Austrian producer Lenzing has confirmed its guidance for 2023 after signs of recovery emerged in the first quarter of the year. Revenues grew 1.3% compared to the same period in 2022 to €623.1m ($708m), due primarily to higher pulp revenues, while fibre revenues fell.
The firm is on track to achieve more than €70m in annual cost savings with its cost-cutting programme, launched last year, and is taking further measures to bolster free cash flow. In addition to the cost-cutting programme, the company is implementing steps to reduce working capital and is reorganising its currency and energy price hedging.
CEO Stephan Sielaff said: “We noted signs of recovery in terms of demand as well as energy and raw material costs during the quarter. Lenzing has successfully made great efforts in relation to both costs and liquidity and is well prepared for an upturn in demand.”
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