The Lenzing Group, a top supplier of regenerated cellulose fibers, saw a gradual business improvement in the first half of 2024. Revenue grew by 4.8 per cent to €1.31 billion, driven by a 9.3 per cent increase in fiber revenue.
Despite higher raw material and energy costs, EBITDA rose 20.4 per cent to €164.4 million, with an EBITDA margin up from 10.9 per cent to 12.5 per cent. The operating result (EBIT) improved to €18.9 million from a previous loss, while earnings per share narrowed to minus €1.84.
CEO Stephan Sielaff highlighted ongoing efforts to reduce costs and boost global sales, aiming for enhanced profitability and resilience. CFO Nico Reiner noted the positive impact of performance initiatives on EBITDA and free cash flow, anticipating over €100 million in benefits this financial year. Capital expenditure decreased, and cash reserves grew to €825.9 million.
Significant changes included suspending the €4.50 per share dividend policy and Suzano SA acquiring a 15 per cent stake from B&C Group. Leadership updates featured the appointment of Walter Bickel as Chief Transformation Officer and Rohit Aggarwal as the future CEO.
Looking ahead, Lenzing anticipates stable growth in environmentally responsible fibers despite global economic uncertainties. The company's performance program is ahead of schedule, promising continued earnings improvement and a stronger market position in sustainability.