sales side at an early stage, which is having an increasingly positive impact,” CEO Stephan Sielaff said.
“In the medium and long term, we continue to expect strong growth in demand for sustainable products from Lenzing,” he added.
Lenzing launched a reorganisation and cost-cutting program in the third quarter of 2022 and is fully on track with its implementation.
More than €70 million in annual cost savings are targeted once the program has been fully implemented.
In addition, measures were initiated to bolster free cash flow, further steps were taken to reduce working capital, and currency and energy price hedging were restructured.
