Latest news with #LenzingGroup
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)
Fashion United
2 days ago
- Business
- Fashion United
Lenzing reports revenue growth and profitability in H1 2025
Austrian fibre producer Lenzing AG achieved revenue growth in the first half of the 2025 financial year. Thanks to successful reforms, the company has returned to profitability. Recently, however, Lenzing AG has felt the effects of the increasingly difficult economic climate. "In the second quarter, however, international customs measures and the resulting uncertainty led to noticeable burdens along the textile value chain. This slowed down the recovery of the Lenzing Group," said an interim report published on Thursday. Successful reforms and positive one-off effects boost results In the months from January to June, consolidated revenue amounted to approximately 1.34 billion euros. This corresponded to an increase of 2.3 percent compared to the same period of the previous year. Earnings before interest, taxes, depreciation and amortisation (EBITDA) even increased by 63.3 percent to 268.6 million euros. The development of earnings "benefited significantly from the positive effects of the performance programme", the company explained. In addition, "positive one-off effects from the sale of surplus EU emissions certificates amounting to 30.6 million euros and the valuation of biological assets amounting to 12.5 million euros" were recorded. Lenzing AG posted a net profit of 15.2 million euros. This follows a loss of 65.4 million euros in the first half of the previous year. Despite uncertainties: Management confirms earnings forecast CEO Rohit Aggarwal was satisfied with the group's recent development. However, he warned of the continuing macroeconomic uncertainties. "Lenzing has made further progress on the path to operational recovery in the first half of 2025. Our performance programme is clearly contributing to the improvement in earnings," he explained in a statement. "At the same time, we are seeing noticeable effects of increasing uncertainties in international trade in the second quarter – in particular due to aggressive customs policies. These developments are not only affecting our visibility, but also our results. This makes us all the more determined to continue our measures to sustainably secure the turnaround and further strengthen our margins." Despite the current risks, the group adhered to its annual forecast. Management continues to expect "higher EBITDA compared to the previous year" for 2025. This article was translated to English using an AI tool. FashionUnited uses AI language tools to speed up translating (news) articles and proofread the translations to improve the end result. This saves our human journalists time they can spend doing research and writing original articles. Articles translated with the help of AI are checked and edited by a human desk editor prior to going online. If you have questions or comments about this process email us at info@
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
30-06-2025
- Business
- Yahoo
Closing the Loop at Scale: Andreas Dorner on how RE&UP is Powering Circularity in Textiles
In this exclusive interview, Andreas Dorner, General Manager at RE&UP, reveals how the company is pioneering large-scale textile-to-textile circularity with innovative recycling technologies, robust traceability, and strategic partnerships. Dorner discusses the challenges and opportunities of scaling circular solutions, the importance of cost-competitiveness, and the critical role of collaboration and certification in driving the apparel industry toward a truly sustainable future. Andreas Dorner has served the textile industry for over 15 years, with a strong focus on sustainable fibre innovation and circular economy models. As the former Senior Commercial Director of Textiles at Lenzing Group and now General Manager at RE&UP, Andreas brings global expertise and a trusted network across leading textile retailers and brands. He is recognised as a thought leader and innovator in recycling fibres, having pioneered the first Circular WBCF in 2017 and holding multiple fibre innovation patents. Outside of work, Andreas enjoys hiking, sailing, continuous learning, classical music, history, and travelling. He has been married for 26 years and is the father of two daughters. Just Style (JS): Could you outline the core vision that guides RE&UP and how this shapes your strategic goals? Andreas Dorner (AD): At RE&UP, our vision is simple: make post-consumer textile to textile circularity work at scale. That means we have already developed and implemented technologies that transform end-of-life textiles into high-quality, traceable raw materials and are doing it in a way that's commercially viable for the industry. We're building the backbone for circular fashion; we're not here to be a niche solution. Our strategy reflects that! We're scaling fast, investing in technology and collaborating across the value chain to turn textile waste into a valuable resource, not a liability. JS: How does RE&UP's textile recycling technology differ from other solutions in the market? AD: What sets us apart is our ability to recycle existing post-consumer textile waste – we handle blended textiles at scale, particularly coloured polycotton with elastane, which has long been a pain point in recycling. Our proprietary decolourisation and separation technologies allow us to break down these blends and recover both cotton and polyester fibres that perform very similarly to virgin materials. While many recycling methods result in lower-grade outputs, we produce Next-Gen recycled fibres that can be easily implemented into the textile value chain and are traceable. That's a big win for brands needing both performance and transparency. JS: As you aim to expand globally, what are the anticipated challenges in scaling up and your strategies to address them? AD: Scaling this kind of operation isn't just about more machines; it's about building regional ecosystems that can support textile-to-textile recycling. That includes reliable feedstock sources, local infrastructure and navigating patchy regulatory environments. The good news? We're already the