Adhoc: Lonza Group AG: Capital Markets Day 2023: New Mid-Term Guidance 2024 - 2028 Supported by Ramp-Up of Growth Projects

Lonza Group AG / Key word(s): Forecast
Capital Markets Day 2023: New Mid-Term Guidance 2024 - 2028 Supported by Ramp-Up of Growth Projects

17-Oct-2023 / 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.

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Ad hoc announcement pursuant to Art. 53 LR

• At its Capital Markets Day, Lonza outlined its Mid-Term Guidance for 2024 to 2028, including: 11-13% sales growth, 32-34% CORE EBITDA margin and double-digit ROIC
• Outlook 2023: higher end of mid-to-high single-digit CER sales growth and 28 to 29% CORE EBITDA margin
• Business growth in 2024 will be offset by one-off events, with an anticipated margin in the high twenties
• Dividend pay-out commitment range increased to 35 to 45%

Lonza also issued its quarterly qualitative performance update for Q3 2023. Group financial performance in Q3 reflects continued strong CDMO business dynamics and sustained commercial demand. Biotech funding constraints continued to impact growth in early-stage services in Biologics and led to lower sales growth rates in Cell & Gene. Capsules & Health Ingredients saw continued softness in the US nutraceutical market.

Lonza reconfirmed its Outlook 2023, which was restated in the Half-Year 2023 Results in July. CER sales growth will be at the higher end of mid-to-high single-digit Outlook, with a CORE EBITDA margin above the guided 28 to 29%. This increase is driven by the one-time termination fee associated with the Moderna mRNA contract cancellation agreement in September 2023.

Business growth in 2024 will be offset by the higher base in 2023 from the Moderna termination agreement, the subsequent lost Moderna revenue in 2024, and the risk of a smaller Kodiak Sciences business in 2024. In this context, we anticipate a margin in the high twenties. Further details on Outlook 2024 will be provided at Lonza's Full-Year Results 2023 presentation in January.

Please click here to download the Capital Markets Day 2023 Presentation.

About Lonza
Lonza is a preferred global partner to the pharmaceutical, biotech and nutrition markets. We work to enable a healthier world by supporting our customers to deliver new and innovative medicines that help treat a wide range of diseases. We achieve this by combining technological insight with world-class manufacturing, scientific expertise and process excellence. Our business is structured to meet our customers' complex needs across four divisions: Biologics, Small Molecules, Cell & Gene and Capsules & Health Ingredients.Our unparalleled breadth of offerings across divisions enables our customers to commercialize their discoveries and innovations in the healthcare industry.

Founded in 1897 in the Swiss Alps, today, Lonza operates across five continents. With more than 17,500 full-time employees, we comprise high-performing teams and individual talent who make a meaningful difference to our own business, as well as to the communities in which we operate. The company generated sales of CHF 3.1 billion with a CORE EBITDA of CHF 922 million in Half-Year 2023. Find out more at www.lonza.com

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Lonza Contact Details

Victoria Morgan
Head of External Communications
Lonza Group Ltd
Tel [phone]
[e-mail]

Lyle Wheeler
Investor Relations
Lonza Group Ltd
Tel [phone]
[e-mail]

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End of Inside Information

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Language:	English
Company:	Lonza Group AG
	Münchensteinerstrasse 38
	4052 Basel
	Switzerland
Phone:	[phone]
Internet:	www.lonza.com
ISIN:	CH0013841017
Valor:	1384101
Listed:	SIX Swiss Exchange
EQS News ID:	1750145

End of Announcement	EQS News Service

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1750145 17-Oct-2023 CET/CEST