Lenzing has announced that the continued weak development of relevant markets, coupled with very cautious market expectations in 2023, requires a reassessment of its macroeconomic environment.

Taking into account the current lack of market recovery, the previous earnings forecast is not expected to be achieved. The Lenzing Group has therefore adjusted its forecast for earnings development and is assuming EBITDA in a range of EUR 270 million to EUR 330 million for the 2023 financial year.

CEO Stephan Sielaff, commented: “The recovery expected for the second half of the year in the markets relevant to us has not yet occurred. This makes the early measures we took all the more correct. We launched an ambitious cost reduction program back in November 2022, which delivered the expected results ahead of schedule. Building on this, we are implementing a holistic and consistent value creation program with a focus on measures to strengthen profitability and cash flow generation and to exploit the growth potential in the fiber markets through targeted sales activities.”

Lenzing’s CFO Nico Reiner, added: “With this value creation program, we will powerfully overcome the current economic challenges and make Lenzing more resilient in difficult market situations in the future.”

The Lenzing Group will announce further details about the value creation program when it publishes its quarterly results on 3 November 2023.

www.lenzing.com