The war in Ukraine and the more restrictive monetary policy pursued by many central banks in order to combat inflation will continue to have a negative effect on global economic activity. The easing of China’s zero-Covid policy could be a catalyst for a faster-than-expected recovery. However, the IMF warns that risks remain high overall and forecasts growth of 2.9 percent for 2023.

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

This challenging market environment is continuing to weigh on the consumer climate and on sentiment in the industries relevant to Lenzing. The outlook has recently brightened somewhat and stocks along the value chain have begun to normalize. However, subdued demand continues to cause concern among market participants.

In the market for cotton, which acts as a lead indicator, stock levels have reduced recently, but remain above pre-Covid levels. Signs of a decrease in stocks in the current 2022/2023 harvest season are emerging.

Significantly higher prices on energy and raw material markets are continuing to make the market environment very challenging.

Earnings visibility remains limited overall.

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 will continue to push ahead with growth in its specialties area as well as with its sustainability goals, including the transformation from a linear to a circular economy model.

Taking into consideration the aforementioned factors and assuming a significant market recovery in the second half of the year, for 2023 the Lenzing Group anticipates EBITDA to be significantly higher than in the previous year.

Lenzing, March 1, 2023
Lenzing Aktiengesellschaft

The Managing Board

Stephan Sielaff
Chief Executive Officer

Nico Reiner
Chief Financial Officer

Robert van de Kerkhof
Chief Commercial Officer Fiber

Christian Skilich
Chief Pulp Officer

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