Lenzing Group is lowering expectations for 2023

2023-09-14 19:11:00

Market development continues to be sluggish and market expectations for 2023 are not rosy. Lenzing AG has adjusted its expectations and is lowering its forecasts for 2023.

Taking into account the current lack of market recovery, the previous earnings forecast is not expected to be achieved, according to the Lenzing Group. For the 2023 financial year, these were earnings before interest, taxes, depreciation and amortization (EBITDA) of between 320 and 420 million euros. They have now been revised downwards to between EUR 270 and EUR 330 million.

“The recovery expected for the second half of the year in the markets relevant to us has not yet materialized. This makes the early measures we took all the more correct. We launched an ambitious cost reduction program back in November 2022, which delivered the expected results ahead of schedule. Building on this, we are implementing a holistic and consistent value creation program with a focus on measures to strengthen profitability and cash flow generation and to exploit the growth potential in the fiber markets through targeted sales activities,” says CEO Stephan Sielaff.

And CFO Nico Reiner: “With this value creation program, we will powerfully overcome the current economic challenges and make Lenzing more resilient in difficult market situations in the future.”

Further details on the Value Creation Program are expected to be announced with the publication of the quarterly results on November 3, 2023.