Lenzing reports 25.7 percent sales growth in Q1

Lenzing Group revenue grew by 25.7 percent to reach 615 million euros in the first quarter of 2022, due to continued high demand for wood-based biodegradable specialty fibres and higher fibre prices.

First quarter EBITDA decreased by 7 percent to 88 million euros and the EBITDA margin reduced from 19.3 to 14.3 percent. Net profit for the quarter grew by 14.3 percent to 34.1 million euros, while earnings per share amounted to 0.87 euros compared to 1.06 euros in the first quarter of 2021.

“Lenzing made a solid start to the 2022 financial year thanks to considerable efforts in an environment of sharply rising costs. Demand for our wood-based, biodegradable specialty fibres also recorded a positive trend in the first quarter,” noted Stephan Sielaff, Lenzing Group CEO in a release.

Lenzing announces management and board changes

The Lenzing supervisory board appointed Stephan Sielaff as the new chief executive officer of the Lenzing Group in March 2022. As of April 01, 2022, Sielaff succeeded Cord Prinzhorn, who took over as interim CEO in the fourth quarter of 2021.

Additionally, CFO Thomas Obendrauf has decided to step down after his contract expires in June 2022. The company added that Thomas Obendrauf will support the company in an advisory capacity until his successor is appointed.

The managing board mandate of chief pulp officer Christian Skilich was prematurely extended by further three years until May 31, 2026.

Personnel changes also occurred on the Lenzing supervisory board. Cord Prinzhorn took over as chairman from Peter Edelmann, who stepped down from the supervisory board at his own request with effect as of April 26, 2022.

Lenzing expects EBITDA for FY22 to exceed FY21 level

Lenzing continues to expect demand for environmentally responsible fibres for the textile and clothing industry as well as the hygiene and medical sectors to grow. However, the company said that trend in the energy and raw materials costs as well as disturbances in the supply chain are currently creating a very challenging market environment.

Earnings visibility remains limited. Taking into consideration the aforementioned factors and the first earnings contributions from the key projects in Thailand and Brazil, the Lenzing Group continues to anticipate that EBITDA for the full 2022 year will lie significantly above the level of 2021.