Q1 2024 Qualitative Update: Performance In Line with Expectations for
Full-Year 2024
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Lonza Group AG / Key word(s): Quarter Results
Q1 2024 Qualitative Update: Performance In Line with Expectations
for Full-Year 2024
14-May-2024 / 07:00 CET/CEST
Release of an ad hoc announcement pursuant to Art. 53 LR
The issuer is solely responsible for the content of this
announcement.
____________________________________________________________
Ad hoc announcement pursuant to Art. 53 LR
* Outlook 2024 remains flat CER sales growth and CORE EBITDA
margin of high 20s
* Softer performance in Q1 2024, normalizing across H1 2024
* Sustained commercial demand in CDMO business with initial
signs of early-stage recovery
* Key growth projects due to start in 2024 progressing in line
with plan
* Revised definition of three Alternative Performance Measures
from H1 2024
Basel, Switzerland, 14 May 2024 - In its quarterly qualitative
update, Lonza reported a softer Q1, with performance across H1
expected to align with the Full-Year 2024 trajectory.
Lonza confirms its Outlook 2024 at flat sales growth in CER and
Core EBITDA margin of high 20s. H2 2024 sales are expected to be
solid, reflecting the timing of batch releases.
In Biologics, there was good momentum across the division with
sustained commercial demand, while clinical demand remained
softer, despite early signs of biotech funding recovery. The
Small Molecules division also saw strong commercial demand, and
made continued progress on strategic investments. Cell & Gene
delivered improved commercial and operational performance in Cell
& Gene Technology, while market headwinds impacted Bioscience
primarily in its media business. Finally, the performance of the
Capsules & Health Ingredients division was softer than expected
due to a combination of weaker demand for pharma hard capsules in
western markets, and lower margins in its nutraceutical business
despite improved demand.
Lonza's key growth projects are progressing in line with plan.
Operations are expected to commence at the large-scale Mammalian
drug substance and highly potent API facilities in Visp (CH) in
Q4 2024. Construction is on track at the large-scale commercial
drug product facility in Stein (CH).
In Q1 2024, Lonza announced it had signed an agreement to acquire
the Genentech manufacturing facility in Vacaville (US) from Roche
for USD 1.2 billion in cash. Lonza plans to invest around CHF 500
million to upgrade the facility and enhance capabilities at the
site to accommodate the next generation of mammalian biologics
therapies. In this context, Mid-Term Guidance 2024 - 2028 sales
growth range was updated from 11 - 13% CAGR in CER^1 to 12 - 15%.
All other Mid-Term Guidance metrics are unchanged.
On 2 April 2024, the Board of Directors was pleased to appoint
Wolfgang Wienand as the new Chief Executive Officer of Lonza. He
will join the company during the summer of 2024.
Albert M. Baehny, CEO ad interim, Lonza, commented: "We made good
progress in Q1 2024 with the strategic acquisition of the
large-scale biologics site in Vacaville and the appointment of
Lonza's new CEO, Wolfgang Wienand. Looking at our industry
fundamentals, we remain well-positioned to capture value by
maintaining our focus on growing our commercial offering, while
managing our costs and maintaining our focus on operational
excellence."
Lonza has revised the definition of three Alternative Performance
Measures including CORE EPS, Free Cash Flow and Divisional CORE
EBITDA. The new definitions will be reflected in the H1 2024
reporting process. The changes are designed to enhance
transparency and efficiency and will not change IFRS reporting.
Additional information, including Restated Full-Year 2023,
Half-Year 2023 and Full-Year 2022 results, can be found here.
About Lonza
Lonza is one of the world's largest healthcare manufacturing
organizations. Working across five continents, our global
community of around 18,000 colleagues helps pharmaceutical,
biotech and nutrition companies to bring their treatments to
market. United by our vision to bring any therapy to life, we
support our customers with a combination of technological
insight, world-class manufacturing, scientific expertise, process
excellence and innovation. Our work enables our customers to
develop and commercialize their therapeutic discoveries, allowing
their patients to benefit from life-saving and life-enhancing
treatments.
Our business is structured to meet our customers' complex needs
across four divisions: Biologics, Small Molecules, Cell & Gene,
and Capsules & Health Ingredients. Our company generated sales of
CHF 6.7 billion with a CORE EBITDA of CHF 2.0 billion in
Full-Year 2023. Find out more at www.lonza.com
Follow @Lonza on LinkedIn
Follow @LonzaGroup on X
Lonza Contact Details
Victoria Morgan
Head of External Communications
Lonza Group Ltd
Tel +41 61 316 2283
victoria.morgan@lonza.com
Daniel Buchta
Head of Investor Relations
Lonza Group Ltd
Tel +41 61 316 2985
daniel.buchta@lonza.com
____________________________________________________________
End of Inside Information
____________________________________________________________
Language: English
Company: Lonza Group AG
Münchensteinerstrasse 38
4052 Basel
Switzerland
Phone: +4161 316 81 11
Internet: www.lonza.com
ISIN: CH0013841017
Valor: 1384101
Listed: SIX Swiss Exchange
EQS News ID: 1901891
End of Announcement EQS News Service
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1901891 14-May-2024 CET/CEST