Continuing its solid development in the first quarter of 2019, the share of speciality fibres in the total revenue of Lenzing has been 47.3 per cent. The rise has significantly exceeded the prior-year value of 42.1 per cent – and more favourable exchange rates. Despite a much tighter market environment, Lenzing has recorded a slight increase in revenue.
During the reported period, EBITDA dropped by 9.5 per cent to 92 mn euro. In addition to the market environment for standard viscose, this was primarily caused by currency effects, which burdened material and personnel costs. The EBITDA margin dropped from 18.5 per cent in the first quarter of 2018 to 16.4 per cent in the reporting period. EBIT fell by 21.1 per cent to 54.4 mn euro, leading to a lower EBIT margin of 9.7 per cent. Net profit for the period declined by 14.5 per cent from 50 mn euro in the previous year to 42.8 mn euro.
“Our speciality fibre business is still developing very well, which has made us significantly more resilient today than only a few years ago. In order to become even more resistant to market fluctuations, we continue to advance the implementation of the sCore TEN strategy and the planned major projects in Brazil and Thailand with great discipline,” said Stefan Doboczky, Chief Executive Officer of Lenzing.
For Lenzing, sustainability is not only a core value of the corporate strategy but also a key business driver and stimulus for innovation. The focus of the Sustainability Report 2018, which was published in March of this year, is on the wide range of activities the company is engaged in pursuing its mission of greening up the value chain.
Based on the current exchange rates, Lenzing continues to expect its results for 2019 to reach a similar level as in 2018 despite a much tighter market environment for standard viscose. These developments reassure Lenzing in its chosen corporate strategy sCore TEN. Lenzing is very well positioned in this market environment and will continue its consistent focus on growth with speciality fibres.