Lenzing, Austria’s fibre leader, is sharpening its portfolio around premium branded and specialty fibres. Its half-year results, published on August *, ****, put profitability ahead of volume: revenue fell as low-margin volumes were cut, while net result after tax more than doubled and free cash flow improved. The strategy shift, more than the earnings, is the real story.
The half-year scorecard
The market stayed tough, with volatile energy and raw-material prices, subdued consumer demand and intensified competition from Asia. Revenue fell *.* per cent to €*.** billion (~$*.** billion), mainly because Lenzing deliberately reduced low-margin fibre volumes and earned less from external pulp. EBITDA (earnings before interest, tax, depreciation and amortisation) was €***.* million (~$*** million) against €***.* million (~$*** million), and the EBITDA margin (EBITDA divided by revenue) was **.* per cent against **.* per cent. From Q* to Q*, revenue rose to €***.* million (~$*** million) from €***.* million (~$*** million) and EBITDA to €*** million (~$*** million) from €***.* million (~$*** million), supported by pricing measures. chief financial officer Mathias Breuer said the results “confirm both the necessity and the potential” of the strategic realignment.
