Latest news with #Lenzing
Fibre2Fashion
2 days ago
- Business
- Fibre2Fashion
Lenzing H1 revenue at $1.56 bn; tariff policy slows recovery momentum
The Lenzing Group, a leading supplier of regenerated cellulosic fibers for the textile and nonwovens industries, reported both revenue and earnings growth year-on-year in the first half of 2025. In the second quarter, however, international tariff measures and the resultant uncertainty led to tangible stress along the textile value chain and slowed the Lenzing Group's recovery. Market prices remained at a low level while costs for raw materials, energy and logistics continued to be high. Lenzing Group reported H1 2025 revenue of €1.34 billion (~$1.56 billion) and EBITDA growth of 63.3 per cent to €268.6 million (~$312.3 million), aided by its performance program. Despite Q2 challenges from global tariffs and high costs, Lenzing improved earnings and secured long-term financing. The company expects further cost savings and higher EBITDA in 2025. The Lenzing Group generated revenue of €1.34 billion (~$1.56 billion) in the first half of 2025, which was higher than in the same period of the previous year. The operating earnings trend benefited significantly from the positive effects of the performance program. EBITDA grew by 63.3 percent to €268.6 million (~$312.3 million), which included positive exceptional effects from the sale of surplus EU emission allowances amounting to EUR 30.6 mn and the valuation of biological assets amounting to EUR 12.5 mn. The EBITDA margin rose from 12.5 percent to 20 percent. Earnings before interest and tax (EBIT) amounted to EUR 109 mn (compared with EUR 18.9 mn in the same period of the previous year), which corresponds to an EBIT margin of 8.1 percent (compared with 1.4 percent in the same period of the previous year). Earnings before tax (EBT) amounted to EUR 22.1 mn (compared with minus EUR 22.3 mn in the same period of the previous year). Earnings after tax improved significantly to EUR 15.2 mn (compared with minus EUR 65.4 mn in the same period of the previous year). 'Lenzing made further progress on its path to operational recovery in the first half of 2025. Our performance program is making a clear contribution to earnings improvement. At the same time, we are seeing tangible effects from the growing uncertainties in international trade in the second quarter – particularly as a consequence of the aggressive tariffs policy. These developments not only affect our visibility, but also our earnings. For this reason, we are all the more determined to continue our measures to secure our turnaround in the long term and further strengthen our margins,' notes Rohit Aggarwal, Lenzing Group CEO. The Lenzing Group's performance program is comprehensively geared towards strengthening long-term crisis resilience and enhancing agility in the face of market changes. The aim is to sustainably improve EBITDA and generate free cash flow through increased profitability and consistent cost excellence. Measures such as acquiring new customers for key products and expanding into smaller markets were implemented in order to strengthen sales activities and thereby revenue growth. At the same time, Lenzing is implementing measures to significantly improve its cost structure, which are being reviewed and further developed on an ongoing basis. Over EUR 130 mn in cost savings were already achieved in 2024. Progress was made especially in terms of product costs and product quality. The Managing Board also expects further efficiency gains in the coming quarters, especially in production costs and overhead functions. The ongoing improvements in structures, processes and personnel expenses are expected to lead to an increase in both revenue and margins. The Managing Board anticipates cost savings of in excess of EUR 180 mn in the current financial year. Lenzing has also successfully strengthened its capital structure over the course of the year to date. A syndicated loan of EUR 545 mn was concluded in May. The structure of the loan comprises a EUR 355 mn term loan with a three-year term and a revolving line of credit of EUR 190 mn, also with a three-year term and extension options totaling two years. In addition, a new EUR 500 mn three-year non-callable hybrid bond was successfully placed on the market. With these measures, Lenzing secures its financing until 2027 and can continue to focus fully on implementing its successful performance program to enhance margins and free cash flow as well as to improve the cost position. Cash flow from financing activities amounted to EUR 150.1 mn (compared with EUR 239.6 mn in the same period of the previous year). The reduction is partly due to a higher level of working capital. Free cash flow was also positive at EUR 43.1 mn (compared with EUR 141.8 mn in the same period of the previous year). Unlevered free cash flow amounted to EUR 89.4 mn (compared with EUR 180.4 mn in the same period of the previous year). Liquid assets (including liquid bills of exchange) increased by 66.9 percent compared with December 31, 2024, to a level of EUR 754.0 mn as of June 30, 2025, mainly due to the syndicated loan that was agreed in May. Lenzing also announced personnel changes on its Managing Board during the first half of the year. At the end of March, Walter Bickel relinquished his operational tasks by mutual agreement. Georg Kasperkovitz was appointed as a member of the Managing Board and as Chief Operations Officer (COO) of Lenzing AG with effect from June 1, 2025. As COO, Georg Kasperkovitz took over the management of the company-wide fiber production sites, including the site in Lenzing (Austria). He will also advance the ongoing performance program and, as a consequence, operational cost excellence and the transformation of the company as a whole. Outlook For 2025, the IMF forecasts global growth of three percent, followed by 3.1 percent in 2026 – marking a slowdown compared to the previous year (2024: 3.3 percent). The projection remains below the pre-pandemic historical average. At the same time, the IMF warns of persistently high risks to the global economy: a renewed escalation of trade conflicts, geopolitical tensions, or tighter financing conditions could dampen growth and reignite inflationary pressures. In an environment characterized by uncertainty and a persistently high cost of living, consumers are anticipated to remain cautious. This is exerting a lasting negative impact on their propensity to spend. Given the announced tariff increases, the rise in spending on apparel in the USA in the first half of the year is to be regarded as a temporary, one-off effect and is unlikely to continue over the course of the remainder of the year. The currency environment is expected to remain volatile in regions relevant to Lenzing. In the global bellwether market for cotton, market analysts' current forecasts anticipate a slight increase in stocks to around 16.3 mn tons for the coming 2025/26 harvest season. Lenzing will continue to consistently implement its performance program and will conduct ongoing evaluations in order to leverage further cost potentials and further improve its revenue and margin generation. At present, the Lenzing Group confirms its guidance for the 2025 financial year of year-on-year higher EBITDA. The ongoing tariffs conflict and associated uncertainty are negatively affecting market expectations and are continuing to exert a very restrictive effect on earnings visibility. In structural terms, Lenzing continues to expect growing demand for environmentally responsible fibers for the textile and apparel industry as well as the hygiene and medical sectors. Lenzing is therefore very well positioned with its strategy and is pushing both profitable growth with specialty fibers and the further expansion of its market leadership in the sustainability area. Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged. Fibre2Fashion News Desk (HU)
Fibre2Fashion
23-07-2025
- Business
- Fibre2Fashion
VEOCEL debuts sustainable, high-efficacy wipe fibers at WOW 2025
At World of Wipes (WOW) 2025 in Columbus, Ohio, Lenzing's flagship specialty nonwovens brand, VEOCEL, will introduce VEOCEL Lyocell fibers for Enhanced Cleaning, a new innovation designed to support the next generation of high-performance surface cleaning and disinfecting wipes. Aligned with VEOCEL' s innovation theme, "Unleash Possibilities", this breakthrough is designed to inspire Lenzing's partners to rethink product design through the use of advanced cellulosic fibers. Derived from wood-based raw materials, they offer an alternative to fossil-based synthetics and contribute to the reduction of avoidable plastic waste in wipe applications. Delivering Enhanced Cleaning Performance At WOW 2025, Lenzing's VEOCEL will launch Lyocell fibers for Enhanced Cleaningâ€'wood-based, biodegradable fibers engineered for high-performance wipes. Offering superior wet strength, liquid control, and disinfectant compatibility, they clean up to twice the surface area of synthetics, enabling reduced plastic use and enhanced sustainability across cleaning applications. VEOCEL Lyocell fibers for Enhanced Cleaning are engineered to improve wiping performance through stronger and denser fabrics and enhance the end-user experience. These fibers ensure even liquid distribution, helping to reduce excess dripping and provide greater control during cleaning. Compared to fossil-based alternatives, each wipe can clean up to twice the surface area, offering significantly improved disinfecting efficacy. A key factor contributing to the performance of these new VEOCEL fibers is their compatibility with active or functional ingredients commonly used in disinfectants such as quaternary ammonium compounds (quats). While many other cellulosic fibers require additional chemical treatments to achieve similar functionality, VEOCEL fibers for Enhanced Cleaning are designed through careful selection of raw materials