Lenzing Group 1H 2019 results: EBITDA down 7% from year ago to Euro 181.2 million

LENZING, Austria, August 7, 2019-

The Lenzing Group continued its solid business development in the first half of 2019. Despite a significantly more challenging market environment with historically low prices for standard viscose, Lenzing recorded a slight increase in revenue. The disciplined implementation of the sCore TEN strategy and the focus on specialty fibers continue to have a positive impact. Thanks to ongoing high demand for sustainably produced specialty fibers and positive currency effects, the impact of low standard viscose prices was largely offset in earnings.

Revenue of the Lenzing Group increased by 1.2 percent in the first half of 2019 and amounted to EUR 1.09 bn. In addition to more favorable currency relations, this was primarily attributable to a further product mix optimization and higher prices for specialty fibers. The share of specialty fibers in revenue, at 48.4 percent, significantly exceeded the prior-year value of 44.1 percent. EBITDA (earnings before interest, tax, depreciation and amortization) dropped by 7 percent to EUR 181.2 mn. This decline primarily resulted from higher production volumes and currency effects which led to an increase in pulp costs, from an increase in personnel expenses and the market environment for standard viscose. The EBITDA margin declined from 18.1 percent in the first half of 2018 to 16.6 percent in the reporting period. EBIT (earnings before interest and tax) fell by 17.9 percent to EUR 105.6 mn, resulting in a lower EBIT margin of 9.7 percent (H1 2018: 12 percent). Net profit for the period decreased by 15.9 percent from EUR 91.3 mn to EUR 76.8 mn. Earnings per share amounted to EUR 2.97 (H1 2018: EUR 3.44).

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