From the Sector

• EBITDA of around EUR 300 million expected for 2023
• Non-cash impairment losses of up to EUR 480 million
• Implementation of the performance program fully on track

The annual valuation of assets in accordance with IFRS for the entire Lenzing Group both nationally in Austria and internationally, has resulted in a projected asset impairment of up to EUR 480 million for the 2023 financial year.¹ The reasons for the impairment requirements are, on the one hand, continued uncertainties in the economic environment and, on the other hand, still increased raw material and energy costs as well as a higher interest rate environment.

The impairment losses are non-cash effective and have no impact on the full-year EBITDA for 2023, but do affect EBIT for the 2023 financial year. The Managing Board is specifying the previous earnings forecast for the 2023 financial year (EBITDA: EUR 270 – 330 million) and expects an EBITDA of around EUR 300 million.

Stephan Sielaff, Chief Executive Officer of the Lenzing Group: “In the third quarter of 2023, we responded to the persistently difficult market environment and launched a comprehensive performance program, which we have been consistently implementing since then with a focus on positive free cash flow and stronger sales and margin growth. We can therefore confirm our earnings forecast with an EBITDA of around EUR 300 million. The valuation adjustment in accordance with IFRS does not change the strategic orientation of the Lenzing Group.”

Nico Reiner, Chief Financial Officer, adds: “The implementation of the performance program is going according to plan. In the future, cost measures alone are expected to contribute more than EUR 100 million to earnings annually, of which more than EUR 50 million will already be effective for the 2024 financial year. We are on target, particularly in terms of strengthening free cash flow, and we also achieved positive free cash flow in the fourth quarter. The revaluation of assets is now consistent and the right step for the future direction.”

The 2023 annual results will be presented on March 15, 2024.
 

¹ Subject to potential changes resulting from the ongoing financial audit

• Sustainability and security combined:
• RF security labels from Checkpoint Systems can be fully recycled as part of kerbside paper-based recycling collections

To ensure that its retail customers are not negatively affecting the recyclability of product packaging by attaching security labels,Checkpoint Systems partnered with PTS – an organisation with over 70 years’experience researching the use of fibre-based solutions – to conduct a series oftechnical tests on its range of labels. The technical report concluded that consumers can safely dispose of a Checkpoint security label in a household recycling bin, without having to separate the label from the packaging, knowing that the entire pack will be recycled.

The Germany-based research consultancy PTS tested a range of Checkpoint labels. PTS analysed the labels, which were different sizes and materials, to ensure that following the standard kerbside recycling process, the recycled, fibre-based material would be of acceptable quality. Each label was applied to a piece of cartonboard to simulate a real-world scenario and the results show that all are classified as being recyclable in accordance with current regulations. All labels – including the 410 RF, 2928 RF and 4210 RF labels – achieved an excellent overall recyclability rate of over 94%.

Sustainability is essential

With brands making strong commitments to sustainability – including investing in more environmentally friendly forms of packaging like cartonboard – and consumers increasingly demonstrating their preferences for sustainable packaging it is pivotal that anything applied to an item – at any point along the supply chain or in-store – does not affect the recyclability of its packaging.

Security labels play a vital role in ensuring products remain available to purchase. Retailers have been using a diverse range of labels to protect their merchandise, working with suppliers to ‘tag’ items at source or relying on store associates to apply labels in-store. As one of the largest suppliers of RF-based Electronic Article Surveillance (EAS) labels globally, Checkpoint’s labels are applied to millions of products, which are packaged in different materials. Typically, when recycled, packaging labels tend to end up in a combination of different rubbish and recycling streams, depending on the packaging material and the consumer commitment to recycling.

Until today, the recyclability of these labels has been relatively unknown. It means that retailers and consumers could inadvertently be contaminating the paper-based packaging recycling stream with millions of security labels – still attached to packaging which could have otherwise been recycled up to 25 times.

“Security labels play an important role in helping retailers protect their profits, but it is vital they don’t stop packaging from being recycled. We are delighted to have achieved this accreditation from PTS that shows our labels can be recycled through the existing kerbside collections. It means that brands and retailers can be assured they are not negatively affecting a country’s recycling rate, while also knowing their customers can conveniently dispose of the entire pack, packaging material and label, in the same household recycling bin. Our labels passed all of PTS’ stringent tests meaning they have little to no impact on the recyclability of a piece of cartonboard packaging." 

• At Kingpins Show Amsterdam (24-25 October) the new “Committed Accessories” dedicated to denim take centre stage.

For the appointment with the exhibition dedicated to denim Metalbottoni focuses on its new range of increasingly green accessories which have captured the attention of the northern European brands most attentive to sustainability in the world of jeans and elsewhere. A range of proposals which, in recent months, has progressed remarkably, following the rules established by the corporate responsibility protocol called NO IMPACT.

