The Business Development in the Lenzing Group

Thanks to its strategic focus on specialty fibers and a largely positive market environment, the Lenzing Group recorded a significant year-on-year improvement in revenue and earnings trends in 2021. Growing optimism in the textile and apparel industry as a consequence of the progress made with vaccinations and the continuing recovery in the retail sector ensured a significant rise in demand and prices on the global fiber market, particularly at the beginning of the year under review.

Revenue rose by 34.4 percent to EUR 2.19 bn in 2021, reflecting both higher sales volumes as well as higher fiber prices. The focus on wood-based specialty fibers, such as those of the TENCEL™, LENZING™ ECOVERO™ and VEOCEL™ brands, also exerted a positive impact on revenue growth. These positive price and mix effects more than offset negative currency effects.

The earnings trend mainly reflects Lenzing’s position within the current market environment. A continued focus on measures to improve structural earnings in all regions reinforced this positive effect. Significant increases in energy, raw material and logistics costs were recorded throughout the reporting year. Earnings before interest, tax, depreciation and amortization (EBITDA) almost doubled year-on-year to EUR 362.9 mn in 2021 (compared with EUR 192.3 mn in 2020). The EBITDA margin rose from 11.8 percent to 16.5 percent. Operating profit (EBIT) amounted to EUR 200.6 mn (compared to EUR 33.9 mn in 2020). The EBIT margin rose accordingly from 2.1 percent to 9.1 percent. The financial result of EUR minus 17.7 mn includes the full write-off of the interest in Hygiene Austria LP GmbH as well as a loan to this same company. Earnings before tax (EBT) increased to EUR 182.9 mn compared with EUR 22.3 mn in 2020). Net profit for the year amounted to EUR 127.7 mn compared with EUR minus 10.6 mn in 2020) and earnings per share stood at EUR 4.16 (compared with EUR 0.24 in 2020).

The income tax expense of EUR 55.2 mn (compared with EUR 32.8 mn in 2020) follows the earnings trend and reflects currency effects and the valuation allowance applied to individual Group companies’ tax assets.

Details on revenue and earnings trends in the year under review are as follows:

Condensed consolidated income statement1
EUR mn














34.4 %

Cost of sales




22.1 %

Gross profit




103.8 %






Other operating income




31.9 %

Selling expenses




49.1 %

Administrative expenses




33.2 %

Research and development expenses




48.3 %

Other operating expenses









492.5 %






Financial result




52.4 %





722.1 %






Income tax expense




68.1 %

Net profit/loss for the year






Since the beginning of the 2021 financial year, the Lenzing Group has reported its consolidated income statement by applying the cost of sales method. The previous presentation applied the nature of expense method. The complete consolidated income statement is presented in the consolidated financial statements.

Higher level of investment activities

Gross cash flow almost tripled to EUR 372 mn in 2021 (compared to EUR 126.8 mn in 2020), which mainly reflects the earnings trend. Cash flow from operating activities amounted to EUR 394 mn (compared with EUR 48.9 mn in 2020). Free cash flow stood at EUR minus 445.5 mn (2020: EUR minus 614.8 mn), which was especially due to investment activities related to the projects in Thailand and Brazil. Capital expenditure on intangible assets, property, plant and equipment, and on biological assets increased by 26.3 percent to EUR 844.3 mn in the reporting period, approximately half of which was financed from cash flow from operating activities. The sharp increase in investment volumes is primarily due to the implementation of the two key projects.

The liquidity position rose by 4 percent year-on-year to stand at EUR 1.11 bn as of the end of 2021.

Solid balance sheet structure

The Lenzing Group’s total assets grew by 27.9 percent compared to December 31, 2020, and amounted to EUR 5.3 bn as of the end of December 2021. The most significant changes relate to the increase in property, plant and equipment due to the higher level of investing activities.

Adjusted equity rose by 10.9 percent to EUR 2.12 bn as of the end of 2021, primarily due to the operating profit trend in 2021. The adjusted equity ratio decreased from 45.8 percent to 39.7 percent, due particularly to the higher level of total assets. Net financial debt amounted to EUR 977 mn as of the end of the reporting year (compared to EUR 471.4 mn as of December 31, 2020). This increase reflects the financing of the two key projects in Thailand and Brazil. Net gearing rose to 46.2 percent as of the reporting date (compared with 24.7 percent as of December 31, 2020). Trading working capital increased by 0.9 percent to EUR 387.4 mn.

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