and optimized production methods to exhibit minimal and consistent binding to active ingredients. This seemingly simple yet impactful advancement in fiber properties allows VEOCEL's cellulosic fibers to be used in applications previously dominated by plastic-based materials. In addition, these fibers provide excellent wet strength and form stability, maintaining structural integrity even at lower basis weights. Altogether, these characteristics make them exceptionally well-suited for demanding cleaning environments—from household and personal care to institutional and industrial settings. All VEOCEL Lyocell fibers are wood-based and biodegradable, produced in a closed-loop, resource-efficient process with low emissions to air and water. The Enhanced Cleaning variant maintains these high environmental standards while delivering superb technical performance. "With the introduction of our VEOCEL Lyocell fibers for Enhanced Cleaning, we are unleashing new possibilities for our customers to choose cellulosic fibers in disinfecting wipes, empowering excellent performance while advancing their commitment to environmental responsibility," said Patricia A. Sargeant, Executive Vice President Nonwovens at Lenzing AG . Discover More at WOW 2025 Lenzing will showcase VEOCEL Lyocell fibers for Enhanced Cleaning at WOW 2025, July 21–24, at Tabletop #405. Attendees can learn how this innovation supports hygiene, efficiency, and responsible material use. Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged. Fibre2Fashion News Desk (RM)
Korea Herald
21-07-2025
- Business
- Korea Herald
VEOCEL™'s Lyocell Fibers for Enhanced Cleaning Take Center Stage at World of Wipes 2025
LENZING, Austria, July 21, 2025 /PRNewswire/ -- At the upcoming World of Wipes® (WOW) 2025 in Columbus, Ohio, Lenzing's flagship specialty nonwovens brand, VEOCEL™, will introduce VEOCEL™ Lyocell fibers for Enhanced Cleaning, a new innovation designed to support the next generation of high-performance surface cleaning and disinfecting wipes. Aligned with VEOCEL™' s innovation theme, "Unleash Possibilities", this breakthrough is designed to inspire Lenzing's partners to rethink product design through the use of advanced cellulosic fibers. Derived from wood-based [1] raw materials, they offer an alternative to fossil-based synthetics and contribute to the reduction of avoidable plastic [2] waste in wipe applications. Delivering Enhanced Cleaning Performance [3] VEOCEL™ Lyocell fibers for Enhanced Cleaning are engineered to improve wiping performance through stronger and denser fabrics and enhance the end-user experience. These fibers ensure even liquid distribution, helping to reduce excess dripping and provide greater control during cleaning. Compared to fossil-based alternatives, each wipe can clean up to twice the surface area, offering significantly improved disinfecting efficacy. A key factor contributing to the performance of these new VEOCEL™ fibers is their compatibility with active or functional ingredients commonly used in disinfectants such as quaternary ammonium compounds (quats). While many other cellulosic fibers require additional chemical treatments to achieve similar functionality, VEOCEL™ fibers for Enhanced Cleaning are designed through careful selection of raw materials and optimized production methods to exhibit minimal and consistent binding to active ingredients. This seemingly simple yet impactful advancement in fiber properties allows VEOCEL™'s cellulosic fibers to be used in applications previously dominated by plastic-based materials. In addition, these fibers provide excellent wet strength and form stability [4], maintaining structural integrity even at lower basis weights. Altogether, these characteristics make them exceptionally well-suited for demanding cleaning environments—from household and personal care to institutional and industrial settings. All VEOCEL™ Lyocell fibers are wood-based [5] and biodegradable [6], produced in a closed-loop, resource-efficient process with low emissions to air and water [7]. The Enhanced Cleaning variant maintains these high environmental standards while delivering superb technical performance. "With the introduction of our VEOCEL™ Lyocell fibers for Enhanced Cleaning, we are unleashing new possibilities for our customers to choose cellulosic fibers in disinfecting wipes, empowering excellent performance while advancing their commitment to environmental responsibility," said Patricia A. Sargeant, Executive Vice President Nonwovens at Lenzing AG. Discover More at WOW 2025 Lenzing will showcase VEOCEL™ Lyocell fibers for Enhanced Cleaning at WOW 2025, July 21–24, at Tabletop #405. Attendees can learn how this innovation supports hygiene, efficiency, and responsible material use. , Innovation Project Manager Nonwovens, presented the fiber's development, performance testing and real-world applications in an INDA-hosted pre-show webinar titled "Advanced Cellulosic Solution for Disinfection Wipes".
