The Lenzing Group, a major global supplier of specialty fibers for the textile and nonwoven industries, reported a revenue of EUR 1.25 billion and EBITDA of EUR 136.5 million in the first half of 2023. Despite facing a challenging market environment in the second half of 2022, signs of recovery were evident in the first and second quarters of 2023, with improvements in raw material and energy costs and increasing demand for textile fibers.

While the revenue in the reporting period decreased by 3.4 percent year-on-year due to lower fiber revenues, business with nonwoven fibers and dissolving wood pulp remained stable. Positive one-off effects from the valuation of biological assets and inventories influenced the earnings trend. As a result, the EBITDA in the first half of 2023 decreased by 27.7 percent year-on-year to EUR 136.5 million, and the net result amounted to minus EUR 65.8 million.

The second quarter showed a recovery compared to the first quarter, with revenue increasing by 0.6 percent to EUR 627.1 million. EBITDA amounted to EUR 106.8 million, and the net result for the period was minus EUR 0.8 million.

Lenzing implemented a reorganization and cost-cutting program in the third quarter of 2022, targeting over EUR 70 million in annual cost savings. Additionally, measures were taken to strengthen sales activities and improve revenue. The company successfully implemented a capital increase during the reporting period, with gross issue proceeds of approximately EUR 400 million, strengthening the balance sheet and liquidity position.

The implementation of Lenzing's "Better Growth" corporate strategy, focusing on sustainable and high-quality premium fibers, continued in the first half of 2023. Investments in production sites in China and Indonesia to convert existing capacities for environmentally responsible specialty fibers showed progress, with successful production of TENCEL brand modal fibers in China.

While global economic activity remains influenced by geopolitical tensions and inflationary pressures, Lenzing remains cautiously optimistic, especially in the textile segment. The market environment continues to impact consumer sentiment, but signs of brighter outlooks have emerged recently.

Lenzing's performance in the first half of 2023 reflects a mix of challenges and opportunities, with ongoing efforts to optimize operations and strengthen its position in the specialty fiber market.