From the Sector

• Revenue up 4.8 percent year-on-year to EUR 1.31 bn in the first half of 2024
• Performance program shows effect: EBITDA up 20.4 percent year-on-year to EUR 164.4 mn in in the first half of 2024
• Free cash flow of EUR 141.5 mn (compared with minus EUR 165.4 mn in in the first half of 2023)
• Lenzing confirms EBITDA guidance for 2024

The Lenzing Group reports a gradual improvement in its business performance in the first half of 2024. As expected, the recovery of the markets relevant to Lenzing proved to be sluggish. Although fiber sales volumes increased, fiber prices remained at a low level. The cost of raw materials and energy remained high. At the same time, logistics costs rose significantly in the reporting period.

Outlook
The IMF left its growth forecast for 2024 unchanged at 3.2 percent and raised it to 3.3 percent for 2025. Nevertheless, a number of risks for the global economy remain.

Forecasting future economic growth is rendered more difficult by smoldering global conflicts, trade disputes, and the uncertain outcome of elections, including the USA and the EU.

Consumers are holding back on unnecessary purchases in an environment of rising prices, falling real wages in some cases, and concerns about economic growth. This is hampering a revival of the consumer apparel market, which is important for Lenzing.

The currency environment is expected to remain volatile in the regions relevant to Lenzing.

In the trend-setting market for cotton, a reduction in stock levels and a stable price trend at a low level is expected for the remainder of the 2023/2024 harvest season.

Earnings visibility remains limited overall.

Revenue and earnings in the first half of the year exceeded Lenzing’s expectations, despite the persistently difficult market. Lenzing is ahead of schedule with the implementation of its performance program. The company expects that the measures will make a greater contribution to further improving earnings in the coming quarters.

Taking the aforementioned factors into consideration, the Lenzing Group confirms its guidance for the 2024 financial year of year-on-year higher EBITDA.

Structurally, Lenzing continues to anticipate growth in demand for environmentally responsible fibers for the textile and clothing industry as well as for the hygiene and medical sectors. As a consequence, Lenzing is very well positioned with its strategy and is pushing both profitable growth with specialty fibers and the further expansion of its market leadership in the sustainability area.

Ontex Group NV announces the launch of enhanced youth pants this fall. The pants are designed to reduce the psychological impact of incontinence during adolescence, offering protection and discretion.

The new Ontex youth pants are tailored for children aged 3 to 15 who struggle with bladder control at night, despite staying dry during the day, or have some disability leading to loss of bladder control.

The pants are produced by Ontex plants using its growing HappyFit product platform and will be available through retailers and Ontex’s online sales channels in Europe, with room for expansion to other regions. The pants are constructed combining absorbent materials for heavy bedwetting protection, a chassis with soft and quiet materials for discretion that also offers an improved fit. The production will also have a significantly lower impact on the environment vs previous concepts. During the production, waste is also minimized.

Bedwetting is a common issue, affecting many children. Research^[1] shows that 15% of children still wet the bed in primary school, with boys significantly more likely to experience incontinence. Bedwetting mainly occurs at night and is the second most common chronic childhood condition after allergic disorders. Factors contributing to bedwetting include sleep arousal difficulties, nocturnal polyuria (excessive nighttime urine production), and bladder dysfunction.

[1] https://www.abct.org/fact-sheets/bed-wetting/

Digital Wave Technology announces its continued partnership with Dovetail Furniture, one of the largest importers and wholesale distributors of fine handcrafted furniture on the West Coast (USA). Dovetail Furniture has signed a multi-year agreement to leverage Digital Wave Technology’s product experience management (PXM) solution as a key part of its technology footprint.

Dovetail Furniture, known for its meticulously curated collections and on-trend designs, has partnered with Digital Wave Technology to provide intricate product details via the solution provider’s PXM system to ensure efficiency and accuracy. Digital Wave’s PXM, which includes product information management (PIM), master data management (MDM), and digital asset management (DAM), helps the organization:

• Drive improved efficiency and tailor business processes to its unique needs
• Provide a single version of the truth across all channels
• Leverage workflow automation critical to its product information management process

Kraig Biocraft Laboratories, Inc. announces that it has entered the rapid growth rearing phase for its third spider silk production cycle of the season. During this phase, the silkworms grow exponentially in preparation for spinning the Company’s proprietary recombinant spider silk cocoons.

Over the last week, the Company has taken steps to add additional production space to accommodate the rapidly growing silkworms during this phase. The Company continues to closely monitor the health and performance of the entire silkworm colony during this period of significant growth. Reports from the Company’s rearing team continue to show that the BAM-1 Hybrids are the most robust production strain that the Company has ever fielded.

As previously reported, the Company has adopted a batch-rearing process to minimize overcrowding and level loading the need for fresh, dry mulberry during the traditional rainy season. This approach is designed to further support silkworm colony health and ensure optimal rearing and cocooning conditions.

Azonprinter Company, a company in the Direct-To-Film (DTF) printing industry, launches its Universal Electronics Kit. This solution addresses the critical challenges of the DTF process, delivering quality, safety, and reliability for apparel and material decoration.

