05 May 2022, Mumbai:
Lenzing rides out significant cost pressure to report a solid first quarter.
In the first quarter of 2022, the Lenzing Group, like the entire manufacturing industry, was significantly affected by the extreme developments in global energy and commodity markets.
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A predominantly positive market environment and the strategic focus on specialty fibers such as those of the TENCELTM, LENZINGTM ECOVEROTM, and VEOCELTM brands nevertheless ensured a solid revenue and earnings trend, with the effect of higher costs being largely offset.
Revenue grew by 25.7 percent year-on-year to reach EUR 615 mn in the first quarter of 2022, primarily due to continued high demand for wood-based biodegradable specialty fibers and higher fiber prices.
Specialty fibers’ share of fiber revenue currently stands at 73.3 percent. The earnings trend reflects trends in energy, raw materials, and logistics costs, although the company’s continued focus on measures to improve structural earnings in all regions mitigated this negative effect.
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Earnings before interest, tax, depreciation, and amortization (EBITDA) decreased by 7 percent year-on-year to EUR 88 mn.
The EBITDA margin reduced from 19.3 to 14.3 percent.
Net profit for the quarter grew by 14.3 percent to EUR 34.1 mn, while earnings per share amounted to EUR 0.87 (compared to EUR 1.06 in the first quarter of 2021).
“Lenzing made a solid start to the 2022 financial year thanks to considerable efforts in an environment of sharply rising costs.
Demand for our wood-based, biodegradable specialty fibers also recorded a positive trend in the first quarter,” notes Stephan Sielaff, Lenzing Group CEO.
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