• Revenue: Increased by 5% to EUR 1.3 billion compared to the first half of 2023.

• EBITDA: Increased by EUR 28 million to EUR 164 million from EUR 137 million in the first half of 2023.

• Net Result: Improved to minus EUR 71 million from minus EUR 104 million in the first half of 2023.

• Free Cash Flow: Positive at EUR 54 million in the second quarter, marking four consecutive quarters of positive free cash flow.

• Fiber Sales Volume: Increased by 21% in the first half of 2024 compared to the first half of 2023.

• Specialty Fiber Sales: Increased by 14 percentage points to 92% of total fiber sales.

• Net Financial Debt: Decreased by EUR 525 million or 27% compared to the second quarter of 2023, reaching EUR 1.4 billion.

• Liquidity Cushion: Increased by EUR 448 million or 77% compared to the second quarter of 2023, reaching EUR 1.03 billion.

• Operating Cash Flow: Increased to EUR 82 million in the second quarter of 2024 from EUR 18 million in the second quarter of 2023.

• CapEx: Decreased to EUR 28 million from EUR 52 million in the second quarter of 2023.

• Warning! GuruFocus has detected 4 Warning Signs with LNZNF.

Release Date: August 07, 2024

For the complete transcript of the earnings call, please refer to the full earnings call transcript.

Positive 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.

Negative Points

• 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.