Thanks to its strategic focus on wood-based specialty fibres and the predominantly positive market environment, the Lenzing Group recorded a significantly improved revenue and earnings performance in 2021 compared to the previous year.

Increasing optimism in the textile and apparel industry as a consequence of the progress made with vaccinations and the continuing recovery in the retail sector ensured a strong rise in demand and prices on the global fibre market, particularly at the beginning of the reporting year.

Revenue grew by 34.4% to EUR 2.19 billion. In addition to the predominantly positive market environment, the focus on specialty fibres such as Tencel, Lenzing Ecovero and Veocel branded fibres also had a positive impact on revenue growth. Specialty fibres currently account for 72.3% of fibre revenues.

Significant increases in energy, raw material and logistics costs occurred throughout the reporting year. Earnings before interest, tax, depreciation and amortization (EBITDA) almost doubled compared to the previous year to reach a level of EUR 362.9 million (after EUR 192.3 million in 2020). The EBITDA margin rose from 11.8 percent to 16.5 percent. Net profit for the year amounted to EUR 127.7 million (after EUR minus 10.6 million in 2020), and earnings per share stood at EUR 4.16 (after EUR 0.24 in 2020).

“Lenzing can be pleased with a strong business year. Demand for our wood-based, biodegradable specialty fibres under the Tencel, Lenzing Ecovero and Veocel brands continued to perform very well in 2021,” noted Cord Prinzhorn, Chief Executive Officer of Lenzing Group.

“Strategically, Lenzing remains on course despite the challenges posed by the global pandemic. With the start of production at our state-of-the-art lyocell plant in Thailand a few days ago, we are further strengthening our leading position as a supplier of eco- friendly specialty fibres. The completion of our pulp mill in Brazil is imminent. We are very proud to be able to realize these projects – which are so important for Lenzing – both on time and within budget,” commented Prinzhorn.

Specialty fibres are Lenzing’s great strength. In 2024, more than 75% of fibre revenues are expected to derive from the wood-based specialty fibre business. In recent years, the focus of this strategic objective has been on the construction of the new, state-of-the-art lyocell plant in Thailand, which was officially opened on 3 March 2022. This project was completed both on time and within budget. The new production plant, which is the largest of its kind in the world with a nominal capacity of 100,000 tonnes per year, will help to better serve growing consumer demand for Tencel and Veocel lyocell fibres.

The construction of the pulp mill in Brazil strengthens the Group’s own supplies of dissolving wood pulp, and thereby also specialty fibre growth in line with the sCore TEN strategy. Implementation of the project continues to progress to schedule despite the challenges posed by COVID-19.

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