In H1, FY25, a key supplier of regenerated cellulosic fibers, Lenzing Group, reported a significant increase in both revenue and earnings compared to the same period the previous year.

The company's revenue increased to €1.34 billion, while its EBITDA (earnings before interest, tax, depreciation, and amortization) rose by 63.3 per cent to € 268.6 million. This strong performance was boosted by one-time gains from selling surplus EU emission allowances and the valuation of biological assets.

However, the company showed signs of a slowdown in Q2. According to Rohit Aggarwal, CEO, international tariff measures and the resulting market uncertainty put pressure on the textile value chain. Market prices for the company's fibers remained low, while the cost of raw materials, energy, and logistics stayed high.

Despite these challenges, Lenzing's ‘performance program; is proving successful. This initiative is designed to improve the company's long-term resilience and adaptability. By focusing on boosting profitability and cutting costs, the program has already made a clear contribution to earnings improvement. The company had already achieved over € 130 million in cost savings in 2024 and expects to exceed €180 million in savings this year.

Lenzing's strategy includes acquiring new customers, expanding into smaller markets, and making its cost structure more efficient. These efforts are expected to lead to further improvements in both revenue and margins in the coming quarters. The company has also successfully strengthened its capital structure, and the management team remains committed to securing a long-term turnaround and strengthening its margins.