From the Sector

On April 17, 2025, the 81st Annual General Meeting of Lenzing AG adopted the resolution to discharge the members of the Managing and Supervisory Boards acting in the 2024 financial year and set the remuneration of the Supervisory Board members for the 2025 financial year.

In addition, a revised remuneration policy was approved. In order to align the remuneration policy for the Managing Board even more closely with the interests of shareholders, the link to share price performance in performance-based remuneration, in particular, was further strengthened. The new remuneration policy of Lenzing AG is also linked to non-financial sustainability criteria (ESG) in addition to financial performance criteria.

KPMG Austria GmbH Wirtschaftsprüfungs- u. Steuerberatungsgesellschaft was appointed as the auditor for both the separate and the consolidated financial statements and also as the auditor of the sustainability reporting for the 2025 financial year.

Elections to the Supervisory Board
The Annual General Meeting also elected Patrick Lackenbucher and Leonardo Grimaldi as new members of the Supervisory Board of Lenzing AG until the end of the Annual General Meeting that adopts the resolution that discharges the Supervisory Board members acting in the 2029 financial year. The mandate of Stefan Fida was also extended until the end of the Annual General Meeting that adopts the resolution that discharges the Supervisory Board members acting in the 2029 financial year.

The elections to the Supervisory Board were due to the expiry of the terms of office of Stefan Fida and of Cord Prinzhorn, who is thereby stepping down from the Supervisory Board in order to concentrate in the future on both existing as well as new tasks within the B&C Group. Marcelo Feriozzi Bacci had already stepped down from the Supervisory Board at his own request on December 6, 2024.

As a consequence, the Supervisory Board of Lenzing AG continues to consist of ten members elected by the Annual General Meeting: Carlos Aníbal de Almeida Junior, Cornelius Baur, Helmut Bernkopf, Stefan Fida, Markus Fürst, Franz Gasselsberger, Leonardo Grimaldi, Patrick Lackenbucher, Gerhard Schwartz and Astrid Skala-Kuhmann. Stefan Ertl, Stephan Gruber, Bonita Haag, Helmut Kirchmair and Johann Schernberger were delegated to the Supervisory Board by the Works Council.

At the constituent meeting of the Supervisory Board following the Annual General Meeting, Patrick Lackenbucher was elected Chairman, Carlos de Almeida was elected First Deputy Chairman and Stefan Fida was elected Second Deputy Chairman of the Supervisory Board.

The Lenzing Group, a leading provider of regenerated cellulose fibers for the textile and nonwoven industries, announces personnel changes in the company’s Managing Board. The Supervisory Board of Lenzing AG and Dr. Walter Bickel, Chief Transformation Officer of Lenzing AG, have mutually agreed to end the temporary mandate of Mr. Bickel and that Mr. Bickel will step down from his operational activities at the end of March 2025.

Mr. Bickel was appointed to the Managing Board of Lenzing AG as of April 15, 2024 to strengthen the Lenzing Managing Board and to be responsible for the further development and implementation of the performance program. Under his leadership, a significant overachievement of the planned contributions from the performance program could be realized. The basis for future significant improvement steps is established, and the program has been structured in a way that it can now be continued by Lenzing AG seamlessly.

The Lenzing Group’s holistic performance program pursues the overarching goal of significantly increasing long-term resilience to crises and greater agility in order to respond to market changes. The program initiatives are primarily aimed at improving EBITDA and generating free cash flow through increased profitability and sustainable cost excellence. Numerous activities are being undertaken to strengthen sales, such as acquiring new customers for the most important fiber types and expanding into new markets, which are already having a positive impact on sales. In addition, the Managing Board expects significant cost savings, of which more than EUR 130 m could already be realized in 2024.

In addition to the positive effects in the 2024 financial year on revenue development (+5.7 % increase in revenue compared to 2023) and earnings development (+30.4 % increase in EBITDA compared to 2023), the performance program also improved free cash flow to EUR 167.0 mn (compared to minus EUR 122.8 mn in 2023). Lenzing AG will continue to consistently implement the ongoing performance program with the aim of achieving annualized cost savings of over EUR 180 mn from the 2025 financial year onwards.

