WASHINGTON (dpa-AFX) - Lonza Group AG (LZAGF.PK), a supplier to the pharmaceutical, healthcare and life-science industries, reported Friday weak EBITDA, a key earnings metric, in its fiscal 2023, but higher sales.
Further, Lonza's Board of Directors proposed a 14 percent dividend increase to 4 francs per share.
Looking ahead for fiscal 2024, Lonza expects flat CER sales growth and a CORE EBITDA margin in the high twenties. The outlook reflects continued strong underlying CDMO business performance, offset by the growth headwind from around 500 million francs in Moderna sales and related termination impacts in 2023.
Lonza also confirmed its Mid-Term Guidance 2024 - 2028, including 11-13 percent sales CAGR in CER, and 32-34 percent CORE EBITDA margin.
The company also confirmed plans to optimize its global Biologics network by decommissioning its small-scale manufacturing facilities in Guangzhou in China and Hayward in US. The phased closures are expected to begin in the first quarter this year and complete in first quarter 2025. The Biologics division will retain a commercial sales organization in China.
Separately, Lonza announced the appointment of Jean-Marc Huet to succeed Albert Baehny as Chairman.
Jean-Marc Huet is currently Chairman of Heineken N.V., and former CEO of Unilever, Bristol-Myers Squibb and the specialized nutrition company Royal Numico N.V.
After seven years as Board member and six years as Chairman of Lonza, Baehny has decided to not stand for re-election at the upcoming Annual General Meeting in May 2024.
Baehny will remain ad interim CEO of Lonza until the new CEO commences their tenure. Baehny joined the Board of Lonza in 2017 and assumed the role of Chairman in 2018.
Fiscal 2023 EBITDA declined 9.3 percent to 1.94 billion Swiss francs from last year's 2.14 billion francs. EBITDA margin declined to 28.9 percent from 34.4 percent a year ago.
CORE EBITDA was 2 billion francs, up 0.2 percent from last year, resulting in a margin of 29.8 percent, down from 32.1 percent a year ago.
Sales grew 8 percent to 6.72 billion francs from last year's 6.22 billion francs. Sales growth was 10.9 percent in constant currency rates.
The solid financial results were driven by the Biologics and Small Molecules divisions, with a softer performance in Cell & Gene and Capsules & Health Ingredients.
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