Although the IMF has upgraded its growth forecast for 2024 from 2.9 percent to 3.1 percent, a number of risks for the global economy continue to exist: potential geopolitical shocks, persistently higher inflation and higher key interest rates, as well as market risks emanating from the Chinese real estate market are currently considered to be the most relevant.

Many consumers are continuing to suffer from general inflation and diminishing incomes in real terms, which is having a negative impact on consumer sentiment. A recovery in the consumer clothing market, which is important for Lenzing, will also depend on a further normalization of stock levels.

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

In the trend-setting market for cotton, the current 2023/2024 crop season is signaling a further 0.8 mn tonnes of stock build-up, according to preliminary estimates, following 1.3 mn tonnes of stock build-up in the previous season.

Earnings visibility remains limited overall.

Lenzing is currently ahead of schedule with the implementation of its performance program focused on positive free cash flow, strengthened revenue and margin growth, as well as sustainable cost excellence. The overarching goal is to position Lenzing on an even stronger foundation, and to further enhance its crisis resilience.

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 “Better Growth” strategy and plans to continue driving growth with specialty fibers as well as its sustainability goals, including the transformation from a linear to a circular economy model.

Taking the aforementioned factors into account, the Lenzing Group expects EBITDA for the 2024 financial year to be higher than in the previous year.

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