The Lenzing Group, a leading supplier of regenerated cellulose fibers for the textile and nonwovens industries, will be presenting its sustainable innovations at Hannover Messe 2025, the world’s leading trade fair for the industry, from March 31 to April 4. As a co-exhibitor at the EU Commission’s stand, the leading integrated fiber group is representing a European flagship company in the clean industry.

Lenzing is currently the only producer of regenerated cellulosic fibers with a verified, science-based net-zero target. Lenzing is also proactively developing and promoting innovation to provide economically viable and scalable solutions to the global textile waste problem and accelerate the transition to a circular economy model.

A current example of Lenzing’s pioneering work in this field is the CELLFIL project, which was launched in 2024 and is co-funded by the EU with EUR 6.9 mn. As part of this project, Lenzing is working with the non-profit organization RTDS Group and 13 other partners from research and industry to promote the scaling of lyocell filaments.

Since 2021, Lenzing has been working with Swedish pulp producer Södra to jointly develop new processes for recycling used textiles on an industrial scale. The project was supported in 2023 as part of the LIFE 2022 program with a grant of EUR 10 mn from the EU.

Another example of Lenzing’s innovative strength is the project “Glacial Threads: From Forests to Future Textiles”, which combines glacier protection and textile recycling and will be presented at HANNOVER MESSE 2025.

The Lenzing Group, a provider of regenerated cellulose fibers for the textile and nonwoven industries, continued to improve its business performance in 2024 despite the expected slow market recovery. While Lenzing was able to significantly increase its sales volumes, the price level remained below that of the previous year. Logistics costs have risen significantly, and raw material and energy costs also remained high.

Revenue grew by 5.7 percent year-on-year to EUR 2.66 bn in 2024, mainly reflecting a higher level of revenue generated from fibers (+10 percent). The positive effects of the holistic performance program were the main factor driving the operating earnings trend. Earnings before interest, tax, depreciation and amortization (EBITDA) rose by 30.4 percent year-on-year to EUR 395.4 mn in 2024. The EBITDA margin increased from 12.0 percent to 14.8 percent. The operating result (EBIT) amounted to EUR 88.5 mn (compared with minus EUR 476.4 mn in 2023) and the EBIT margin stood at 3.3 percent (compared with minus 18.9 percent in 2023). The result before tax (EBT) amounted to minus EUR 42.0 mn (compared with minus EUR 585.6 mn in 2023).

Outlook
The IMF recently slightly upgraded its growth forecast for 2025 to 3.3 percent, but emphasizes the continued high extent of variation between regions as well as the high level of uncertainty. The latter is mainly due to geopolitical tensions, increasing protectionist tendencies, and a potential return of inflation.

In times of uncertainty, consumers are remaining cautious and thrifty, which is exerting a negative impact on consumer sentiment and on their propensity to spend.

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

In the trend-setting market for cotton, analysts anticipate a slight increase of stock levels to around 18.7 mn tonnes in the current 2024/2025 harvest season, following a reduction of 0.9 mn tonnes in the previous season, according to preliminary estimates.
Earnings visibility remains limited overall.

Lenzing is still ahead of schedule with the implementation of the performance program. The company expects that the measures will also contribute to further earnings improvement in the coming quarters.

Taking the aforementioned factors into consideration, the Lenzing Group expects EBITDA to be higher in 2025 than in the previous year.
In structural terms, Lenzing continues to expect growth in demand for environmentally responsible fibers for the textile and apparel industry, as well as for the hygiene and medical sectors. As a consequence, Lenzing is very well positioned with its strategy and is driving ahead with not only profitable growth in specialty fibers but also the further expansion of its market leadership in the sustainability area.

