Lenzing, a major supplier of rayon and other cellulosic fabrics to the sportswear sector, suffered a 6.0 percent decline in total sales to €496.5 million in the first quarter although sales volumes for its fibers were 13 percent higher than a year ago. The Austrian company generated nevertheless a better-than-expected Ebitda margin of 13.0 percent, down from 17.6 percent in the year-ago period, thanks to an optimized cost structure. The net profit fell to €20.9 million from €48.4 million. The management feels that the recent drop in cotton prices will affect the demand and the pricing for its fibers. Going forward, Lenzing wants to place a stronger focus on its two major brands, Lenzing Modal and Tencel.

Topics