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Lonza sees EBIT growth of 11%

For the financial year 2014, Lonza has delivered its expected core EBIT growth of 11% in constant exchange rates (+9% in reported currency), supported by both the Specialty Ingredients and Pharma&Biotech segments. Revenues grew by 3% in constant exchange rates (+1.6% in reported currency) to CHF 3.64 billion in reported currency. The core EBITDA margin […]

For the financial year 2014, Lonza has delivered its expected core EBIT growth of 11% in constant exchange rates (+9% in reported currency), supported by both the Specialty Ingredients and Pharma&Biotech segments.

Revenues grew by 3% in constant exchange rates (+1.6% in reported currency) to CHF 3.64 billion in reported currency. The core EBITDA margin of 20.4% exceeded original guidance given in 2012 for 2015, one year ahead of schedule. Profit for the period increased by 172% to CHF 237 million.

Most of the individual businesses performed according to expectations, the company said. Unfavourable weather conditions in the Water Treatment business had a negative impact on revenues for the second consecutive year, as well as time-consuming, complex tech transfers and validations/qualifications in Pharma&Biotech businesses and portfolio optimisations such as the impact of Hopkinton, MA (USA) shutdown.

“For the third consecutive year, our full-year results demonstrate that we’re making good progress in transforming Lonza. Thanks to the efforts of our employees and managers, we will continue our journey from a product-focused organization into a market-driven one,” said Richard Ridinger, CEO of Lonza. “Our focus on quality and operational improvements produced positive results in 2014. We are also proud that during our ongoing transformation, we have achieved the best safety results in our company’s history.”

In 2014 Lonza’s Specialty Ingredients segment delivered what the company described as a solid financial performance with substantially improved profitability, more active portfolio management and marketing efforts, and more innovation. Innovative approaches resulted in a noteworthy number of new product launches driven by market demand and customers’ desire for technologically led, environmentally friendly and affordable solutions.

The transformation of Lonza will continue in 2015 as planned and previously announced, the company said. In 2015, Lonza will continue to focus on improving operational efficiency with a stronger focus on embedding quality and balancing the portfolio with a more favourable product mix of higher-margin products and services. Lonza said that it is well positioned for further measurable positive development in 2015.

Underlying business performance leads the company to be confident it will grow sales and profits in 2015. However, due to the recent and unexpected volatility in financial and currency markets, Lonza has decided to re-evaluate its outlook and to provide guidance for 2015 at a later stage. Lonza said that it continues to have a positive outlook for the future as it is well positioned in its markets.