Lenzing Group achieves fourth best full-year results in history
The Lenzing Group’s business developed well in the 2018 financial year. A significantly more challenging market environment led to a decline in revenue as well as earnings compared with the record results of the previous year.
This was primarily caused by lower selling prices for standard viscose, exchange rate effects as well as higher raw material and energy costs. Group revenue declined by 3.7% compared with the previous year to EUR 2.18 billion.
The predicted challenging market environment for standard viscose, plus less favorable exchange rates and a slight decline in sales volume were the key contributing factors. EBITDA (earnings before interest, tax, depreciation and amortization) was down by 24% to EUR 382 million due to price increases for key raw materials and higher energy and personnel costs. Net profit for the year after one-off effects dropped by 47.4 % from EUR 281.7 million in the previous year to EUR 148.2 million.
“Although 2018 proofed to be more challenging than the preceding years, it was, nevertheless, the fourth best year in the company’s history”, says Stefan Doboczky, Chief Executive Officer of the Lenzing Group. “The very positive development of our specialty business in an expected challenging market environment for standard viscose confirms our strategic direction and our ambitious plans. Thanks to its specialty strategy and its strong brands based on innovation and sustainability, the Lenzing Group is significantly more resilient today than only a few years ago. However, we are not immune to global developments, and further efforts and investments in specialty fibers are required to become even more resistant to market fluctuations”, Doboczky adds.