BRUSSELS/FRANKFURT/PARIS (dpa-AFX) - Lonza (LZAGF.PK) said its third quarter financial performance 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, the Group noted. Capsules & Health Ingredients saw continued softness in the US nutraceutical market, Lonza said.
Looking forward, Lonza reconfirmed its 2023 outlook. 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%. The company said the increase is driven by the one-time termination fee associated with the Moderna mRNA contract cancellation agreement in September 2023.
The company expects its 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. Lonza projects a margin in the high twenties.
Lonza issued new Group mid-term guidance 2024 - 2028. This includes: 11-13% sales CAGR in CER, 32-34% CORE EBITDA margin, and double-digit ROIC.
Lonza has increased dividend payout range from 25-40% to a new range of 35-45%.
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