Solid financial 2023 results for Lonza, with investments in Visp !

Lonza reports revenues of 6.7 billion Swiss francs, CER growth of 10.9%1 , and CORE EBITDA of 2 billion Swiss francs, establishing a margin of 29.8%. At the same time, the appointment of Jean-Marc Huët to succeed Albert M. Baehny as President of the company is made official.

Albert M. Baehny, Chairman of the Board and CEO ad interim, expressed his satisfaction with Lonza’s performance, attributing it to solid business fundamentals and the company’s ability to capture value in the CDMO market. Despite macroeconomic challenges, Lonza recorded strong demand for its products and maintained a healthy balance sheet, supported by solid free cash flow.

Star Performers: Biologics and Small Molecules

The Biologics and Small Molecules divisions shine with an outstanding performance, propelling Lonza to new heights, while the Cell & Gene and Capsules & Health Ingredients divisions record more modest results.

Dynamic growth and investments in Stein and Visp!

Lonza continued its dynamic growth, attracting around 130 new CDMO customers and signing around 350 new programs in 2023. The company invested 1.7 billion Swiss francs (25% of sales) in CAPEX to support future growth. Lonza also announced new projects, including a commercial filling line for antibody-drug conjugates (ADC) in Stein (CH) and a project to increase bioconjugate production capacity in Visp (CH).

A few words on the management transition

Albert Baehny, after seven years on the Board of Directors and six as Chairman, will not be standing for re-election in May 2024. Jean-Marc Huët is proposed as his successor. Albert Baehny will remain CEO ad interim until the new CEO takes office. The transition comes after Lonza’s significant contributions to the fight against the COVID-19 pandemic, consolidating its role as a key player in healthcare manufacturing.

Despite the economic challenges, Lonza maintains a healthy balance sheet, supported by strong free cash flow. The company remains determined to pursue its environmental, social and governance commitments.

Lonza proposes a dividend increase of 14%, demonstrating its confidence in future performance. Return of capital to shareholders continues, with a share buyback program underway.

Source : Press Release Lonza

Image : copyright Lonza

30 January 2024
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