In the first quarter of 2022, the Lenzing Group was significantly affected by the extreme developments in global energy and commodity markets. Its revenue grew by 25.7 percent year-on-year to reach € 615 million in the first quarter of 2022, primarily due to continued high demand for wood-based biodegradable specialty fibers and higher fiber prices. Specialty fibers’share of revenue currently stands at 73.3 percent.

The earnings trend reflects trends in energy, raw materials and logistics costs, although the company’s continued focus on measures to improve structural earnings in all regions mitigated this negative effect. Earnings before interest, tax, depreciation and amortization (EBITDA) decreased by 7 percent year-on-year to € 88 mn. The EBITDA margin reduced from 19.3 to 14.3 percent. Net profit for the quarter grew by 14.3 percent to €34.1 million, while earnings per share amounted to € 0.87 (compared to €1.06 in the first quarter of 2021).

Gross cash flow increased by 2 percent to €86 mn in the first quarter of 2022, mainly due to the earnings trend. Cash flow from operating activities decreased by 28.5 percent to €79.7 milllion. Free cash flow amounted to- € 102.9 million (compared to - €99 mn in the first quarter of 2021, particularly due to investing activities in connection with the projects in Thailand and Brazil. Capital expenditure on intangible assets, property, plant and equipment and on biological assets decreased by 13.6 percent to € 182.7 million, of which approximately 44 percent was financed from cash flow from operating activities.