Lenzing Group's Positive Financial Performance in Early 2024

Lenzing Group reports a 5% revenue rise to EUR 2 billion for the first nine months of 2024. Despite ongoing market challenges, the company's EBITDA increased by 20.3%, reaching EUR 263.7 million, aided by an effective performance program. This initiative helped achieve a free cash flow of EUR 191.8 million, reversing the previous year's negative trend. Operating earnings improved significantly, though high costs for raw materials and energy remained a concern.

The group's strategic efforts focused on cost management and market adaptation, with CEO Rohit Aggarwal underscoring Lenzing's commitment to enhancing global sales and reorganizing its corporate structure. Nonetheless, the net loss widened to EUR 111.1 million due to tax-related factors. Notably, Lenzing successfully issued a USD 650 million green bond through its Brazilian joint venture, reflecting robust investor interest.

The company maintains a cautious outlook, acknowledging limited earnings visibility amid volatile global economic conditions. However, sustained demand for eco-friendly fibers provides a positive long-term trajectory.