Lenzing hit by rising commodity prices
Lenzing, the Austrian fibre producer behind the Tencel brand, has posted a 5.2% decline in sales to €1.64 billion ($1.8bn) for the first nine months of the year.
According to the company, the drop was a result of the challenging market conditions for standard viscose, unfavorable exchange rates and lower production volumes.
Earnings before interest, taxes, depreciation and amortization (EBITDA) decreased by 26.8% to €290.6 million ($332m) as the company was forced to pay more for key raw materials, energy and dissolving wood pulp.
“The Lenzing Group is currently operating in a challenging environment. Against this background, we are satisfied with the solid business development and the corporate strategy ‘sCore Ten’ has a positive impact. The new production line in Heiligenkreuz started up successfully and customers’ feedback has been positive,” said CEO Stefan Doboczky.
“While many viscose producers are faced with a very tense profit situation, we are well positioned due to our specialty strategy and still expect a satisfactory full year,” Doboczky added.
Recently, the group announced it will acquire the remaining 30% of its Chinese subsidiary LNF from its state-owned joint venture partner. The purchase is likely to have a negative impact on full-year net profit of approximately €21 million, the company said.
Copyright © 2024 FashionNetwork.com All rights reserved.