This is a responsible approach underlined by the promise “Committed Accessories”, but also a strategic choice with a view to approaching those markets which so far have appeared to be most keen on the subject, for example northern Europe, Benelux and the United States, California in particular. This means that Metalbottoni is acting with increasing assertiveness on those scenarios where it has been present for a long time, in order to increase the segments depth, intercepting new ones, thanks to its wide-ranging eco-compatible proposal.

NO IMPACT: “Committed Accessories” expanded

It is the constant search for sustainable innovation that reveals the extent of the progress made over the past few months by Metalbottoni. For the Kingpins Show exhibition, there are many novelties in store from the company, extending its range in terms of sustainability. Firstly, there is the new MONSTER line eco-processing, special for pure denim, which – apart from metal – includes new material solutions developed through high-profile collaborations.

Also the LEATHER ACCESSORIES line is extending its range of sustainable materials. The line of tags and rear waistband labels is enhanced through interpretations based on two new eco-friendly materials: recycled jacron and cork. For denim designed to be 100% green, also in accessories. Sustainable proposals are increasingly integrated throughout the Metalbottoni range, for example the new glossy and satin finishing developed for the line LABORA on exclusive metal accessories.

Partnerships with brands from northern Europe: Bik Bok and Kings of Indigo

One of the most important collaboration in sustainable fashion is the one with the Norwegian brand Bik Bok. The brand that was founded in 1973 dedicated to young women, today offer accessible trend driven fashion through a network of over 200 single-brand stores in Norway, Sweden, Finland and Austria. The brand has since 2017 chosen to use only BCI (Better Cotton Initiative) certified cotton for their in house premium denim brand Never Denim. For Never Denim Metalbottoni has realized a series of jeans buttons and personalized rivets, all entirely produced according to the NO IMPACT protocol; which means recycled raw materials, no use of chemical agents, through processing and machinery that minimize the use of water and electricity, resulting 100% from photovoltaic panels. All these features are part of a capsule developed for the new AW 2018 collection for Never Denim entirely made with Fair Trade certified cotton. Thanks to this project, the No Impact becomes an integral part of a collection that is aimed at a very large, young and aware public.

Another important brand which has chosen the new NO IMPACT metal accessories is Kings Of Indigo, the Dutch denim mill which is presenting top-quality jeans, inspired by traditional American style, combined with Japanese attention to detail, which today has as many 250 authorised dealers in 12 countries, with a very strong focus on northern Europe.

More and more sportswear for the new Monster SS 2020 collection

The great Metalbottoni classic dedicated to denim confirms the trend of strongly merging with the world of sportswear. The MONSTER line introduces the style developments of the SS 2020 season, with the range being more and more influenced by technical and sports interpretations, alongside sustainable production processes based on the NO IMPACT protocol. The new MONSTER proposals include items made of non-metal material, using sustainable processes, of natural origin and 100% biodegradable; these accessories are similar in appearance to traditional polyester, interpreted in a responsible way, developed through a series of special and unique effects. Also the button, rivet and small plate range has been restyled, having always been the core of the MONSTER line. Today the number of solutions available increases  hanks to new vintage finishing, developed on metal accessories, which are also totally green. “The denim world is moving in a clear direction: that of sustainability.” says Maria Teresa Ricciardo, Creative Director at Metalbottoni, “This is true in particular for some markets, which are strategic for us, and where we are proving increasingly successful, thanks to constant product and process research from a green  perspective, which Metalbottoni today is able to offer within the framework of the NO IMPACT pathway which we have been pursuing for a long time”.

METALBOTTONI has drawn up its new strategy for the year 2018, based on a targeted trade fair
schedule and on many product innovations. These innovations are part of a marketing approach
which is more and more branding ingredient-oriented, in order to highlight the added value
of the accessory as a component characterising and enhancing product recognition, as well as
strengthening its consulting activities for customers, thus offering true excellence in service.
There are three main elements pointing to a positive moment for METALBOTTONI: its recent
outstanding performance in double-digit on foreign markets (most notably in the northern
European region), the consolidation of consulting and support services aimed at redesigning the
perspective on the world of accessories, and its product range extension. The fourth pillar, actually
a fixture at METALBOTTONI, is sustainable innovation with the protocol called NO IMPACT which has
made a huge step forward thanks to new technologies which halved water consumption compared
to previous performances of the system, obtaining also better results in a shorter processing time,
saving electricity as well.

An ongoing pathway
There are many novelties to be displayed by METALBOTTONI at three of the most important events
in the industry early in the new year. The company from Bergamo will be present at Munich Fabric
Start (30 January – 1 February), then at Milano Unica (6-8 February), and finally in Paris for the new
edition of Première Vision Accessories (13-15 February).