- Prachi Singh |
Revenue decreased by 5.2 percent to 1,636.2 million euros (1,874 million dollars) at Lenzing Group in the first three quarters over the comparative period of the previous year. The company said, apart from the high starting base, this was primarily attributable to the expected challenging market environment for standard viscose, less favourable exchange rates and lower production volume. Net profit for the period dropped by 39 percent to 133.8 million euros (153 million dollars), while earnings per share equalled to 5.06 euros compared to 8.12 euros last year.
“The Lenzing Group is currently operating in a challenging environment. Against this background, we are satisfied with the solid business development and the corporate strategy sCore Ten has a positive impact. The new production line in Heiligenkreuz started up successfully and customers’ feedback has been positive,” said Stefan Doboczky, Chief Executive Officer of the Lenzing Group in a statement.
EBITDA declined by 26.8 percent to 290.6 million euros (333 million dollars) due to price increases for key raw materials and higher energy and dissolving wood pulp prices, while the EBITDA margin dropped from 23 percent to 17.8 percent. EBIT fell by 36.2 percent to 190.3 million euros (218 million dollars), leading to a lower EBIT margin of 11.6 percent.