The Lenzing Group, a leading supplier of regenerated cellulose fibers for the textile and nonwovens industries, welcomes the European Commission’s Clean Industrial Deal, which aims to pave the way for a sustainable, climate-neutral and competitive industry. Commission President Ursula von der Leyen discussed the initiative on Wednesday, February 26, 2025, together with 400 business leaders, including the CEO of the Lenzing Group, Rohit Aggarwal, in Antwerp (Belgium). The industry is calling on EU heads of state and government to take urgent measures in all EU member states without delay ahead of the upcoming European Council meeting in March.

“International trade tensions, volatile energy markets, and the need to decarbonise industries demand urgent collective action. We must continue to support Europe’s green leadership and ensure that those investing in sustainability are incentivised. We must act now, work together and translate ambition into tangible results”, emphasizes Rohit Aggarwal, CEO of Lenzing Group. “The Clean Industrial Deal is an important initiative for Europe’s industrial and sustainable future. It will strengthen Europe’s net-zero industry, expand green technology manufacturing, and enhance industrial competitiveness.”

One important aspect is access to affordable and clean energy, which is crucial for the global position and competitiveness of the industry.

“We appreciate the Commission President taking the time to join us today in Antwerp to present the Clean Industrial Deal. Nine out of ten calls of the Antwerp Declaration have been addressed. We need to transform Europe’s ambition ‘to be’, into a determination ‘to do’. Every day, Europe is falling behind its goals, and is losing quality jobs for our current and future generations of workers. In the turbulent times we are in we need bold action from the European Leadership,” said Ilham Kadri, President of the European Chemical Industry Council, Cefic.

Europe’s industries are facing historical challenges: declining demand, stalled investments, reduced capacity, and EU gas prices at 4 to 5 times higher than its competitors. Between 2023 and 2024, Europe’s manufacturing output – a sector employing over 31 million people – dropped another 2.6 percent. While for the chemicals industry – the industry of industries – Cefic’s recent study emphasised the severity, with over 11 million tons of capacity announced to be closed between 2023 and 2024, affecting 21 major sites.

To overcome these challenges, back in February 2024, 73 business leaders presented the Antwerp Declaration to Commission President, Ursula von der Leyen and former Belgian Prime Minister Alexander De Croo. The Antwerp Declaration lays out 10 concrete actions to restore the business case for investments, to implement Europe’s sustainability ambitions and safeguard quality jobs in Europe. It is now signed by over 1,300 signatories.

“Reading the Clean Industrial Deal, we need the Commission to focus, prioritise the three key actions that improve our situation already this year and put all power, boldness and bravery in the European Commission behind these. And give us a realistic planning for the remaining actions. When we say actions, we mean action, not strategies, policies or plans. Leave no stone unturned and break all taboos. We need the situation to change.” Marco Mensink, Cefic Director General.

“Cefic calls on all new EU initiatives to be evaluated against the following criteria: Do they keep Europe safe and independent, reduce energy prices, ease the administrative burden on companies, attract investments to Europe, create markets for sustainable products, and safeguard quality jobs in Europe? If the answer to any of these questions is no, EU policymakers should reconsider and revise the proposal accordingly.”

The Lenzing Group, a supplier of regenerated cellulose fibers for the textile and nonwovens industries, acquired of a minority share in TreeToTextile AB, joining the existing shareholders H&M Group, Inter IKEA Group, Stora Enso, and LSCS Invest. The group of owners is united by the strong belief that sustainably produced fibers will have the power to change the textile industry to the better.

TreeToTextile was established as a joint venture in 2014 with the objective of developing a more sustainable process for cellulosic fiber production. The company has operated pilot lines since 2015 and invested in a demonstration plant in 2021. The next step in the company's evolution will be to scale up the production and make its fibers available on the market.

Lenzing Group has produced sustainable regenerated cellulosic fibers and dissolving wood pulp for over 85 years. “We are excited about TreeToTextile’s award-winning technology and production process, which further reduces environmental impact, promotes the transition to a more sustainable future and is fully in line with our corporate strategy,” says Rohit Aggarwal, CEO of the Lenzing Group.

