Half Year 2024 Lenzing AG Earnings Call Transcript
Key Points
- Lenzing AG (LNZNF) reported a 5% increase in revenue to EUR1.3 billion for the first half of 2024, driven by their performance program.
- EBITDA increased significantly by EUR28 million to EUR164 million compared to the first half of 2023.
- The company achieved positive free cash flow for the fourth consecutive quarter, amounting to EUR54 million in Q2 2024.
- Lenzing AG (LNZNF) has successfully reduced its net financial debt by EUR525 million, or 27%, compared to Q2 2023.
- The holistic performance program is ahead of schedule, with significant improvements in cost and top-line performance, contributing to better-than-expected operational results.
- The generic fiber market has shown little signs of recovery, with prices remaining under pressure.
- Lenzing AG (LNZNF) reported a net loss of EUR71 million for the first half of 2024, although this is an improvement from the previous year's loss.
- Input costs, particularly for energy and chemicals, remain elevated compared to 2020 levels, impacting profitability.
- The company faces challenges in the textile market, with global apparel demand slightly negative and European demand down by 6% year-on-year.
- Despite improvements, Lenzing AG (LNZNF) is not yet satisfied with its absolute financial results and acknowledges the need for further progress.
Ladies and gentlemen, welcome to the analyst conference call. I am Maria, the Chorus Call operator. And the conference is being recorded.
(Operator Instructions)
The conference must not be recorded for publication or broadcast.
At this time, it's my pleasure to hand over to Stephen Sielaff, CEO. Please go ahead.
Yes. Thanks a lot and a very warm welcome also from my side to the presentation of the Lenzing results for the first half of 2024. With me, as usual, is our CFO, Nico Reiner. So as a first start, let's go through the agenda for today. We will start, as you know, it from former calls with the executive summary, followed by a market update.
Nico will guide you through the financials afterwards, and I will share an update on our holistic performance program as well as the outlook. And as usual, at the end, we are looking forward to your questions in our Q&A session. Let's start with an overview of the key developments. And to sum
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