Lenzing, an Austrian cellulose fiber manufacturer, pointed out that under the influence of the new crown epidemic, the company continued to be troubled by Viscose’s price cuts, and both group profits and revenue fell in the first quarter of 2020. .
Compared with US$560 million in the same period in 2019, revenue in the first quarter of 2020 fell 16.7% to 466.3 million euros (equivalent to US$503.6 million), and the company will decline The reason was attributed to the falling price of viscose. On March 31, the price of viscose fell to a record low, down 33% from the same period last year. The impact of the COVID-19 pandemic will further increase pressure on prices and sales.
Net profit in the first quarter fell 58.6% to 17.7 million euros, earnings before interest, tax, depreciation and amortization or EBITDA Profit before amortization fell 24.3% to 69.6 million euros, and the EBITDA margin fell to 14.9% from 16.4%.
At the same time, the market share of special fibers increased from 47.3% in the first quarter of last year to 60.9%.
The COVID-19 crisis has had a serious impact on the entire textile and garment industry and has further intensified price and volume pressure on the global fiber market. CEO Stefan Doboczky said: Lenzing has stood its ground in this extremely difficult market environment and continues to promote the implementation of key plans in Brazil and Thailand.
Lenzing said that although its 2020 operating guidance remains suspended, “relatively solid business development” in the first quarter once again made the group’s corporate environmental responsibility strategy “sCore Ten” is guaranteed.
The company stated: Lenzing will strictly implement its annual “sCore Ten” strategy, with special emphasis on strategic investment plans. These two plans will have a positive impact on the group’s income starting from 2022. significant contribution.
Last month Lenzing cooperated with Palmers Textil AG to establish Hygiene Austria LP GmbH. The new company holds 50.1% of Lenzing and 49.9% of Palmers Textil. It will produce and sell protective masks for the Austrian and European markets starting from May 2020.
