In 2020, the Lenzing Group successfully responded to the extremely difficult market environment due to the COVID-19 crisis by implementing a broad package of measures and remains fully on track in terms of its strategy. The measures focused on protecting Lenzing’s employees and partners and on safeguarding its operations. Lenzing flexibly adjusted production volumes and was able to offer its customers the usual delivery service at any time. In addition, Lenzing also intensified measures for structural earnings improvement to mitigate the effect of the pressure on fiber prices and demand for fibers, and reduced its operating costs.

The immediate effects of the COVID-19 crisis increased the pressure on prices and volumes in the textile fiber segment, in particular in the second quarter of 2020. The recovery of demand in the second half of the year, primarily for wood-based specialty fibers such as TENCEL™ Modal and LENZING™ ECOVERO™, had a positive impact on the revenue and earnings development, but could not compensate for losses. Revenue declined by 22.4 percent to EUR 1.63 bn in 2020. The earnings development was supported by measures for structural earnings improvements in all regions. EBITDA (earnings before interest, tax, depreciation and amortization) fell by 39.9 percent to € 196.6 mn. The EBITDA margin decreased from 15.5 percent to 12 percent. Net loss for the year amounted to €10.6 million.