- Prachi Singh |
Lenzing revenues in the first quarter of 2020 declined by 16.7 percent in comparison with the prior-year quarter and amounted to 466.3 million euros (504.6 million dollars). The company said in a statement that the main reason was the development of prices for standard viscose and other standard fibers and the impact of the Covid-19 crisis further increased pressure on prices and volumes. EBITDA for the quarter decreased by 24.3 percent to 69.6 million euros (75.3 million dollars) and the EBITDA margin declined from 16.4 percent to 14.9 percent. Net profit for the period was down 58.6 percent to 17.7 million euros (19.1 million dollars) and earnings per share amounted to 0.84 euros compared with 1.65 euros in the first quarter of the previous year.
“The Covid-19 crisis has a severe impact on the entire textile and apparel industry and has further increased the pressure on prices and volumes in the global fiber market. Lenzing held its ground in this extremely difficult market environment and continues to drive the implementation of its key projects in Brazil and Thailand”, says Stefan Doboczky, Chief Executive Officer of the Lenzing Group, adding, “We have achieved our goal of an industrial production of high-quality protective masks together with our partner Palmers and have therefore been able to support Austria and Europe in combating the pandemic as best possible.”
The company further said that prices for standard viscose dropped to a new all-time low of 9,150 RMB/ton by March 31 – up to 33 percent lower than in the prior-year quarter. Lenzing added that comparatively positive development of the specialty fiber business and slightly higher demand for fibers in the medical and hygiene segments partially offset the decline in revenue. The share of specialty fibers increased from 47.3 percent in the first quarter of the previous year to 60.9 percent.
Additionally, the company said after reassessing its original resolution for a dividend distribution of 1 euro, it has decided to propose to the supervisory board and the annual general meeting not to distribute a dividend for the 2019 financial year.
Picture:Lenzing media room