largest player in this space and are doubling our production capacity in Turkey and expanding into Europe to reach 200,000 tons and aiming for 1 million tons by 2030 in the long term. We're also actively planning our first plant outside Turkey, with our sights set on Europe. Where possible, we try to avoid the term 'waste' because what we're really doing is reclaiming value from existing materials—and the industry is starting to see that, too. JS: What environmental impacts have RE&UP's reductions in water use and CO₂ emissions had on local communities? AD: The benefits are tangible. By drastically reducing water use and CO₂ emissions compared to virgin fibre production, we're not just hitting environmental KPIs, we're supporting healthier ecosystems and more sustainable local economies. Our benchmark reflects in LCA, and we're working closely with a leading third-party LCA Auditor Company on these assessments, all backed up with data. Early results are very promising and, once consolidated, will offer a robust footprint for our customers to use in their own reporting. JS: How does RE&UP's business model contribute to a circular economy in the textile industry? AD: Our model is built around closing the loop—literally. We turn post-consumer and post-industrial textiles into high-performance fibres that slot straight back into the supply chain. And because our materials are cost-competitive compared to virgin alternatives, brands don't have to choose between circularity and profitability. That's what makes this model scalable. JS: How has RE&UP managed to maintain cost-competitiveness while prioritizing environmental responsibility? AD: Sustainability doesn't have to come with a price penalty. By optimising efficiency and operating at scale, we're able to offer cost-competitive alternatives to virgin fibres. Our materials deliver on both quality and price and that's key if we want circularity to move beyond pilot projects and into the mainstream. JS: In what ways does RE&UP assist brands with compliance to sustainability regulations such as the EPR and the Green Claims Directive? AD: Brands are under pressure to prove their sustainability claims – and rightly so. We help by providing traceable materials backed by third-party certifications like GRS and RCS, along with robust data to support impact reporting. Whether it's preparing for EPR requirements or navigating the Green Claims Directive, we equip brands with real tools, not just good intentions. JS: How important are GRS and RCS certifications to RE&UP, and how do you ensure product traceability? AD: We see GRS and RCS as a starting point, not the end goal. They provide the foundation of credibility but our internal systems go further. We ensure traceability throughout the process, from material intake all the way to the final product. That kind of transparency gives brands the confidence they need, and regulators the proof they demand. JS: With growing consumer demand for sustainability, how has RE&UP's market positioning and customer response evolved? AD: Sustainability has moved from a niche to a non-negotiable. More than ever, brands are coming to us not just because they want to be circular, but because they have to be. What's changed is the urgency and the fact that customers are now asking the hard questions. Our traceable, high-performing fibres help brands answer those questions with confidence. JS: What are the next steps for RE&UP in terms of innovation and environmental stewardship, and what role do you see for the company in the future of sustainable textiles? AD: We're focused on turning circularity into infrastructure. That means scaling our technology, opening new facilities and collaborating with like-minded players across the value chain. We also co-founded the T2T Alliance, alongside other leading textile-to-textile recyclers, to advocate for better policy and more ambitious standards across Europe. It's not just about doing the right thing as a business; it's about helping shape the future rules of the game. JS: How is RE&UP engaging consumers and brands to raise awareness about textile recycling and circular fashion? AD: Our focus has always been B2B, but consumer awareness is essential. We work closely with our brand partners to bring transparency to the forefront, helping them tell the story of where materials come from and why that matters. We also speak up at industry events, contribute to policy discussions, and share what we're learning along the way. Education is part of the business model. JS: Why do you think consumer behaviour plays a crucial role in driving sustainability in fashion? AD: Because brands listen to their customers. When consumers demand transparency and circularity, it drives real change. But we also believe it's our job to make those sustainable choices easier—to remove the friction. That's why we focus on performance. If our fibres don't match virgin quality, they won't make it into the collections that people actually buy. We're here to make the sustainable option the default, not the compromise. JS: Are there any notable partnerships or collaborations that have helped accelerate RE&UP's mission? AD: Yes—and one we're especially proud of is our ongoing partnership with PUMA, where we've been working together to integrate our Next-Gen fibres into performance-driven collections. It's a perfect example of how sustainability and innovation can coexist without compromise. On a systems level, we're also engaging with governments, recyclers, and NGOs to build an ecosystem that enables true circularity—not just one-off pilots. JS: Andreas, thank you for sharing your expertise and the inspiring work RE&UP is doing to advance circularity in the textile industry. Your insights into the challenges and opportunities of scaling sustainable solutions offer valuable guidance for brands and stakeholders navigating this evolving landscape. We appreciate your openness and commitment to driving real change, and we look forward to seeing how RE&UP continues to shape the future of circular fashion. "Closing the Loop at Scale: Andreas Dorner on how RE&UP is Powering Circularity in Textiles " was originally created and published by Just Style, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Fibre2Fashion
