Austrian regenerated cellulose fibre producer, Lenzing Group, has reported a 5.7 per cent increase in sales for the 2024 financial year, reaching US $ 2.87 billion. This growth was primarily driven by a 10 per cent surge in fibre sales volume.
However, the company’s financial results were hampered by persistent market challenges, including lower price levels compared to the previous year, increased logistics expenses, and sustained high raw material and energy costs.
Consequently, Lenzing Group recorded a net loss after taxes of US $ 151.06 million for 2024, although this represents a significant improvement from the US $ 640.44 million in 2023. This recovery was aided by US $ 142 million in cost savings and the implementation of a performance program aimed at enhancing the company’s resilience and adaptability.
Rohit Aggarwal, CEO of Lenzing Group, said that it was due to the targeted measures, that the company was able to achieve a significant recovery in fibre volumes sold and a strong performance in the pulp business, despite the weak market situation. He asserted that these successes clearly demonstrated the effectiveness of the company’s performance program. He further stated that, compared to 2023, the company was therefore able to present an improved business performance in 2024. He also acknowledged that markets remained challenging and uncertain, and that fibre prices had not yet fully recovered.
Looking forward, Lenzing anticipates further earnings improvements through the continued execution of its performance program, projecting a higher EBITDA compared to the previous year. The company remains optimistic about the long-term demand for environmentally friendly fibres in the textile, apparel, hygiene, and medical sectors.
