Lenzing: New guidance for FY 2020 as Covid-19...
Lenzing

New guidance for FY 2020 as Covid-19 impacts sales

Lenzing

As a result of the global Covid-19 crisis, the producer of cellulosic fibers, Lenzing AG, Lenzing/Austria, suspended its guidance for 2020. Whilst it remains difficult to give a precise outlook for 2020, Lenzing assumes from today’s perspective that the revenue generation and operating performance of the remaining 2 quarters will exceed those of the 2nd quarter (Q2).

In the first half (H1) of 2020, the company faced a historically difficult market environment with increased pressure on prices and volumes resulting from the corona crisis. Sales declined by 25.6% from €1.09 billion to €810.2 million in the H1/2020. In addition to price effects, the company also felt the decline in demand for textile fibers in all regions. The slightly higher demand for fibers in the medical and hygiene segments could not offset the losses.
EBITDA fell by 46.6% to €96.7 million in H1/2020. The EBITDA margin decreased from 16.6% to 11.9%. Net profit for the period amounted to €1.5 million (H1/2019: €78.8 million).
The 76th Annual General Meeting of Lenzing AG resolved on June 18, 2020, not to distribute a dividend for the 2019 financial year.

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