Home / Knowledge / News / Textiles / Lenzing revenue down 6.4% in 2018 first half

Lenzing revenue down 6.4% in 2018 first half

08
Aug '18
Courtesy: Lenzing
Courtesy: Lenzing
The revenue of Lenzing in the first half of fiscal 2018 has declined by 6.4 per cent compared with the first half of the previous year to €1,075.4 million. This decrease is due to less favourable currency exchange rates. EBITDA decreased by 28.1 per cent to €194.8 million, especially due to price increases for key raw materials and higher energy prices.

The EBITDA margin fell from 23.6 per cent in the first half of 2017 to 18.1 per cent in the first half of 2018. EBIT declined by 37 per cent to €128.7 million, leading to a lower EBIT margin of 12 per cent (H1 2017: 17.8 per cent). The net profit for the reported period dropped by 39.3 per cent from €150.3 million in the previous year to a total of €91.3 million. Earnings per share equaled €3.44 (H1 2017: €5.55).

In line with the group’s specialty strategy, two milestones were set in the first half of 2018: Lenzing announced an investment of up to €30 million in another pilot line for the production of Tencel Luxe filaments at the Lenzing site. In addition, the company also introduced the environmentally friendly process for the production of Lenzing Ecovero branded viscose fibres at its Chinese site

With the Tencel brand as an umbrella brand for all specialty products in the textile segment and the Veocel brand as the umbrella brand for all specialty fibres in the nonwoven segment as well as the new master brand, which was presented in March, Lenzing showcased its strengths in a targeted manner.

"So far, the financial year 2018 proved to be as challenging as expected, and market headwinds were clearly noticeable. In this market environment, we are satisfied with the solid results we report. We are proud that with our corporate strategy sCore TEN and the focus on growth with specialty fibers we show big steps in the right direction," says Stefan Doboczky, chief executive officer of the Lenzing Group. “We will continue to implement our strategy with great discipline and are convinced that this will steadily improve the long-term profitability of Lenzing,” Doboczky adds.

The Lenzing Group is very well positioned in this market environment with its corporate strategy sCore TEN and will continue its consistent focus on growth with specialty fibers. Still, it sees challenging market conditions for the second half of 2018. In addition to the price pressure on standard viscose, the prices of some key raw materials such as caustic soda are still at a very high level and exchange rates continue to be volatile. The specialty fibres are expected to continue their very positive development. In this context, the Lenzing Group is satisfied with the earnings development to date, but underlines its estimate that the results for the year 2018 will be lower than the outstanding results in the last two years. (RR)

Fibre2Fashion News Desk – India


Must ReadView All

Pic: Shutterstock

Textiles | On 29th May 2020

Aatma Nirbhar Bharat Abhiyan needs to step up: Crisil

The steps announced by the government for the micro, small and medium ...

Pic: Shutterstock

Apparel/Garments | On 29th May 2020

Bangladesh’s Beximco exports 6.5 million PPE gowns to US

Bangladesh’s Beximco Group recently exported 6.5 million personal...

Pic: LC Waikiki

Apparel/Garments | On 29th May 2020

Turkish clothing brand LCW uses Iran as production hub

Turkish clothing brand LC Waikiki has placed an order with Iranian...

Interviews View All

Jurgen Gauger, Spreadshirt

Jurgen Gauger
Spreadshirt

‘Buying crowdsourced or creative designs are much more appealing to the...

Vasanth Kumar, Max Fashion India

Vasanth Kumar
Max Fashion India

‘Traditional high-street retailers are now willing to offer franchisees to ...

Mohammad Mamun Ar Rashid, UL VS Bangladesh Ltd

Mohammad Mamun Ar Rashid
UL VS Bangladesh Ltd

Productivity, creativity and innovation play a vital role in the growth of ...

Angelo Leung,

Angelo Leung

Guangdong Asiatex Textiles provides international and domestic apparel...

Carmen Silla,

Carmen Silla

Leading the transformation of the textiles industry with disruptive...

Christiane Thies,

Christiane Thies

Founded in 1892, Thies has concentrated on the fabrication of high-quality ...

Kevin Young & Tom Lucas, Web Industries

Kevin Young & Tom Lucas
Web Industries

Web Industries is a precision formatter of nonwoven materials used in baby ...

Paolo Ocleppo, Sandvik Hyperion

Paolo Ocleppo
Sandvik Hyperion

Paolo Ocleppo, Rotary Cutting Segment manager, Sandvik Hyperion discusses...

Pranesh Sridharan & Berndt Koll, Lenzing

Pranesh Sridharan & Berndt Koll
Lenzing

The Lenzing Group produces Lenzing Lyocell and Modal cellulosic fibres of...

Anisha Chaudhari, Threads & Shirts

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Bani Batra,

Bani Batra

Bani Batra’s couture wedding collection is inspired by traditional Indian...

Akta Adani, India Boulevard

Akta Adani
India Boulevard

India Boulevard is a San Francisco-based curated fashion marketplace that...

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

Leave your Comments


May 2020

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


Advanced Search