Lenzing Group Revises EBITDA Downwards For 2023
Manufacturer of sustainable cellulose fibres Lenzing Group has revised downwards its EBITDA for the current financial year.
The Austrian company attributed the revision to continued weak development of markets relevant to Lenzing, coupled with very cautious market expectations in 2023.
“Taking into account the current lack of market recovery, the previous earnings forecast is not expected to be achieved,” the fibre producer said in a press release.
“The Lenzing Group is therefore adjusting its forecast for earnings development and is assuming EBITDA in a range of €270 million to 330 million for the 2023 financial year,” the company added.
“The recovery expected for the second half of the year in the markets relevant to us has not yet occurred. This makes the early measures we took all the more correct,” CEO Stephan Sielaff said.
“We launched an ambitious cost reduction program back in November 2022, which delivered the expected results ahead of schedule,” he added.
“Building on this, we are implementing a holistic and consistent value creation program with a focus on measures to strengthen profitability and cash flow generation,” Sielaff stated.
“With this value creation program, we will overcome the current economic challenges and make Lenzing more resilient in difficult market situations in the future,” CFO Nico Reiner too added.