Dr. Roxana Barbieru, CEO of TreeToTextile, adds: “Now with the additional expertise and sustainability leadership of our new shareholder Lenzing Group, our speed to market will increase significantly, to reach our ambitious goals and become an important player in the textile industry.”

Im Rahmen ihrer Kooperation produzieren Naïf und VEOCEL™ ökologisch verantwortungsvolle Feuchttücher für Babys und Kinder. Die Feuchttücher werden aus holzbasierten VEOCEL™ Fasern hergestellt, enthalten pflegende und natürliche Inhaltsstoffe wie zum Beispiel Aloe Vera und sind ohne Zusatz von Alkohol oder Parfum.

Wenn es um Feuchttücher geht, beinhaltet ein Großteil der Produkte auf Erdöl basierte, synthetische Fasern. Naïf Feuchttücher hingegen sind plastikfrei und bestehen aus cellulosischen VEOCEL™ Fasern, die aus dem natürlichen Rohstoff Holz gewonnen werden. Das dabei verwendete Holz ist zertifiziert und stammt aus nachhaltig bewirtschafteten Wäldern. Die Herstellung der VEOCEL™ Fasern erfolgt in einem umweltschonenden Produktionsprozess mit geringen ökologischen Auswirkungen – dies gelingt dank Emissionsrückgewinnungs- und -aufbereitungssystemen sowie kontinuierlichen Bemühungen zur Reduzierung der Kohlenstoffemissionen.

Das Unternehmen Naïf wurde mit dem Ziel gegründet, Pflegeprodukte zu entwickeln, die der Haut von Babys und Kindern das geben, was sie braucht: Inhaltsstoffe bester Qualität, ohne Chemie und unnötige Zusatzstoffe. Mit dem Einsatz von VEOCEL™ Fasern will Naïf auch einen Wandel in der Industrie anstoßen und beweisen, dass es umweltfreundliche Wege gibt, Hautpflegeprodukte für Kinder herzustellen.

Lenzing Group announces the appointment of Kit Ping Au-Yeung as the Executive Vice President of Commercial Textiles with immediate effect. This strategic leadership appointment highlights Lenzing’s commitment to strengthen its integral leadership roles and fuel the growth of its core textile businesses. Kit Ping succeeds Florian Heubrandner, who will take on a new role as Executive Vice President of Filament to reinforce the expansion of Lenzing’s global filament business.

In her new role, Kit Ping will be leading the expansion strategy and development of Lenzing’s textiles business, which comprises of fiber offerings under the flagship TENCEL™ and LENZING™ ECOVERO™ brands. With decades of experience working with partners across the textile value chain, Kit Ping will continue to foster the development of Lenzing’s textile business through driving innovative fiber and application solutions for customers, and ultimately bring benefits to consumers. Prior to joining Lenzing, Kit Ping held several regional and global commercial and operational leadership roles at Coats Group, as well as more recently at Amann Group. Her experience will add value to Lenzing’s core business, affirming Lenzing’s dedication to driving a positive impact across the industry ecosystem.

From 1 July 2024 onward, Florian Heubrandner will focus on driving the strategy and expansion of Lenzing’s filament business with his established expertise in the value chain. He will work alongside Lenzing’s Research and Development and Engineering teams to establish filament as a separate business with a strong focus on innovation and growth.

Die Lenzing Gruppe ist eine Partnerschaft mit dem Technologie-Start-up Exponent Envirotech eingegangen, um die wasserlose Färbetechnologie ECOHUES für holzbasierte Cellulosefasern einzuführen. Diese Methode stellt eine mögliche Alternative zu herkömmlichen wasserbasierten Färbemethoden dar und eignet sich sowohl für Baumwoll- als auch für Leinenfasern. Im Rahmen der Zusammenarbeit mit Lenzing wird ECOHUES erstmals bei Cellulosefasern eingesetzt, nämlich bei Lyocell- und Modalfasern der Marke TENCEL sowie bei den Viscosefasern der Marke LENZINGECOVERO, die mit dem EU-Ecolabel für herausragende Umweltleistung zertifiziert sind. Dritter im Bunde ist der in Hongkong ansässige innovative Strickwarenhersteller Cobalt Fashion. Zusammen wollen die drei Unternehmen diesen wissenschaftlichen Durchbruch nun im Mainstream-Textilmarkt etablieren.

