Image: Huemer
The listed Upper Austrian fiber manufacturer Lenzing increased sales by 16.9 percent to EUR 2.57 billion in the 2022 financial year, but at the same time EBITDA collapsed by a third to EUR 241.9 million. The bottom line result is deep red at minus 37.2 million euros. In 2021, the group still earned 127.7 million euros. A savings program of 70 million euros is being implemented. In Heiligenkreuz im Lafnitztal in Burgenland there is short-time work.
“In addition to the drop in demand, the development of earnings reflects in particular the increased energy and raw material costs,” said the group on Thursday morning. Further measures to strengthen free cash flow would be taken. This is for the 2022 financial year at minus 740.7 million euros, mainly due to the investments in Brazil and Thailand. A positive contribution to free cash flow can be expected from the already announced temporary waiver of dividend payments. Reference is made to a solid liquidity reserve of 686 million euros.
“Lenzing faced a very strong headwind due to the multiple crises of the past year,” Stephan Sielaff, CEO of the Lenzing Group, was quoted as saying in the press release. “Nevertheless, we can look to the future with great confidence, because the medium and long-term need for sustainable innovations remains unabated and the demand for environmentally friendly fibers will continue to rise. We will structurally adjust our cost base and emerge from this crisis stronger.”
With regard to the outlook, it was said that the war in Ukraine and the more restrictive monetary policy of many central banks to combat inflation would continue to have a negative impact on global economic activity. The easing of China’s zero-Covid policy could be a catalyst for a faster-than-expected recovery.
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