The Austrian fiber producer Lenzing AG closed the 2022 financial year with a significant increase in sales despite adverse conditions. The bottom line, however, was red numbers. This emerges from a current annual report that the company published on Thursday.
Accordingly, sales last year amounted to 2.57 billion euros, which meant an increase of 16.9 percent compared to 2021. However, the group said the growth was “primarily due to higher fiber prices”. In the second half of the year, the market environment deteriorated significantly, and “the deteriorating consumer climate” had a negative impact on business development.
Earnings suffered from the sharp increase in energy and raw material prices. Earnings before interest, taxes, depreciation and amortization (EBITDA) shrank by 33.3 percent to EUR 241.9 million. As a result, the group posted a net loss of 37.2 million euros after posting a surplus of 127.7 million euros the previous year.
In view of the latest development, Lenzing launched a cost-cutting program in the fall that is expected to lead to annual savings of at least EUR 70 million in the future. The company announced on Wednesday that it expects EBITDA in the range of EUR 320 to 420 million for 2023 and will suspend its dividend policy in the current year.