Textile Technology section
Lenzing: new guidance for FY 2020 as Covid-19 impacts sales
As a result of the global Covid-19 crisis, the producer of cellulosic fibers, Lenzing AG, Lenzing/Austria, suspended its guidance for 2020. Whilst it remains difficult to give a precise outlook for 2020, Lenzing assumes from today’s perspective that the revenue generation and operating performance of the remaining 2 quarters will exceed those of the 2nd quarter (Q2).
In the first half (H1) of 2020, the company faced a historically difficult market environment with increased pressure on prices and volumes resulting from the corona crisis. Sales declined by 25.6% from €1.09 billion to €810.2 million in the H1/2020. In addition to price effects, the company also felt the decline in demand for textile fibers in all regions. The slightly higher demand for fibers in the medical and hygiene segments could not offset the losses.
EBITDA fell by 46.6% to €96.7 million in H1/2020. The EBITDA margin decreased from 16.6% to 11.9%. Net profit for the period amounted to €1.5 million (H1/2019: €78.8 million).
The 76th Annual General Meeting of Lenzing AG resolved on June 18, 2020, not to distribute a dividend for the 2019 financial year.
RadiciGroup: positive results for 2019
The manufacturer of synthetic fibers and yarns, RadiciGroup, Grandino/Italy, closed financial year 2019 with consolidated sales revenue of €1,092 million (2018: €1,211 million). The group with 3,100 employees in 16 countries engages in the chemicals, engineering polymers and synthetic fibers businesses.
Crucial to maintaining the Group’s competitiveness and development in 2019 was the decision to continue allocating sizeable investments – totaling over €45 million – to the constant technological upgrading of plants and equipment, as well as to business sustainability. In particular, €7.6 million was earmarked for implementing Best Available Techniques, enhancing energy efficiency, emission abatement and R&D activities aimed at adding to low environmental impact processes and products.
At the beginning of 2020, the purchase of shares in Radici Plastics France SA, St. Priest/France, was completed, thus giving RadiciGroup a majority interest in the French company engaged in the sale of engineering polymers. The group also acquired Zeta Polimeri Srl, Buronzo/Italy, a company specializing in the recovery of synthetic fibers and thermoplastics.
Bogner: continued growth in 2019/20 financial year
The manufacturer of apparel Willy Bogner GmbH & Co. KGaA, Munich/Germany, continued its growth course of the past years in the 2019/2020 financial year. BOGNER generated €163 million in sales. Earnings before taxes (EBT) amounted to €2.6 million following €0.3 million in the last comparable fiscal year 2017/18.
Bogner’s business was very solid on entering the corona virus crisis. The company responded swiftly and flexibly to the lockdown, and took resolute countermeasures. It is also about to conclude a financing package. In addition to a syndicated loan, it will include state subsidies from LfA Förderbank Bayern to cover the repercussions of the corona virus pandemic.
Even before the current crisis, Bogner had worked with the management consultancy EY to develop a performance program designed to reduce complexity and make the company faster, more flexible, and more profitable in the long-term. The program involves a gradual reduction in staff. A total of around 150 jobs will be reduced over a period of 2 years. This will particularly affect the administration in Munich and the company’s own logistics in Heimstetten/Germany. The logistics will be outsourced to a service provider.