Austrian textile firm Lenzing swings back to profit in third quarter

Lenzing Group, an Austrian leader in sustainable specialty fibres, has posted a 32.9 per cent revenue growth to €1.59 billion in the third quarter (Q3) of FY21 ended on September 30, 2021, compared to the revenue of €1.2 billion in the same period of 2020. Net profit during the nine-month period escalated to €113.4 million (Q3 FY20: loss €23.3 million).

 
The performance during the reported period was attributable to a higher sales volume as well as higher viscose prices, which stood at more than RMB 15,000 (renminbi) in May due significantly higher demand for fibres, especially in Asia, according to the company.
 
“Lenzing has enjoyed a strong business performance to date in 2021. Demand for our wood-based, biodegradable specialty fibres under the Tencel, Lenzing Ecovero and Veocel brands is growing very well,” Thomas Obendrauf, chief financial officer at Lenzing Group, said in a press release.

“We stay the course, and the largest investment programme in our company’s history is still running according to schedule. With the imminent commissioning of the lyocell plant in Thailand, we will reach a highly important milestone for both the company and our goal to make the textile and nonwovens industries more sustainable,” Obendrauf added.
 
The company’s EBITDA (earnings before interest, tax, depreciation and amortisation) during Q3 more than doubled to €297.6 million (€138.5 million).
 
In its outlook for FY21, Lenzing said that it anticipates EBITDA to reach €360 mn in 2021. Furhermore, the cellulose fibre manufacture also expects the continued growth in demand for sustainably produced fibres for the textile and apparel industries as well as for the hygiene and medical industries. This trend is likely to continue unabated after the COVID-19 pandemic, not least due to a number of legislative initiatives.