#Yarn & Fiber

2024-03-21

Lenzing Group's financial performance in 2023: Overcoming challenges with resilience

In 2023, the Lenzing Group, a key player in regenerated cellulosic fibers, faced challenges with subdued demand and rising raw material costs, impacting earnings negatively. Despite stable revenue of EUR 2.52 bn, primarily due to low fiber prices and weaker demand, specialty brands maintained resilience. EBITDA increased by 25.4% to EUR 303.3 mn, but EBIT stood at minus EUR 476.4 mn due to impairment losses.

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."

Lenzing reports improved half-year results and advances strategic transformation

Despite a persistently challenging market environment in the first half of 2026, characterized by volatile energy and raw material prices, subdued global consumer demand and intensified competition from Asia, the Lenzing Group significantly improved its financial performance. Net result after tax more than doubled to EUR 35.6 million, compared with EUR 15.2 million in the first half of 2025. Free cash flow increased to EUR 45.8 million, while EBITDA amounted to EUR 239.2 million. Revenue totaled EUR 1.27 billion, compared with EUR 1.34 billion in the previous year.

Expansive innovations converge in Shanghai as Yarn Expo Autumn 2026 opens doors next week

With just days to go, industry enthusiasm is building for the opening of Yarn Expo Autumn, Asia’s premier yarn and fibre trade fair, running from 25 – 27 August at the National Exhibition and Convention Center (Shanghai). Across 27,000 sqm in Hall 8.2, buyers will find nearly 600 exhibitors from 14 countries and regions, spread across seven specialised zones that range from cutting-edge man-made and regenerated fibres to time-honoured cashmere and silk. Beyond the extensive sourcing options, a fringe programme of trend showcases, presentations and product launches rounds out the three¬day event with design, innovation and market intelligence.

Dornbirn GFC 2026 expands conference program with new thematic sessions

For 65 years, Dornbirn GFC has stood for innovation and is one of the world’s leading conferences in the fiber industry. From September 16 to 18, 2026, the international fiber community will meet in Dornbirn, Austria, to discuss current trends, technological developments, and forward-looking solutions. More than 600 experts from industry and academia from over 30 countries are expected to attend. With around 100 presentations by renowned speakers, a 2,5-day conference program, and three parallel presentation rooms with moderated sessions, Dornbirn GFC provides a first-class platform for knowledge exchange, networking, and international collaboration. Together, participants will generate ideas and impulses that will sustainably shape the future of the global fiber industry.

Heberlein reinforces its commitment to the Chinese market

Heberlein, globally recognised as a leading provider of air interlacing and air texturing jets for synthetic filament yarns, is consolidating its success in the Chinese market with its APh- and APe-series for DTY applications. Particularly in the field of Air Covering, Heberlein technologies combine excellent quality with significant savings in compressed-air consumption. A new service hub in Shengze City underlines the company’s long-term commitment in the Chinese market.

RE&UP’s Next-Gen Cotton fibers power Zalando private label t-shirt collection crafted from innovative recycled textiles

RE&UP Recycling Technologies’ Next-Gen Cotton powers a new collection from Zalando’s private labels, marking a step forward in bringing textile-to-textile recycled fibers into commercial fashion production. Launching on Zalando in August, the collection comprises five t-shirts across YOURTURN by Zalando and Even&Odd by Zalando, made from a circular-knit fabric blending 80% organic cotton with 20% RE&UP Next-Gen Cotton — textile-to-textile recycled fiber produced from textile waste. This is the first time RE&UP's recycled fibers feature in Zalando's private label assortment.

Heimtextil Trends 27/28: ‘Home-Maxxing’ between performance and respite

Sleep better, recover faster, live more efficiently: the desire for optimisation has long since reached our homes. Under the title ‘Home-Maxxing – The Performance of Everyday Living’, Heimtextil Trends 27/28 show how our relationship with efficiency-driven thinking and technology is influencing the design of spaces and textiles. The more sleep, wellness, routines, materials and spaces are optimised, the stronger the desire for a home that does not demand even more of us.