Bei traditionellen Färbeverfahren werden pro Tonne Garn 120 Tonnen Wasser benötigt. Diese Verfahren umfassen die Vorbehandlung, das wasserbasierte Färben, das anschließende Waschen und die Fixierung und Nachbehandlung, wobei zahlreiche Chemikalien zum Einsatz kommen. Die ECOHUES-Technologie ersetzt das Wasser im Färbeprozess durch ein nichtwässriges Lösungsmittel, das zu 99,8 Prozent wiederverwendbar ist. Auch die Vor- und Nachbehandlungsphasen werden optimiert, da die neue Technologie die Seifenwäsche nach dem Färben nahezu überflüssig macht. Damit verringert sich der Gesamtwasserverbrauch im Vergleich zu herkömmlichen Färbemethoden um 95 Prozent. Das vereinfachte Verfahren senkt nicht nur den Wasser- und Energieverbrauch, sondern fördert auch die Kosteneffizienz und Produktionseffizienz, in dem es den üblicherweise 12 Stunden dauernden Färbeprozess auf 6 bis 8 Stunden reduziert.

Während sich die ECOHUES -Technologie in nahezu allen Segmenten anwenden lässt, unter anderem bei Unterwäsche, Konfektionsware, Activewear und Schuhen, in denen Cellulosefasern häufig zum Einsatz kommen, wurde im Rahmen dieser Zusammenarbeit entschieden, die Vorteile der neuen Technologie anhand von Strickwaren deutlich zu machen. Die Garne, die in der Strickwarenkollektion von Cobalt Fashion verwendet wurden, wurden aus Lenzing-Fasern hergestellt, die mit der ECOHUES -Technologie gefärbt wurden.

On Thursday, April 18, 2024, the 80th Annual General Meeting of Lenzing AG discharged the members of the Managing Board and the Supervisory Board for the 2023 financial year and set the remuneration of the members of the Supervisory Board for the 2024 financial year in advance.

Dr. Markus Fürst retired from the Supervisory Board at his own request with effect from the end of the General Meeting. Dr. Markus Fürst has been a member of the Supervisory Board and various committees of Lenzing AG since 2021.

The General Meeting elected Dr. Cornelius Baur as a new member of the Supervisory Board of Lenzing AG until the end of the General Meeting that decides on the discharge for the 2028 financial year. In addition, Melody Harris-Jensbach’s mandate was extended until the Annual General Meeting that decides on the 2028 financial year.

The Supervisory Board of Lenzing AG continues to consist of ten members elected by the Annual General Meeting: Dr. Cornelius Baur, Mag. Helmut Bernkopf, Dr. Christian Bruch, Dr. Stefan Fida, Dr. Franz Gasselsberger, Melody Harris-Jensbach, Cord Prinzhorn, MBA, Mag. Gerhard Schwartz, Dr. Astrid Skala-Kuhmann and Nicole van der Elst Desai. DI Stefan Ertl, Stephan Gruber, Bonita Haag, Helmut Kirchmair and Johann Schernberger were delegated to the Supervisory Board by the works council.

In the constitutive meeting of the Supervisory Board following the Annual General Meeting, Cord Prinzhorn, MBA, was elected Chairman and Dr. Stefan Fida was re-elected as Deputy Chairman of the Supervisory Board.

KPMG Austria GmbH Wirtschaftsprüfungs- u. Steuerberatungsgesellschaft was appointed as the auditor for the annual financial statements and the consolidated financial statements for the 2024 financial year.