Austrian textile firm Lenzing Group H1 earning doubles to €218 mn

04 Aug '21

2 min read

Pic: Lenzing Group

Lenzing Group, an Austrian leader in sustainable specialty fibres, reported 27.5 per cent revenue growth to €1.03 billion in first half (H1) of FY21 ended on June 1, 2021, compared to €810.2 million in the same period of previous fiscal. EBITDA (earnings before interest, tax, depreciation and amortisation) in H1 doubled to €217.8 million (€95.6 million).

“This increase in revenue is primarily attributable to higher viscose prices, which stood at more than RMB 15,000 in May thanks to significantly higher demand for fibres, especially in Asia. The focus on wood-based specialty fibres such as Tencel, Lenzing Ecovero and Veocel branded fibres also had a positive impact on the revenue development; the share of specialty fibres in fibre revenue rose to 72.8 per cent in the reporting period,” the group stated in a press release.

“Lenzing had a very strong first half-year. The demand for our sustainably produced specialty fibres once again developed excellently,” Stefan Doboczky, CEO of the Lenzing Group said. “Strategically, we remain fully on track. The largest investment programme in the company’s history is proceeding according to plan and we still expect to start up the new lyocell plant in Thailand in the fourth quarter.”

The group’s net profit for the six-month period rose to €96.1 million (loss: €14.4 million), while CAPEX (expenditures for intangible assets and property, plant and equipment and biological assets) surged to €426.0 million (€268.7 million).

In its guidance for FY21 Lenzing said that it expects a continued increase in demand for sustainably produced fibres for the textile and apparel industry as well as for the hygiene and medical industry. This trend is likely to continue unabated after the Covid19 pandemic, not least due to a number of legislative initiatives.

Fibre2Fashion News Desk (JL)

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