Lonza 2018 9% Organic Sales Growth and Strong Profitability Driven by Healthcare

• Lonza delivered its Full-Year 2018 results with sales of CHF 5.5 billion at a record 27.3% CORE EBITDA margin for Lonza’s continuing operations
• Outperformance in Pharma & Biotech with 14% sales growth and margins up 260 bps was combined with positive momentum in the Consumer Health division
• Lonza continued to benefit from the performance and synergies of the successfully integrated Capsugel businesses, having completed the first full year as a combined company
• The challenging environment for cyclical parts of the Consumer & Resources Protection portfolio continued to have a negative impact on the business throughout the year; countermeasures are being implemented to improve profitability
• Lonza launched further growth initiatives to expand its global and technological footprint, especially in biologics, including the expansion of Ibex™ Solutions in Visp (CH)
• Mid-Term 2022 Guidance confirmed and 2019 Outlook announced
• Review of the business portfolio to be accelerated to further strengthen company’s position along the Healthcare Continuum®
• At the Annual General Meeting, the Board of Directors will propose a stable dividend for shareholders of CHF 2.75 per share for 2018

Outlook 2019

In 2019 Lonza will focus on the thorough execution of its growth projects in what is expected to be a year of significant investments. Lonza is also factoring into its outlook the continued macro-economic uncertainty and some potential ongoing headwinds in the cyclical parts of Lonza’s Specialty Ingredients businesses.

Based on these assumptions, Lonza is providing the following outlook for Full-Year 2019:

• Mid-to-high-single digit sales growth
• Sustained high CORE EBITDA margin level

In addition, Lonza will accelerate the review of its current portfolio to further strengthen the company’s position along the Healthcare Continuum®. At the same time, Lonza will continue to focus on operational and commercial excellence while investing in innovation and growth, especially in the biologics businesses. Lonza will also be continuing to implement measures to counter the cyclical-exposed businesses. An update on profitability measures and outlook will be provided with the Q1 Qualitative Business Update 2019.

The Outlook 2019 is based on the present business composition for Lonza’s continuing operations (excluding the Water Care business unit), the present macro-economic environment, current visibility and constant exchange rates. The Outlook 2019 is a next step toward achieving Lonza’s Mid-Term Guidance 2022. After becoming fully operational, all investments previously announced are expected to accelerate top-line growth and profitability from 2021 and to contribute to Lonza’s mid-term targets.

https://www.marketscreener.com/LONZA-GROUP-2956013/news/Lonza-Achieved-Another-Excellent-Full-Year-Result-in-2018-with-9-Organic-Sales-Growth-and-Strong-Pr-27934752/