Lenzing introduces cost saving program to boost growth
The Lenzing Group reported revenue growth of 24 percent year-on-year to reach 1.97 billion euros, primarily due to higher fibre prices.
EBITDA for the period decreased by 11.6 percent to 263 million euros, while net profit decreased by 33.9 percent to 74.9 million euros, and earnings per share amounted to 2.16 euros in the first three quarters compared to 3.77 euros in the first three quarters of 2021.
“We are experiencing distortions in energy and commodity markets which are weighing on consumer sentiment and significantly limiting our view of short to medium-term business trends,” said Stephan Sielaff, Lenzing Group CEO.
“For this reason we have launched a global program that will already lead to initial cost savings in the short term and also strengthens Lenzing for the long term,” Sielaff added.
The company said in a statement that the market environment deteriorated sharply, especially during the course of the third quarter, and the worsening consumer climate placed additional pressure on Lenzing’s business performance. In addition to lower demand, the earnings trend particularly reflects the sharp rise in energy and raw material costs.
The company added that the earnings trend and the significant deterioration in the market environment led the Lenzing managing board to launch a reorganisation and cost reduction program. The program is already being implemented and is expected to save at least 70 million euros in costs annualised once fully implemented.