Outlook
The IMF1 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, analysts2 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.
1 Source: IMF, World Economic Outlook, January 2025
2 Source: ICAC