In This Article:
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Revenue: Increased by 6% to EUR2.66 billion in 2024.
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EBITDA: Rose by 30% to EUR395 million in 2024.
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EBITDA Margin: Increased from 12% to 15% in 2024.
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Free Cash Flow: Improved to EUR157 million from minus EUR123 million in 2023.
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Net Loss: Attributable to shareholders amounted to EUR156.6 million.
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CapEx: Decreased to EUR156 million from EUR283 million in 2023.
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Net Financial Debt: Decreased by EUR30 million to EUR1.5 billion at the end of 2024.
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Fiber Sales Volume: Increased by 16% to over 960,000 metric tons in 2024.
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Specialty Fibers Share: Increased to 93% in 2024.
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Cost Savings: Over EUR130 million realized in 2024, with expectations to exceed EUR180 million annually.
Release Date: March 14, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Lenzing AG (LNZNF) reported a 6% increase in revenue to EUR2.66 billion in 2024, driven by higher fiber sales.
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EBITDA rose significantly by 30% to EUR395 million, with the EBITDA margin increasing from 12% to 15%.
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Free cash flow improved to EUR157 million from a negative EUR123 million in 2023, indicating strong cash management.
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The company's performance program led to cost savings of over EUR130 million in 2024, with expectations to increase to EUR180 million in 2025.
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Lenzing AG (LNZNF) increased its share of specialty fibers to 93%, enhancing its market position and premium pricing strategy.
Negative Points
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Global apparel markets remained flat, with Europe experiencing a decline and China stagnating, impacting overall demand.
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Energy and caustic soda prices remained elevated, contributing to higher input costs.
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The company reported a net loss attributable to shareholders of EUR156.6 million, influenced by tax adjustments and currency effects.
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Market visibility remains low, with ongoing economic volatility and geopolitical instability posing challenges.
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Despite improvements, the leverage ratio remains high, with net financial debt at EUR1.5 billion, indicating a need for further debt reduction.
Q & A Highlights
Q: Can you provide more details on the top line effects of your performance program and what you expect for 2024 and beyond? A: Our performance program focuses on three components: upgrading our product portfolio to specialty products, improving price premiums over generic market prices, and enhancing our customer mix. These efforts have significantly improved our fiber sales and margins. While we can't disclose specific numbers, we expect these strategies to continue benefiting us in 2025.