Home / Knowledge / News / Textiles / Lenzing H1 EBITA margin climbs 300bps
Lenzing H1 EBITA margin climbs 300bps
27
Aug '15
Earnings before interest, taxes, depreciation and amortisation (EBITDA) margin at value added cellulose fibre Lenzing Group climbed 300 bps year over year in the six months to June 30, 2015.

In a press release, Lenzing said its EBITDA margin in the first half of 2015 rose to 13.2 per cent as against 10.2 per cent in the six months to June 30, 2014, up 300 bps.

EBITDA expanded by a massive 37.7 per cent in the period under review to €126.5 million up from €91.9 million in the corresponding period of last year.

Earnings before interest and taxes (EBIT) in the reporting period amounted nearly doubled to €60.5 million or 86.7 per cent above the comparable EBIT of €32.4 million in the prior-year first half.

Consolidated revenue at the Austrian viscose fibre producer grew 6.2 per cent from €900.0 million to €955.4 million in the same period of earlier year.

“Currency effects, slightly higher sales volumes and an improved product mix were responsible for the revenue increase,” the company explained.

Adjusted equity of the Lenzing Group drove up to €1,132.7 million at the end of June 2015, up from €1,066.1 million at the end of 2014.

The adjusted equity ratio totaled to 46.8 per cent on June 30, 2015 vis-à-vis 44.9 per cent as on December 31, 2014, while it also reduced net financial debt by 10.7 per cent.

Interest-bearing financial liabilities less liquid assets declined to €401.5 million at the end of the first half of 2015 from the comparable level of €449.5 million at the end of 2014.

Investments in intangible assets, property, plant and equipment or Capex amounted to €26.0 million in the first half of 2015, also down from €64.2 million in the six months ended June 30, 2014.

“Investment activity was cut back following the completion of the large Tencel fibre production facility in Lenzing in the previous year,” it observed.

Investments focused on necessary maintenance work as well as quality and optimisation measures in fibre and pulp production.

Lenzing is currently focusing on investments designed to optimise costs and quality due to the ongoing uncertain market conditions and increasing quality demands.

Lenzing added that the Excellenz cost optimisation initiative continued to be implemented in the first half-year according to plan and proved to be very successful.

According to the company from the current perspective, the targeted effects of about €160 million per annum will be completely achieved, with their full impact starting in 2016.

“The restructuring program to adjust capacities of the technical units of Lenzing AG and the subsidiary Lenzing Technik which was launched in the first quarter of 2015 is on schedule,” Lenzing noted.

“The underlying reasons for the good performance were currency effects which turned out to be positive due to the weakness of the euro, good demand and improved cost position,” CEO Stefan Doboczky said. (AR)

Fibre2Fashion News Desk – India


Must ReadView All

Textiles | On 24th Jun 2017

Applied DNA to tag cotton for 2017/18 US ginning season

Applied DNA, provider of DNA-based supply chain security,...

Apparel/Garments | On 24th Jun 2017

NPD Group launches Trend Tracker for apparel trends

Global information company the NPD Group has launched Trend Tracker,...

Textiles | On 24th Jun 2017

Cotton USA’s first innovation competition in UK ends

Cotton USA has announced the successful close to its first innovation ...

Interviews View All

Amrit Sethia
SOIE

‘The intimatewear category in India is slowly becoming trend-sensitive.’

Nuno Venda
ROQ

‘There has been an increase in demand for water based inks, rather than...

Abhishek Samdaria
Reflete

GST will certainly reduce a lot of paperwork in future

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Eamonn Tighe
Nature Works LLC

Eamonn Tighe, Fibres and Nonwovens - Business Development Manager of...

Kevin Nelson
TissueGen

Kevin Nelson, Chief Scientific Officer, TissueGen discusses the growing...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Robert Brunner
Devereux

Golfwear and menswear brand Devereux is set for greener pastures. Robert...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

news category


Related Categories:
June 2017

June 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

SUBSCRIBE


Browse Our Archives

GO


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search