09-05-2025
- Business
- Fibre2Fashion
Lenzing posts strong Q1 gains despite market headwinds
The Lenzing Group, a leading supplier of regenerated cellulosic fibers for the textile and nonwovens industries, reports a continued improvement in its business performance in the first quarter of 2025, although the recovery of global textile markets remained very slow and uneven during the reporting period. While the positive trend in volumes sold continued, prices remained constant at a low level. Raw material, energy and logistics costs continued to be high. Lenzing Group saw strong Q1 2025 gains with revenue up 4.8 per cent to €690.2 million (~$773.0 million) and EBITDA doubling to €156.1 million (~$174.8 million), aided by performance program benefits and special effects. Despite sluggish textile market recovery and high costs, net profit hit €31.7 million (~$35.5 million). The group maintains its 2025 EBITDA growth outlook. Revenue grew by 4.8 percent year-on-year to EUR 690.2mn (~$773.0 million) in the first quarter of 2025. The operating earnings trend largely reflected the positive effects of the performance program. Earnings before interest, tax, depreciation and amortization (EBITDA) rose by 118.8 percent year-on-year to EUR 156.1 mn (~$174.8 million). This also includes positive special effects from the sale of EUR 25.5 mn surplus EU emission certificates and the change in the fair value of biological assets in the amount of EUR 9.2 mn. The EBITDA margin in-creased from 10.8 percent to 22.6 percent. The operating result (EBIT) amounted to EUR 74.3 mn (compared with EUR 1.5 mn in the first quarter of 2024) and the EBIT margin amounted to 10.8 percent (compared with 0.2 percent in the first quarter of 2024). Earnings before tax (EBT) amounted to EUR 35.1 mn (compared with minus EUR 17.8 mn in the first quarter of 2024). The result after tax also improved significantly and was positive again for the first time since the third quarter of 2022 at EUR 31.7 mn (compared with minus EUR 26.9 mn in the first quarter of 2024). 'The Lenzing Group continued on its recovery track in the first quarter of 2025 and achieved significant revenue and earnings growth thanks to our performance program,' notes Rohit Aggarwal, Lenzing Group CEO. 'Uncertainty in the markets and – as a consequence – limited earnings visibility have been further exacerbated by an increasingly aggressive tariffs policy. For this reason, we will not ease up on resolutely implementing the measures we have initiated, in order to complete our turnaround and further strengthen our position as a leading integrated fiber company.' The Lenzing Group's performance program is designed holistically with the overarching objective of significantly increasing long-term resilience to crises and greater agility in the face of market changes. The program initiatives are primarily aimed at improving EBITDA and at generating free cash flow through enhanced profitability, as well as sustainable cost excellence. Extensive actions are being undertaken to strengthen sales activities, such as the acquisition of new customers for the most important fiber types as well as expansion in previously smaller markets, which are exerting a positive impact in terms of revenue. The Managing Board also anticipates significant cost savings. Savings of over EUR 130 mn were already realized in the 2024 financial year. From the current financial year onwards, Lenzing is aiming for recurring annual cost savings of over EUR 180 mn. Cash flow from operating activities amounted to EUR 47.1 mn in the first quarter of 2025 (compared with EUR 120.7 mn in the first quarter of 2024). Cash flow from investing activities amounted to minus EUR 36.1 mn (compared with minus EUR 32.8 mn in the first quarter of 2024). Free cash flow was also positive at EUR 14.5 mn (compared with EUR 87.3 mn in the first quarter of 2024). Cash flow from financing activities amounted to minus EUR 19 mn (compared with EUR 11.1 mn in the first quarter of 2024). Liquid assets (including liquid bills of exchange) decreased slightly by 2.6 percent compared to December 31, 2024, to a level of EUR 439.9 mn as of March 31, 2025. Capital expenditure on intangible assets, property, plant and equipment and biological assets (CAPEX) amounted to EUR 32.7 mn in the first quarter of 2025 (compared with EUR 33.4 mn in the first quarter of 2024), reflecting the ongoing reduction in investment activities. In 2024, Lenzing focused clearly on maintenance and license-to-operate projects as part of its performance program, following significant investments in previous years. Outlook The IMF has significantly downgraded its growth forecasts for both this year and next to 2.8 percent and 3.0 percent respectively. The escalation of international trade conflicts and the risk of inflation returning are seen as major threats to global growth. In times of uncertainty and high living costs, consumers can be expected to remain cautious and thrifty, with negative effects on consumer sentiment and their willingness to spend. The currency environment is expected to remain volatile in regions relevant to Lenzing. In the trend-setting market for cotton, analysts expect a slight increase in stocks to around 18.8 mn tonnes in the current 2024/2025 harvest season, according to preliminary estimates. Lenzing will continue to consistently implement its performance program and expects to leverage further cost potentials and further improve its revenue and margin generation. Having weighed the aforementioned factors, the Lenzing Group confirms its guidance for the 2025 financial year of year-on-year higher EBITDA. However, the current tariff dispute and the high level of uncertainty associated with it are dampening expectations and further limiting the visibility of earnings. In structural terms, Lenzing continues to expect growth in demand for environmentally responsible fibers for the textile and apparel industry, as well as for the hygiene and medical sectors. As a consequence, Lenzing is very well positioned with its strategy and is driving ahead with not only profitable growth in specialty fibers but also 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)
