The International Monetary Fund forecasts global growth of 4.4 percent for 2022. However, the economic recovery from the deep recession caused by COVID-19 remains at risk, and continues to depend on the further course of the pandemic and its implications for individual economic sectors. The sharp rise in energy costs and problems in global supply chains pose further economic challenges. In addition, it has become increasingly important to monitor geopolitical risks. In particular, the military conflicts in Ukraine will have a negative impact on the global economy. The currency environment is expected to remain volatile in the regions relevant to Lenzing.
The extensive recovery in demand in the global textile and apparel industry also led to a recovery in demand and rising prices on the world fiber market in 2021. In the trend-setting market for cotton, signs are emerging of a slight increase in stock volumes in the current 2021/2022 harvest season, although dynamics on international commodity markets and global supply chain problems are likely to continue to have a significant impact on price trends in 2022. At their peak, fiber pulp prices rose by more than 50 percent in 2021. The price stood at USD 905 per tonne as of December 31, 2021.
Lenzing continues to assume growth in demand for environmentally compatible fibers for the textile and clothing industry as well as the hygiene and medical sectors. However, the currently positive market environment continues to be characterized by uncertainty due to the ongoing pandemic. Visibility remains limited as a consequence. Following significant cost increases in 2021, ongoing cost pressure on the energy, raw materials and logistics sides is expected in the first quarters of 2022.
Taking into consideration the aforementioned factors and the imminent commissioning and completion of the key strategic projects, which will already make an initial contribution to earnings starting in the current financial year, the Lenzing Group anticipates that EBITDA in 2022 will lie significantly above the 2021 level.
Lenzing, March 01, 2022
Lenzing Aktiengesellschaft
The Managing Board
Cord Prinzhorn
Chief Executive Officer
Thomas Obendrauf
Chief Financial Officer
Robert van de Kerkhof
Member of the Managing Board
Stephan Sielaff
Member of the Managing Board
Christian Skilich
Member of the Managing Board
