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Q1 EBITDA expands 28.7% at Lenzing Group
May '15
Earnings before interest, taxes, depreciation and amortization (EBITDA) in the first quarter of 2015 at Austrian cellulose fibre producer Lenzing Group expanded 28.7 per cent year over year.

In a press release, Lenzing said it’s EBITDA for the first quarter of 2015 improved 28.7 per cent to €59.6 million from €46.3 million it posted in the first quarter of 2014.

This corresponds to an EBITDA margin of 12.6 per cent in the quarter under review as against 10.2 per cent in the first quarter from the prior year.

In the reporting quarter, consolidated revenue totaled €474.6 million, up 5.1 per cent from €451.7 million in the same period of the previous year.

According to Lenzing, the first quarter of 2015 for Lenzing Group was characterised by satisfactory volume demand against the backdrop of still unsatisfactory selling prices.

“In spite of the ongoing difficult market environment, the upgraded product mix, slightly higher fibre sales volumes and improved cost situation, enabled Lenzing to achieve clear improvement in earnings,” it added.

Earnings before interest and taxes (EBIT) amounted to €27.0 million in the first three months of 2015, a sharp rise of 61.3 per cent from the prior-year level of €16.7 million.

Net profit for the reporting period more than doubled to €16.6 million, climbing by 115.3 per cent from €7.7 million in the first quarter of 2014.

Adjusted equity of Lenzing Group rose to €1,113.6 million at the end of March 2015, up from €1,066.1 million at the end of December 2014.

The adjusted equity ratio amounted to 45.4 per cent at March 31, 2015 as against 44.9 per cent as on December 31, 2014.

Net financial debt more or less remained unchanged at €450.1 million from €449.5 million at December 31, 2014, while net gearing fell to 40.4 per cent at March 2015-end from 42.2 per cent at end of 2014.

“The marketing drive for specialty fibres launched in 2014, especially for Tencel has paid off,” Lenzing’s chief executive officer Peter Untersperger said.

According to him, Lenzing successfully implemented initial price increases and significantly increased the share of specialty fibres in the product mix.

Moreover, it also laid the groundwork for generating further earnings improvements against the backdrop of an ongoing difficult market environment thanks to comprehensive structural and cost optimisation.

“The excelLENZ cost savings initiative is proceeding according to plan and will generate cost savings of up to €160 million per annum as of 2016 compared to the year 2013,” the CEO informed.

Lenzing continued the good operational development achieved in the fourth quarter of 2014 with respect to its core business of manufacturing man-made cellulose fibres in the first quarter of 2015 as well.

“All production plants were once again operating at full capacity and demand for Lenzing Modal as well as Tencel was very gratifying,” it added. (AR)

Fibre2fashion News Desk - India

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