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New strategy makes Lenzing's Q1 EBITDA rise 55%
12
May '16
CFO Thomas Obendrauf, CEO Stefan Doboczky, CCO Robert van de Kerkhof
CFO Thomas Obendrauf, CEO Stefan Doboczky, CCO Robert van de Kerkhof
Austrian cellulose fibres major, Lenzing reported a rise of 54.7 per cent in earnings before interest, tax, depreciation and amortisation (EBITDA) to €92.2 million in first quarter of 2016, ended March 31, as compared to €59.6 million in the corresponding period last year.

The substantial increase in earnings has been attributed to the company's new business strategy – Score Ten, which aims to strengthen core business areas of the company, expand its specialty fibres business and focus on other key aspects. A new organisational structure was also introduced to ensure optimal implementation of the strategy.

Commenting on the earnings, Stefan Doboczky, CEO of Lenzing said, “The new Group strategy Score Ten with its clear focus on profitable growth is taking hold. We are implementing the strategy very disciplined, which is having a noticeable effect on earnings already.”

“Initial progress has also been made in managing our trading working capital. Assuming that the overall business environment remains unchanged, I continue to expect a substantial improvement in earnings for the entire financial year 2016,” he added.

Earnings before interest and tax (EBIT) stood at €59.5 million in the first quarter of 2016 as compared to €27 million in the corresponding quarter of 2015, a rise of 120.3 per cent.

Revenue reported for this period was €512.8 million as compared to €474.6 million previously.

Lenzing expects a strong increase in demand for its specialty fibres in 2016. (MCJ)

Fibre2Fashion News Desk - India

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