The Lenzing Group, a leading provider of regenerated cellulose fibres for the textile and nonwoven industries, continued its recovery trajectory in 2024, despite a sluggish market rebound. The company achieved significant increases in sales volumes, although price levels remained below those of the previous year. Rising logistics costs and persistently high raw material and energy expenses further impacted the business environment.

Lenzing's revenue increased by 5.7% year-on-year to EUR 2.66 billion in 2024, primarily driven by a 10% growth in fibre revenue. The company’s holistic performance programme yielded positive results, with earnings before interest, tax, depreciation, and amortisation (EBITDA) rising by 30.4% to EUR 395.4 million. The EBITDA margin improved from 12.0% to 14.8%. Operating profit (EBIT) amounted to EUR 88.5 million, recovering from a loss of EUR 476.4 million in 2023, while the EBIT margin stood at 3.3% compared to -18.9% in the previous year. However, the net result after taxes remained negative at EUR -138.3 million, significantly improving from EUR -593.0 million in 2023.

“Thanks to decisive measures, we achieved a significant recovery in fibre volumes sold and strong performance in our pulp business despite market weaknesses,” said Rohit Aggarwal, CEO of Lenzing Group. “Our performance programme is proving effective, but market conditions remain challenging, and fibre prices have not yet fully recovered. We will continue to execute our strategic initiatives with focus.”

The company’s comprehensive performance programme aims to enhance long-term resilience and agility. Initiatives are focused on improving EBITDA and free cash flow through enhanced profitability and cost efficiency. Strengthened sales efforts, including acquiring new customers and expanding into new markets, have already yielded positive revenue impacts. Cost-saving measures resulted in over EUR 130 million in savings during 2024.

In addition to revenue and earnings improvements, cash flow from operating activities rose sharply to EUR 322.5 million (up from EUR 160.3 million in 2023). Free cash flow turned positive at EUR 167 million, compared to a negative EUR -122.8 million in the previous year. Liquid assets decreased by 38.2% to EUR 451.7 million by year-end 2024, largely due to loan repayments. Capital expenditure (CAPEX) declined to EUR 156.3 million, reflecting a focus on maintenance and compliance projects.

The income tax expense for 2024 rose to EUR 96.3 million, influenced by a retroactive tax group withdrawal and currency translation effects. Earnings per share stood at EUR -4.06, improving from EUR -20.02 in 2023.

Outlook

The International Monetary Fund (IMF) has slightly increased its global growth forecast for 2025 to 3.3%, but market uncertainties persist due to geopolitical tensions, protectionism, and potential inflation resurgence. Consumer sentiment remains cautious, affecting spending behaviour.

Currency volatility is expected to continue in key markets, while cotton stock levels are forecasted to rise to 18.7 million tonnes in the 2024/2025 season. Lenzing anticipates limited earnings visibility but remains ahead of schedule in executing its performance programme, which is expected to further boost profitability in the coming quarters. The company projects EBITDA growth in 2025 compared to 2024.

Lenzing continues to anticipate increasing demand for environmentally responsible fibres across textile, hygiene, and medical sectors. Its strategy remains centred on sustainable specialty fibre growth and market leadership in sustainability.

www.lenzing.com