Fibre2Fashion
08-07-2025
- Business
- Fibre2Fashion
Lenzing & partners boost recycled fibre quality with TENCEL blends
The Lenzing Group, a leading supplier of regenerated cellulosic fibers for the textile and nonwovens industries, has unveiled innovative fabric blends that address one of fashion's most persistent circularity challenges: maintaining premium quality while incorporating significant recycled content. Through strategic manufacturing partnerships, Lenzing has successfully demonstrated how its responsibly sourced and resource-efficiently produced TENCEL Lyocell fibers transform the unpredictable quality of mechanically recycled natural fibers into consistent, commercially-viable fabrics. The innovations, developed in partnership with spinner Marchi & Fildi S.p.A, knitter Maglificio Maggia, weaver Destro Fabrics, and knitwear manufacturer Madiva, showcase how TENCEL Lyocell - LF, TENCEL Lyocell - LFH, and TENCEL Lyocell - A100 fibers overcome the inherent irregularity and inconsistent quality typically associated with recycled natural fibers. Lenzing has unveiled new fabric blends combining TENCEL Lyocell fibres with recycled cotton, silk, and wool to address circularity challenges in fashion. Developed with Italian partners, the blends offer premium quality, softness, and colour performance. These innovations, showcased at Milano Unica 2025, prove recycled content can scale without compromising quality. 'As brands increasingly commit to incorporating recycled content, they are tirelessly seeking practical solutions that maintain quality standards,' said Carlo Covini, Textile Accounts Manager for Italy/Switzerland at Lenzing . 'By combining the inherent qualities and environmental benefits of our TENCEL Lyocell fibers with mechanically recycled cotton, silk, and wool, we're bridging the quality gap that has limited recycled content adoption. This isn't just a material innovation – it's a pathway for brands to explore what's possible in circular fashion while delivering on the premium quality consumers expect.' Targeted fiber selection unlocks recycled material potential The approach leverages distinct TENCEL Lyocell fiber variants, including those with Micro technology, to address specific recycled material challenges. Low-fibrillating TENCEL Lyocell - LF and TENCEL - LFH fibers contribute exceptional softness and processing stability, while non-fibrillating TENCEL Lyocell - A100 enables brilliant color uptake and performance in functional and home applications. These attributes are particularly valuable when working with inherently inconsistent recycled fibers. This precision approach has yielded diverse applications: premium knits combining TENCEL Lyocell - A100 with recycled silk, wool or cashmere; versatile apparel fabrics blending TENCEL Lyocell - LF with varying percentages of recycled cotton; and performance constructions incorporating world-first, Cradle to Cradle-Certified elastane ROICA V550 alongside TENCEL fibers and recycled content. "This project allows us to take our expertise in mechanical fiber recycling to the next level," says Alberto Grosso, Business Development Manager at Marchi & Fildi Group. "Exploring new potential applications for recycled fibers in collaboration with internationally recognized companies is a unique opportunity for us to expand our yarn offering with varieties tailored to specific market demands." 'We are very happy to be involved by Lenzing in its projects since supply chain projects are always the most successful ones; in this case, the chance to use recycled silk together with TENCEL is a great opportunity to mix both sustainability and luxury. We really hope the brands will appreciate this project', explained Giovanna Maggia, Board Director at Maglificio Maggia. Alberto Ottocento, Sales Manager, Destro Fabrics added: "Destro has an important part to play within this collection and we are committed to using recycled materials, including cotton and poly yarns. Thanks to the collaboration with Lenzing, it allows us to expand our collection, incorporating the recycled TENCEL fibers, blended with our recycled cotton, that enables us to offer a softer, more comfortable range of recycled fabrics with a