DTF printing has revolutionized the decoration industry with its quality and durability. However, common challenges such as unreliable ink, powder, and film quality, and concerns over the safety and durability of automatic powder electronics during extended unattended operations, have persisted. Azonprinter’s Universal Electronics Kit is designed to overcome these hurdles, ensuring a seamless and superior DTF printing experience.

Azon's Universal Electronics Kit is meticulously engineered to guarantee performance and safety, outperforming the alternatives currently on the market. With an open-source programming platform, the kit provides limitless customization possibilities, empowering users to tailor their DTF process to their precise needs. Built for durability, Azon's electronics kit ensures smooth, safe operation even during extended unattended use, mitigating risks associated with inferior quality products.

Better Cotton has announced the appointment of two new co-chairs and five new members to its Council.  

The new co-chairs are Bill Ballenden, a newly elected member and the Head of Sustainability and Innovation at Louis Dreyfus Company (LDC) Cotton, and Tamar Hoek, Senior Policy Director for Sustainable Fashion at Solidaridad. Together, they will execute the duty of chair, acting both as internal and external ambassadors for Better Cotton and ensuring policy decisions are presented to the council and appropriately considered.

Better Cotton has also welcomed representatives from Marks & Spencer, J.Crew, leading Pakistani spinner Nishat Chunian and Mozambican farmer body FONPA, to its council, who join with a retroactive start date of 1 June 2024.

In addition to Bill Ballenden, other newly elected members of the Better Cotton Council include:

• Doug Forster, Chief Sourcing Officer at J.Crew Group, has been instrumental in streamlining the company’s supplier guide and has extensive experience driving sustainability initiatives at numerous apparel firms. 
• Elodie Gilart, Senior Sustainability Manager at Marks & Spencer, currently leads the company’s raw materials and circularity strategy for clothing and home products.  
• Nadia Bilal, Managing Director of Spinning at Nishat Chunian, supports strategic raw material planning, market trend analysis and project management at the company, which is among the top-ranked employers in Pakistan’s textile sector for women’s empowerment.
• Vicente Sando, Executive Coordinator at FONPA, Mozambique’s National Forum of Cotton Farmers, has a wealth of experience in agricultural development and advocacy.

Better Cotton has also announced the re-election of Rajan Bhopal, International Project Manager (Supply Chain) at PAN UK, and Shahid Zia, Executive Director at the Lok Sanjh Foundation to its council.  

With these newly elected members come the departure of three members from the Council. Gerson Fajardo of Walmart; Pierre Chebab of Louis Dreyfus Company (LDC); and Kevin Quinlan, Independent, have completed their tenures and now left the council.

The Better Cotton Council, which is the subject of a biennial nomination and election process, comprises a select group of members which sit at the centre of the organisation and are responsible for its strategic direction. Council members represent retailers, brands, manufacturers, suppliers, producers, and civil society across the cotton industry.

• 300 exhibitors from all fashion sectors in clearly structured areas in four halls
• More than 30,000 visitors from over 100 countries are expected
• Set event: B2B meetings in speed dating mode - intensive networking support between fashion brands and buyers arranged by IFCO
• THE CORE once again inspires with collections by established and young designers
• IMA Trend Area with the theme ‘’Asencion SS/26’’ showcases innovations and trends reflecting the significance and influence of the current moment, perception of the now, uniqueness of cultural backgrounds, consideration of the reality revealed through new developments and their adaptation
• WGSN informs on the latest international fashion trends, fashion industry experts discuss recent innovations in the fashion on the occasion of IFCO Talk
• IFCO Shows inspire the fashion world with latest trends and designs

More than 30,000 visitors from over 100 countries are expected to attend the sixth edition of IFCO, Istanbul Fashion Connection with 300 exhibitors at Europe's largest fashion trade fair from 7 to 9 August 2024.

In 4 halls covering 30,000 sqm top designers and brands will present the latest fashion trends in womenswear, menswear, kidswear, denim, activewear and shoes in clearly divided product areas.

THE CORE, the exclusive designer area of the trade fair, has already creatively staged the Turkish design talents at previous editions of the fair. Over 20 designers will present their latest creations in hall 7, such as Arzu KAPROL, Meltem ÖZBEK, or Tuba ERGİN, who are represented internationally.

Market leaders and retail brands such as Naramaxx, B&G Store, Kayra, Jakamen, Giotelli, Armine, NCS, 7Camicie will use IFCO as a global platform to network with international industry leaders and expand their customer contacts, presenting their individual stand designs.

Programme
The co-operation with the renowned Fashion Designer's Association MTD for the IFCO Trend Area will be continued with this time's theme Ascension SS 26 creatively designed by IMA Istanbul Moda Akademisi. Through the power of the present moment and the conscious experience of the moment, the emphasis is placed on cultural identities. At the same time, the scrutinised reality that is revealed in the process of adapting to new developments is taken into account. The works created by the industry with this design language reflect this dynamic.

WGSN informs on the latest international fashion trends and developments for A/W 25/26. Next to this trend seminar fashion industry experts discuss recent innovations in digital art and fashion, new opportunities in fashion exports as well as the new face of Turkish fashion. A panel discussion is dedicated to the topic of denim and focuses on pioneering solutions for the new century in the denim industry.

