Net loss amounted to EUR 593 mn. The performance program aimed at enhancing resilience and cutting costs is yielding positive results, with over EUR 100 mn in annual cost savings expected. Positive free cash flow in the latter half of 2023 reached EUR 42.7 mn. Capital expenditure decreased to EUR 283.6 mn, while liquidity rose by 61.3% to EUR 731 mn by December 31, 2023.

“The anticipated recovery of markets relevant to the Lenzing Group has failed to materialize to date. Subdued demand and the still sharply increased raw material and energy costs have led to a result in 2023 that we are not satisfied with,” notes Stephan Sielaff, Chief Executive Officer of the Lenzing Group. “This makes the measures we have taken decisively and at an early stage to keep Lenzing on track and further boost its resilience to crises all the more significant.”

Nico Reiner, Lenzing Group CFO, adds: “This performance program is a powerful instrument to tackle the current economic challenges and enhance Lenzing’s resilience to crises. We are very satisfied with how the program has unfolded so far. The cash flow trend in the second half of the year shows that these measures are taking effect.”

In the third and fourth quarters of 2023, Lenzing generated positive free cash flow of EUR 27.3 mn and EUR 15.4 mn respectively (compared with minus EUR 132.3 mn in the first quarter and minus EUR 33.1 mn in the second quarter of 2023).

"Further progress with “Better Growth” strategy

Lenzing made strides in implementing its “Better Growth” strategy, focusing on specialty fibers like TENCEL™ and LENZING™ ECOVERO™. Modernization efforts in Nanjing, China, and Purwakarta, Indonesia, aimed at sustainability and quality enhancements.

Sustainability recognition

Lenzing garnered accolades for sustainability achievements, including triple “A” ranking by CDP and Platinum Status by EcoVadis. Its brands, notably TENCEL™, maintained strong global visibility.

Outlook and challenges

While IMF forecasts slight global economic growth, risks persist, including geopolitical tensions and inflation. Consumer sentiment remains subdued, impacting markets crucial for Lenzing. Volatility in currency and cotton markets adds uncertainty.

Performance and future prospects

Lenzing’s performance program targets positive cash flow, revenue growth, and cost efficiency. With expectations of increased demand for eco-friendly fibers, Lenzing remains optimistic about future growth and sustainability goals, anticipating higher EBITDA for 2024."