EANS-News: Lenzing AG Lenzing Group: Substantial Revenue and Earnings Increase
in First Half-Year 2016
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6-month report
- Revenue up 8.3% to EUR 1,034.8 mn
- EBITDA rose 54.3% to EUR 195.1 mn
- Free cash flow tripled to EUR 228.3 mn
- Expansion program for specialty fiber production capacities started
Lenzing, August 24, 2016 - The Lenzing Group significantly improved earnings in
the first half-year 2016 compared to the first half-year 2015. The disciplined
implementation of the new group strategy sCore TEN with a clear focus on
profitable growth based on environmentally friendly specialty fibers impacts
already noticeably the company's business results. The Lenzing Group
significantly increased revenue and profitability and substantially improved the
cash flow whilst continuing the reduction of net debt.
At largely unchanged production volumes, consolidated revenue rose 8.3% to EUR
1,034.8 mn as a consequence of higher fiber selling prices and an attractive
product mix compared to the first half-year of 2015. The Lenzing Group also
profited from the increase of spot market prices for viscose fibers.
Consolidated earnings before interest, tax, depreciation and amortization
(EBITDA) improved by 54.3% to EUR 195.1 mn, boosting the EBITDA margin to 18.9%
compared to the prior-year level of 13.2%. Earnings before interest and tax
(EBIT) more than doubled to EUR 129.7 mn. The EBIT margin increased to 12.5%, up
from 6.3% in the previous year. The net profit for the period increased by 83.9%
to EUR 94.6 mn, and earnings per share were up 76.2% to EUR 3.49. The Lenzing
Group continues to show strong cash generation momentum. The cash flow from
operating activities more than doubled to EUR 268.8 mn compared to the
prior-year period. The free cash flow rose three-fold to EUR 228.3 mn.
"The Lenzing Group looks back at a very successful first half-year 2016", says
Stefan Doboczky, Chairman of the Management Board and CEO of Lenzing AG. "On the
one hand, we benefitted from a positive market environment. On the other hand,
we continued our implementation of sCore TEN, our new group strategy, in a very
disciplined and intense fashion. We further optimized the product mix and
profited from higher selling prices thanks to ongoing strong demand for all
Lenzing fibers. All this was clearly reflected in our half-year 2016 business
results, and therefore we also expect a substantial improvement of our business
performance for the full year compared to 2015."
Expansion of production capacities for specialty fibers
As announced on August 2, 2016, the Lenzing Group decided to expand its
production capacities for specialty fibers by a total of 35,000 tons by 2018
with an investment program amounting to EUR 100 mn. The capacity increase will
be mainly carried out at the Austrian sites in Heiligenkreuz, Burgenland and
Lenzing, Upper Austria. This decision is the first step of the strategic
investment program announced by the Lenzing Group.
New TENCEL® recycling fiber about to be launched
The Lenzing Group has developed a new generation of TENCEL® fibers using cotton
fabric waste as a key raw material. This product combines the benefits of the
extremely environmental friendly production process of TENCEL® fibers with an
innovative raw material concept based on recycling. As a result, the new fiber
offers an exciting ecological footprint. Inditex is the first retailer testing
this innovative fibre. Other brands will follow.
Outlook for 2016
The Lenzing Group expects a friendly market environment for the global fiber
industry in the second half of 2016. The market for wood-based cellulose fibers
is currently developing especially favorably due to strong demand at stable
supply.
The strong earnings figures for the first half of 2016 paired with the positive
market environment reinforces the optimism of the Lenzing Group for the full
year. Lenzing expects excellent business results in the financial year 2016 and
consequently a substantial earnings improvement compared to the financial year
2015.
Key Group indicators(IFRS)
(in EUR mn) 1-6/2016 1-6/2015
Revenue 1,034.8 955.4
Earnings before interest,
tax, depreciation and 195.1 126.5
amortization (EBITDA)
EBITDA marginin % 18.9 13.2
Earnings before interest 129.7 60.5
and tax (EBIT)
EBIT marginin % 12.5 6.3
Net profit/loss for the 94.6 51.44
period
CAPEX(1) 40.6 26.0
June 30, 2016 Dec. 31, 2015
Adjusted equity ratio(2) in % 50.2
50.6(4)
Trading working capital(3) 361.6 447.4
Number of employees at 6,085 6,127
period-end
1) Capital expenditures: Equals acquisition of intangible assets, property,
plant and equipment as per statement of cash flows
2) Ratio of adjusted equity to total assets as a percentage
3) Inventories plus trade receivables less trade payables
4) Restatement according to IAS 8 (see note 2 in the consolidated interim
financial statements)
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Further inquiry note:
Lenzing AG
Mag. Waltraud Kaserer
Vice President Corporate Communications & Investor Relations
Tel.: +43 (0) 7672 701-2713
mailto:w.kaserer@lenzing.com
end of announcement euro adhoc
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company: Lenzing AG
A-A-4860 Lenzing
phone: +43 7672-701-0
FAX: +43 7672-96301
mail: office@lenzing.com
WWW: http://www.lenzing.com
sector: Chemicals
ISIN: AT0000644505
indexes: WBI, ATX, Prime Market
stockmarkets: official market: Wien
language: English