The Lenzing Group is working with the non-profit organisation RTDS Group and 13 other partners from research and industry to promote the scaling of lyocell filaments as part of the CELLFIL project. Co-funded by the EU with EUR 6.9 million, the project aims to drive the reformation of the textile industry towards greater sustainability and a circular economy.

The Austrian organisation RTDS has launched the CELLFIL project with great vision. In close cooperation with Lenzing Group, which is at the technical helm of the project, CELLFIL aims to reform the textile industry. The centrepiece of the project is the sustainable and robust production of lyocell filaments. By optimising the entire fabric production process and its intermediate processing steps, the aim is to replace synthetic fibers with environmentally friendly lyocell filaments in recyclable end applications. This approach aims to develop and utilise alternative raw material sources for textiles. The realisation of these goals is crucial for scaling up lyocell filament production and promoting a circular economy that represents an environmentally friendly alternative to the currently dominant fossil-based synthetic filaments.

CELLFIL is part of the EU research and innovation program Horizon Europe and is supported by 15 partners from eight different countries. EUR 6.9 million from the European Union's Horizon Europe program has been made available for the implementation of this initiative. The European Commission has presented a visionary roadmap for the future of textiles, aiming for a circular economy in which all textiles on the EU market are durable, repairable and recyclable. This underlines Europe's commitment to sustainable innovation and a greener future in the textile sector.

Women play a decisive role in achieving social and economic improvements for entire communities, including those involved in cotton production. Nonetheless, female farmers continue to face systemic disadvantages. Cotton made in Africa (CmiA) is pursuing gender justice to redress this imbalance, and the results of a recent study reveal significant progress in this regard.

A recent study shows women taking leadership through Cotton made in Africa as lead farmers. In this position, they serve as role models; they offer other female farmers someone to turn to; and they establish co-operatives together with other women to increase both their autonomy and their financial independence by creating new sources of income.

A major factor in this success has been collaboration with African cotton companies in the cultivation regions. This involves regular verifications to assess whether the partners’ activities comply with the standard’s requirements. The verifications are structured around a large selection of indicators that address issues including whether gender-related training was completed or whether projects promoting gender justice were conducted. Over the past years, this approach has not only raised awareness of gender equality among village communities but also increasingly challenged or dissolved traditional norms among the partner companies’ management and staff, thereby resolving inequities and empowering women at the systemic level. The study revealed that respondents see Cotton made in Africa as playing a highly supportive role. Intensive communication through training, verifications, and discussions with other cotton companies has given partner companies a clear awareness of how important gender justice is. As a result, they have become significantly more active in this regard, thereby encouraging women to assume a stronger position in agriculture and the communities. This is reflected in the fact that over 80 percent of both male and female respondents in Mozambique disagreed with the statement that care work should only be done by women. At least 60 percent of female and male farmers surveyed apply the skills and knowledge acquired through the training, which expressly addresses gender-specific aspects. In addition, over 80 percent of surveyed women stated that they receive the same share of proceeds from cotton sales as the other members of their families.

CmiA’s gender study was based on the internationally recognised Women’s Empowerment in Agriculture Index, which aims to measure and improve the role of women in agriculture. In addition to the survey of over 500 farmers, 26 qualitative interviews and around 30 group discussions were conducted in cotton-growing areas of Mozambique (in south-eastern Africa) and Benin (in western Africa) in order to ensure a representative sample.

Cotton made in Africa shares the United Nations’ views on the significance of gender equality, as outlined in the Sustainable Development Goals (SDGs), especially SDG 5. In its own work as a sustainability standard, CmiA also follows international norms and frameworks, such as ILO conventions or Agenda 2030; at a higher level, CmiA promotes gender equality in the textile industry by participating in expert groups like the Partnership for Sustainable Textiles’ strategy committee for gender equality.

After a initial launch in 2022, global denim company Wrangler® launches the second installment of Wrangler Reborn™ – the latest collection to celebrate the upcycling of denim. The newest Wrangler Reborn™ sees the brand collaborate with BVH Services’ brand Beyond Retro, for the first time. BVH are one of the largest vintage retailers across Europe with a reputation for producing on-trend fashion without a hefty carbon footprint making them the perfect partner to give the collection a new dimension and even greater scale globally.

Purposefully crafted with circularity and sustainability in mind, the latest Wrangler Reborn™ Collection features a sustainable twist on some of its classic styles, including the Greensboro Straight Leg Jean, Reworked Short, Icon Jacket and Heritage Shirt that provide consumers with wardrobe staples they can wear for years to come while simultaneously diverting textile waste from landfills. To create the collection, Wrangler revived discarded denim and transformed it into apparel tough enough to stand the test of time that can be repurposed and re-loved, providing consumers the opportunity to buy better.

Wrangler’s commitment to durability and long-lasting quality products has helped to keep waste out of landfills since 1947. Wrangler Reborn™ enhances that commitment and is an additional step towards the brand’s WeCare Wrangler™ goals, crafted to create a better future through its commitment to sustainability.