The Austrian Lenzing Group, manufacturer of regenerated cellulose fibers such as Tencel, was able to increase its turnover by 5.7 percent to EUR 2.66 billion in the past 2024 financial year.
The company attributes the increase primarily to a higher fiber heel, which has increased by ten percent. At the same time, however, the price level was still below that of the previous year. In addition, the logistics costs have increased significantly, and the raw material and energy costs have still been increased. According to taxes, the result remains negative in 2024 – also influenced by one -off special effects – and is minus 138.3 million euros. In 2023 it still had minus 593 million euros. Cost savings of EUR 130 million and the implementation of a performance program that Lenzing should make more resistant to crises and more agile compared to market changes were positive.
“Thanks to targeted measures, contrary to the weak market situation, we were able to achieve a significant recovery of the amounts sold and a strong performance in the pulp business. These successes make it clear that our performance program works. Compared to 2023, we can therefore present improved business development in 2024, ”says Rohit Aggarwal, CEO of the Lenzing Group. “The markets remain challenging and uncertain, and the fiber prices have not yet recovered completely.”
As an outlook, Lenzing expects that the continuation of the performance program will also contribute to further improvement in results in the upcoming quarters, which should also lead to a higher EBITDA compared to the previous year. Structurally, Lenzing unchanged from an increasing need for environmentally compatible fibers for the textile and clothing industry as well as the hygiene and medicine industry.