Lenzing Group Sees Notable Financial Growth in Q1 2024

The Lenzing Group, a prominent supplier of regenerated cellulose, reported significant growth in its financial results for the first quarter of 2024. According to the latest figures, revenue increased by 5.7 percent to EUR 658.4 million compared to the same period last year. This growth is mainly due to a rise in fiber sales volumes.

Earnings before interest, tax, depreciation, and amortization (EBITDA) also showed a remarkable improvement, more than doubling to EUR 71.4 million from EUR 29.7 million in Q1 2023. Additionally, Lenzing experienced a positive free cash flow of EUR 87.3 million, a significant turnaround from a negative cash flow in the previous year.

Despite challenges such as unchanged fiber prices and high raw material costs compared to 2019, the company has confirmed its EBITDA guidance for the remainder of 2024. The effective implementation of Lenzing’s performance program is credited with contributing to these financial gains. The program focuses on generating free cash flow and improving EBITDA through revenue growth and cost management.

Moreover, Lenzing's Supervisory Board has recently appointed Walter Bickel as the Chief Transformation Officer to support the ongoing strategic initiatives. Capital expenditures were monitored closely, totaling EUR 33.4 million, primarily allocated to essential maintenance and operational projects.