LENZING, Austria, 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.

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