Loss of € 138 million

Fiber giant remains in the red

Turnover rose to 2.66 billion euros in the previous year, reports Lenzing AG CEO Rohit Aggarwal.

(Bild: Krone KREATIV/Lenzing AG/Franz Neumayr, Daniel Scharinger)

The recovery on the relevant markets is sluggish, but demand has risen again and the self-imposed performance program is also having an effect! All this ensures that Lenzing AG feels it is on the right track. This is not yet reflected in earnings after tax, also due to one-off effects. In 2024, the fiber producer made a loss of 138.3 million euros.

Lenzing CEO Rohit Aggarwal announced at the beginning of November that the fiber producer from Upper Austria would continue its recovery when it presented its figures for the first three quarters of the 2024 financial year. Turnover had risen to EUR 1.96 billion, but earnings after tax were in the red at minus EUR 111.1 million.

Turnover increased to 2.66 billion euros
On Friday, the Group published its annual report for the full year. Lenzing reported increased sales volumes, albeit at a low price level compared to 2023. On the other hand, logistics costs rose and energy and raw material costs remained high. In concrete terms, this meant that the fiber giant's turnover rose to EUR 2.66 billion in the previous year. The operating result amounted to 88.5 million euros.

The markets remain challenging and uncertain, and fiber prices have not yet fully recovered. We will therefore continue to implement our program in a very focused manner.

Rohit Aggarwal, Vorstandschef der Lenzing AG

However, earnings after taxes did not escape the loss zone - they amounted to 138.3 million euros. Special effects also had a serious impact here, according to the company. These in turn are related to the fact that there were changes in the ownership structure. B&C Holding Austria has reduced its shares, but the Suzano Group now holds 15 percent of Lenzing.

Costs reduced by more than 130 million euros 
In order to make itself more resistant to crises, a comprehensive performance program was initiated under Aggarwal's predecessor Sielaff, which the Group is continuing to pursue at full speed. The focus is on increased profitability and sustainable cost excellence, as the Upper Austrians call it. In 2024, costs have already been reduced by more than 130 million euros.

The company continues to anticipate an increasing demand for environmentally friendly fibres for the textile and clothing industry as well as the hygiene and medical sectors, it emphasizes. Incidentally, the number of employees fell year-on-year from 7917 to 7816 worldwide.