pleasant touch." Paola Botta, Production Manager at Madiva explained; "We are thrilled to be part of this innovative project alongside Lenzing and Marchi & Fildi. We strongly believe in the value of research and sustainable innovation, and being able to contribute our know-how and Italian machinery to the production of cutting-edge yarns is a source of great pride for us. The two tests carried out – one with a composition of 70% TENCEL Lyocell and 30% raw recycled cotton, the other with 50% TENCEL Lyocell and 50% raw recycled cotton, both designed for piece dyeing – gave life to a compact knit, with a final weight of 120 g/m², obtained using a yarn with a count of 1/50,000. Combining Italian craftsmanship with our valued supply chain partners to create high-quality fabrics is at the heart of our work." Circularity without compromise The partnership demonstrates that circular materials need not compromise quality or performance. By strategically combining mechanically recycled natural fibers with TENCEL Lyocell fibers, which are made from wood, a natural raw material that is both gentle on the skin and the environment, the resulting fabrics deliver both sustainability benefits and premium performance. Crucially, this approach addresses the challenge of scale in circular materials. While recycled fibers have traditionally been limited to small percentages due to quality concerns, these blends maintain commercial performance with recycled content ranging from 25% to 50%, depending on the application. These fabric innovations, to be showcased during Lenzing's appearance at Milano Unica, July 8–10, 2025, at Fiera Milano (Hall 3, booth A16), represent Lenzing's broader vision of driving collaborative innovation across the global textile value chain – proving that when fiber technology aligns with manufacturing expertise, circular principles can move from aspiration to implementation across diverse market segments and product categories. Note: The headline, insights, and image of this press release may have been refined by the Fibre2Fashion staff; the rest of the content remains unchanged. Fibre2Fashion News Desk (HU)
Yahoo
24-06-2025
- Business
- Yahoo
Lenzing's Krishna Manda Addressed Circularity on the Global Fashion Summit Stage
Combatting the fashion industry's environmental footprint is going to take an international initiative. Uniting 1,000 key players in the industry including pioneers, policymakers and innovators, the Global Fashion Summit earlier this month sought to tackle the 'Barriers and Bridges' in sustainability, addressing the hurdles and turning them into levers for change. Presented by the nonprofit Global Fashion Agenda, the three-day event on June 3-5 in Copenhagen featured a program of over 100 speakers to address five key themes: innovation, capital, courage, incentives and regulation. More from Sourcing Journal How the Garment Supply Chain's Gender Pay Gap Undermines Social Compliance Can Fashion's 'Bridges' Overcome Its 'Barriers'? Innovation Was on Display as Lenzing Showcased TENCEL™ and LENZING™ ECOVERO™ at Fashion InStyle On the second day of the summit, Lenzing's vice president of corporate sustainability Krishna Manda spoke on the panel 'Tracking Progress: Operationalizing Circularity' alongside executives from Tommy Hilfiger, H&M Foundation and the World Business Council for Sustainable Development (WBCSD). Part of the agenda's Capital vertical, the discussion explored how circularity initiatives impact climate and nature goals, strategies for preparing supply chains for stronger circular shifts, and the role of traceability as a cornerstone of trust. Panelists also unpacked tech enablers for transparency and strengthening reporting capabilities to equip investors and regulators with the data needed to overcome longstanding barriers to circularity. Read more on Carved in Blue. This article is one of a series on SJ Denim from Lenzing's Carved in Blue denim blog. From conversations with the experts behind the mills that make some of the world's most-wanted denim to the global brands bringing novel denim made with TENCEL™ Lyocell and Modal to the market, Carved in Blue shares the stories of those whose roots run deep with denim. Visit
