Lenzing, a key player in the cellulosic fibre industry, has announced it generated €2 billion in revenue over the first three quarters of its 2024 fiscal year. This 5% growth is a welcome development after last year’s decline, marking a transitional phase for the company.

The company, which produces fibres derived from chemically processed wood pulp, also saw EBITDA rise by 20.3% over nine months, reaching €191.8 million. This is a significant improvement for the group, which had posted negative EBITDA of €138.2 million in the first quarter of 2024.

These positive signs come during a strategic period for the company. In June, 15% of Lenzing’s shares were sold by the Austrian B&C Group to Brazilian company Suzano, one of the world’s largest commercial cellulose producers, with a net annual revenue exceeding €7 billion in 2023.

“We continue to implement strict cost management and focus on strengthening our global sales operations,” said Rohit Aggarwal, who took on the CEO role in September. “At the same time, we are adapting our organisational structure to meet new market conditions, thereby reinforcing Lenzing’s position as a leading integrated fibre group.”

In an October interview with FashionNetwork.com, Lenzing’s new CEO outlined his aim to increase consumer awareness of Lenzing’s brands (Tencel, Lyocell, Modal, Ecovero, among others) while positioning the company as a logical alternative to artificial materials derived from hydrocarbons.

In fiscal year 2023, Lenzing generated €2.5 billion in revenue, a slight decrease from the previous year. EBITDA, however, rose from €241 million to €303 million in a year.