The Austrian fiber manufacturer Lenzing AG is revising its dividend policy in view of the cautious prospects for the current financial year. On Wednesday, the company said in an ad hoc release that it expects earnings before interest, taxes, depreciation and amortization (EBITDA) to be between €320 million and €420 million for 2023 “assuming further market recovery”.
“On this basis, the Management Board of Lenzing AG does not see the need to implement the existing dividend policy of at least EUR 4.50 for the 2023 financial year,” the company admitted. As a result, the company is “suspending its dividend policy for the 2023 financial year”.
Last summer, the group promised its shareholders an “attractive dividend with a minimum amount of EUR 4.50 per share from the 2023 financial year”. The prerequisite, however, is that the distribution “is appropriate in the prevailing situation,” it said in a statement at the time. The company has since had to revise its profit targets downwards. In view of the current earnings forecast, the company has now said goodbye to its dividend plans.
Lenzing AG will publish its results for the 2022 financial year on Thursday.