Lenzing Ag Ord (LNZNF) Q1 2025 Earnings Call

Investor webinar replay

Replay transcript excerpt

Thank you, Carmen. Ladies and gentlemen, welcome to the presentation of Lenzing's results of the first quarter 2025. With me today, as usual, is Nico Reiner, our CFO. Let's start with an overview of the key developments. Revenue and EBITDA continue to improve, also in the first quarter of this year, in a market environment that remains still challenging. Our revenue reached 690 million euros, an increase of 5% compared to the first quarter last year. EBITDA more than doubled compared to the first quarter 2024 and reached 156 million euros with an EBITDA margin increasing from 11 to 23%. Free cash flow was back to positive in the first quarter. However, not on the very high level we have seen in quarter one of 2024. Overall, our performance continues to show very positive developments despite the lack of market recovery. As I said, the markets remain challenging also in the beginning of 2025. Since the inauguration of Donald Trump and his first tariff announcements, market uncertainty has clearly increased However, the direct impact on the first quarter 2025 was still relatively limited, as the measures intensified in the beginning of the second quarter. Let's start with a brief overview on demand, prices, as well as input costs. On the demand side, global apparel markets developed mostly flat, while non-urban markets continue to remain more robust. With regards to market prices, we saw a slight decrease of selected generic fiber prices compared to Q4 2024, especially towards the end of the quarter. On the cost side, energy and caustic soda market prices remained elevated versus pre-crisis levels. Let's look at the relevant markets for lensing, textiles and nonwovens. When adjusted for inflation, global demand for apparel remained almost unchanged, with modest growth ...