Lenzing Aktiengesellschaft (OTCPK:LNZNF) Q1 2025 Earnings Conference Call May 8, 2025 9:00 AM ET
Company Participants
Rohit Aggarwal – Chief Executive Officer
Nico Reiner – Chief Financial Officer
Conference Call Participants
Christian Faitz – Kepler Cheuvreux
Patrick Steiner – ODDO
Sebastian Bray – Berenberg
Operator
[Technical Difficulty]
Rohit Aggarwal
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 continued to improve also in the first quarter of this year in a market environment that remains still challenging. Our revenue reached EUR619 million an increase of 5% compared to the first quarter last year.
EBITDA more than doubled compared to the first quarter 2024 and reached EUR156 million 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, 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 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 nonwoven markets continue to remain more robust.
With regards to market prices, we saw a slight decrease of selected generic fiber prices compared to quarter four 2024, especially towards the end of the quarter. On the cost side, energy and
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