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Fibres/​Yarns/​Fabrics

Revenue growth and solid earnings at Lenzing

First half revenues up by more than 25%, earnings impacted by sharp rise in energy, raw material and logistics costs.

3rd August 2022

Innovation in Textiles
 |  Lenzing, Austria

Clothing/​Footwear

The Lenzing Group’s revenues grew by 25.2% year-on-year to reach EUR 1.29 billion in the first half of 2022, primarily due to higher fibre prices. The earnings trend mainly reflects the cost trend in global energy and raw material markets, which affected the whole of manufacturing industry.

Energy, raw materials and logistics costs rose sharply once again in the reporting period, after cost pressure had already risen steadily throughout the 2021 financial year. As a consequence, earnings before interest, tax, depreciation and amortization (EBITDA) decreased by 13.3% year-on-year to EUR 188.9 million.

The strength of the specialty strategy and of brands based on innovation and sustainable activity as well as the continued focus on measures to improve structural earnings in all regions mitigated this negative effect. The EBITDA margin reduced from 21.1 to 14.6 % in the first half of the year. Net profit for the period decreased by 24.8% to EUR 72.3 million, while earnings per share amounted to EUR 2.36 (compared to EUR 3.06 in the first half of 2021).

“In the first half of 2022, we have accomplished an enormous amount together in order to achieve our ambitious growth and sustainability goals. Thanks to considerable efforts, we can be satisfied with our business performance given the extreme developments in global energy and raw material markets,” comments Stephan Sielaff, Lenzing Group CEO.

“The second half of the year will continue to be characterized by elevated levels of uncertainty and extreme challenges on the energy and raw materials sides. Lenzing is a company with an international footprint and for this reason is partly able to offset certain local challenges globally, albeit at significantly higher costs. Lenzing has analysed conceivable scenarios and developed appropriate responses. For months, we have been preparing as best we can for a situation of acute energy shortages, rising prices and supply constraints, and we will continue to do everything within our power to ensure sustainable business performance, and to continue to be a reliable partner,” notes Sielaff.

www.lenzing.com

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