In the year under review, Lenzing revenue increased by 16.9 percent to 2.57 billion euros, primarily as a result of higher fibre prices, while EBITDA decreased by 33.3 percent to 241.9 million euros in 2022.
The net result for the year was minus 37.2 million euros compared with 127.7 million euros in the 2021 financial year, while earnings per share stood at minus 2.75 euros compared with 4.16 euros in the previous year.
Given the trend in earnings and the pronounced deterioration in market conditions, Lenzing launched a reorganisation and cost reduction program in the third quarter of 2022. Implementation of the program is expected to save at least 70 million euros in costs per year. At the same time, the company said, additional measures will be adopted to strengthen free cash flow, which stands at minus 740.7 million for the 2022 financial year. This is mainly attributable to the investments in Brazil and Thailand. The temporary suspension of dividend payments is expected to boost free cash flow.
“Lenzing faced extraordinary headwinds due to the multiple crises last year. Nevertheless, we can look forward with great confidence, as the need for sustainable innovations in the medium and long term is undiminished, while the demand for environmentally friendly fibres will continue to grow. We will make structural adjustments to our cost base and emerge stronger from this crisis,”said Stephan Sielaff, CEO of the Lenzing Group.
As of April 1, 2022, Stephan Sielaff succeeded Cord Prinzhorn as CEO, who had taken over as interim CEO in the fourth quarter of 2021. At the same time, the managing board was reduced to four people. Nico Reiner was appointed as the new chief financial officer as of January 1, 2023, succeeding Thomas Obendrauf. Meanwhile, the mandate of chief pulp officer Christian Skilich was extended early by a further three years until May 31, 2026.
In 2023, the Lenzing Group expects EBITDA to be in a range of 320 million euros to 420 million euros.