From the Sector

• Revenue up 11 percent to EUR 1,149.1 mn
• EBITDA increase of 38.8 percent to EUR 270.7 mn
• Detailed planning for new production plant for TENCEL® fibers in Thailand in Progress
• New sales offices opened in Turkey and Korea
• New EcoVeroTM branded viscose fibers with very favorable ecological footprint launched

The Lenzing Group generated new record highs in the first half of the 2017 financial year for both revenue and earnings. The key underlying factors were good capacity utilization, higher selling prices and an attractive product mix. Lenzing will continue to focus on the disciplined implementation of the Group strategy sCore TEN, in order to be even closer to the customer and to further expand the offering of specialty fibers.

Consolidated revenue increased by 11 percent from the first half of the previous financial year to EUR 1,149.1 mn. Consolidated earnings before interest, tax, depreciation and amortization (EBITDA) were up 38.8 percent to EUR 270.7 mn, corresponding to an EBITDA margin of 23.6 percent in comparison to 18.9 percent in the prior-year period. Earnings before interest and tax (EBIT) increased by 57.4 percent to EUR 204.2 mn, resulting in a higher EBIT margin of 17.8 percent (H1 2016: 12.5 percent). The profit for the period improved by 58.9 percent to EUR 150.3 mn, and earnings per share climbed 59 percent to EUR 5.55 per share.

“The first half-year developed very well for the Lenzing Group, and we are pleased with the best half-year period in the company’s history. We will continue our disciplined implementation of the sCore TEN strategy. The expansion of new state-of-the-art production capacities for our specialty fibers is proceeding well and will support our customers in their own expansion efforts for products made of our botanic fibers. The decision to set up a subsidiary and acquire a respective landplot in Thailand is the next step in the implementation of this strategy. On the innovation side we are proud that after the introduction of RefibraTM branded lyocell fibers, we launched now EcoVeroTM. This is a particularly high-performance fiber featuring a very favorable ecological footprint and sets the new benchmark for the entire industry – from fiber to garment”, states Stefan Doboczky, Chief Executive Officer of the Lenzing Group. “Assuming that fiber market conditions remain at current levels, we expect a substantial earnings improvement in 2017 compared to 2016.”

Lectra has developed partnerships with over 850 fashion schools across the world, providing them with solutions and expertise to help the teachers prepare students with the skills they require for the workplace. Working with leading education partners, Lectra organises regular student competitions in association with customers. The latest competition with Istituto Secoli, renowned for its pattern-making savoir-faire, and organized with Armani, is a clear example of industry and education working hand-in-hand to nurture young fashion designers.
Students at Istituto Secoli developed their collections using Lectra’s Modaris® and Diamino® solutions to create their patterns, prototypes and markers. In addition, students from the master’s program in menswear cut their creations with Vector®, Lectra’s state-of-the-art fabric cutting solution.

Thanks to the trusted relationship that Lectra has with its customer G.A. Operations of the Giorgio Armani group, one of the winning students, graduating in menswear, has the opportunity to take up an internship in the collection development department. "We were very pleased with Lectra's initiative and were delighted to offer educational internships at G.A. Operations. We chose the winning student for his creative skills and for his training on Modaris and Diamino. This gives us the important advantage of bringing somebody with proven technical skills into our team," stated Giorgio Ferremi, industrial director G.A. Operations at Trento.