Lenzing reports €586.2 million revenue in Q1 2017

EBITDA was up 46.6 per cent to €135.1 million, corresponding to an EBITDA margin of 23 per cent in comparison to 18 per cent in the prior year period. EBIT of the Lenzing Group increased by 72.1 per cent to €102.3 million as against 11.6 per cent in Q1 2016. The profit for the Q1 2017 improved by 69.6 percent to €75 million, and earnings per share rose 67.9 per cent to €2.75 per share.

Further, the company has also opened up new sales and marketing offices in Turkey and Korea. As of mid-2018, customers will have an additional 25,000 tons of lyocell specialty fibres at the disposal. The construction of the new production facility for Tencel fibres in Mobile, Alabama has started already and will be finished at the end of the first quarter of 2019. Lenzing is currently examining several potential sites in Asia for a further lyocell plant.

"The first quarter of 2017 was the best in our company history. A key factor is the disciplined implementation of our sCore TEN corporate strategy. The opening of new sales offices in Turkey and Korea enable us to serve our customers more effectively. We are progressing well with the expansion of our production capacities for specialty fibres. This will support our customers in their own expansion efforts by providing products made of our botanic fibres," said Stefan Doboczky, chief executive officer of the Lenzing Group. "Assuming that fibre market conditions remain at current levels, we expect a substantial earnings improvement this year compared to 2016." (RR)

Fibre2Fashion News Desk – India