Wood-Based Biodegradable Speciality Fibres Make A Robust Contribution To Lenzing’s Strong Operating Results For 2021
Revenue and earnings performance significantly improved despite considerable cost increases
Successful production start at world’s largest lyocell plant in Thailand
Imminent start-up of world’s largest pulp mill of its kind in Brazil
Lenzing recognized as “sustainability champion” several times worldwide – one of only 14 companies awarded “AAA” rating by CDP
March, 2022 ; Lenzing – Thanks to its strategic focus on wood-based specialty fibers and the predominantly positive market environment, the Lenzing Group recorded a significantly improved revenue and earnings performance in 2021 compared to the previous year.
Increasing optimism in the textile and apparel industry as a consequence of the progress made with vaccinations and the continuing recovery in the retail sector ensured a strong rise in demand and prices on the global fiber market, particularly at the beginning of the reporting year.
Revenue Grew By 34.4 Percent To EUR 2.19 Bn.
In addition to the predominantly positive market environment, the focus on specialty fibers such as TENCEL™, LENZING™ ECOVERO™ and VEOCEL™ branded fibers also had a positive impact on revenue growth.
Specialty fibers currently account for 72.3 percent of fiber revenues.
Significant increases in energy, raw material and logistics costs occurred throughout the reporting year.
“Lenzing can be pleased with a strong business year. Demand for our wood-based, biodegradable specialty fibers under the TENCEL™, LENZING™ ECOVERO™ and VEOCEL™ brands continued to perform very well in 2021,” notes Cord Prinzhorn, Chief Executive Officer of Lenzing Group. “Strategically, Lenzing remains on course despite the challenges posed by the global pandemic. With the start of production at our state-of-the-art lyocell plant in Thailand a few days ago, we are further strengthening our leading position as a supplier of eco-friendly specialty fibers. The completion of our pulp mill in Brazil is imminent. We are very proud to be able to realize these projects – which are so important for Lenzing – both on time and within budget,” comments Prinzhorn.
Sustainability is not only a very important element of strategy at Lenzing, but also a guiding principle for innovation and product development.
Lenzing continued to expand its product offering for the textile and nonwovens sectors in 2021.
The third quarter saw the presentation of the first TENCEL™ lyocell fibers made from wood- and orange-based fiber pulp.
The upcycling of orange peels as part of the TENCEL™ Limited Edition initiative represents a further successful step by Lenzing to develop new closed loop solutions together with partners along the value chain.
The introduction of the first carbon neutral fibers on the global nonwovens market under the VEOCEL™ brand comprises a further product innovation from the reporting year that exemplifies Lenzing’s ambitious path in climate protection and the circular economy.
Honored As Global “Sustainability Champion”
Lenzing received several awards worldwide in 2021 for its achievements, especially in the sustainability area: Lenzing was one of only 14 companies worldwide to receive a “AAA” rating from global non-profit environmental organization CDP for its environmental leadership in climate change, water security and forest conservation.
CDP is recognized as the gold standard of environmental reporting worldwide.
Renowned rating agency MSCI upgraded Lenzing’s rating from “A” to “AA”. Lenzing thereby ranks among the top six percent of companies evaluated in its peer group.
This improved MSCI ESG rating also leads to a reduction in interest expenses for Lenzing. Lenzing placed a bonded loan of EUR 500 mn in November 2019, which is linked to its own sustainability performance.
In the EcoVadis CSR rating, Lenzing achieved platinum status for the first time in 2021, ranking it among the top one percent of companies evaluated worldwide in terms of the environment, fair working conditions and human rights, as well as ethics and sustainable procurement.
Lenzing continues to anticipate rising demand for environmentally compatible fibers for the textile and clothing industry as well as the hygiene and medical sectors.
However, the current positive market environment continues to be characterized by uncertainty due to the ongoing pandemic.
Visibility remains limited as a consequence.
Following significant cost increases in 2021, cost pressure on the energy, raw materials and logistics sides is also expected to continue in the first quarters of 2022.
Taking into consideration the aforementioned factors and the imminent commissioning and completion of the key strategic projects, which will already make an initial contribution to earnings from the current financial year, the Lenzing Group expects EBITDA for 2022 to lie significantly above the level of 2021.
