Lenzing revenues increase by 34.4 percent, EBITDA doubles

Revenue at Lenzing AG grew by 34.4 percent to 2.19 billion euros in 2021.

The company said, in addition to the predominantly positive market environment, the focus on specialty fibers such as Tencel, Lenzing Ecovero and Veocel branded fibers also had a positive impact on revenue growth.

The company’s EBITDA almost doubled compared to the previous year to reach a level of 362.9 million euros and the EBITDA margin rose from 11.8 percent to 16.5 percent. Net profit for the year amounted to 127.7 million euros and earnings per share stood at 4.16 euros.

“Lenzing can be pleased with a strong business year. Demand for our wood-based, biodegradable specialty fibers continued to perform very well in 2021. Strategically, Lenzing remains on course despite the challenges posed by the global pandemic,” said Cord Prinzhorn, chief executive officer of Lenzing Group.

In 2024, the company added, more than 75 percent of fiber revenues are expected to derive from the wood-based specialty fiber business. In recent years, the focus of this strategic objective has been on the construction of the new, state-of-the-art lyocell plant in Thailand, which was officially opened on March 03, 2022. The construction of the pulp mill in Brazil strengthens the group’s own supplies of dissolving wood pulp, and thereby also specialty fiber growth in line with the sCore TEN strategy.

Lenzing continues to anticipate rising demand for environmentally compatible fibers for the textile and clothing industry as well as the hygiene and medical sectors. However, the company further said that the current positive market environment continues to be characterized by uncertainty due to the ongoing pandemic. Visibility remains limited as a consequence. Following significant cost increases in 2021, cost pressure on the energy, raw materials and logistics sides is also expected to continue in the first quarters of 2022.

Taking into consideration the aforementioned factors and the imminent commissioning and completion of the key strategic projects, which will already make an initial contribution to earnings from the current financial year, the Lenzing Group expects EBITDA for 2022 to lie significantly above the level of 2021.