Lonza Meets FY 2020 Guidance

Basel, Switzerland—Lonza has reported its full-year 2020 results, noting in a press release that the company delivered on its guidance.

“The full-year results reflect our commitment and focus to maintaining operations throughout the COVID-19 pandemic, while making an active and decisive contribution to controlling it,” said Pierre-Alain Ruffieux, CEO of Lonza Group, in the press release. “Double-digit sales growth for Lonza is a testament to the exceptional commitment of our employees in these extraordinary times. It also demonstrates the resilience of the business during a year of unprecedented change.

“While 2020 delivered strong financial results,” Ruffieux continued, “it was also a year of operational and strategic advances, including the decision to divest LSI and refocus our business as a leading partner dedicated to the healthcare industry. We have also changed our organizational structure to create clarity for customers while improving productivity and operational efficiency. These developments have set us up for a strong year ahead, while we continue to anticipate and manage the business impacts of the COVID-19 pandemic. Looking to the longer term, we are maintaining our focus on strategic CAPEX investments to support our growth momentum, while redoubling our focus on sustainability.”

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Highlights include:

  • CHF 4.5 billion in sales
  • 12% sales growth
  • CHF 1.4 billion EBITDA, resulting in a 31.2% margin
  • Strong Pharma Biotech & Nutrition performance with 12.2% sales growth and 32.1% EBITDA margin
  • Production of the drug for the Moderna COVID-19 vaccine has commenced at the Portsmouth site in the USA and the Visp site in Switzerland

The press release also notes that progress has been made in the sale of the Specialty Ingredients segment, which is reported as a discontinued operation, although it delivered 3.4% sales growth.

Lonza’s guidance for full-year 2021 includes low double-digit CER sales growth and improved EBITDA margin, but the company noted that all forecasts should be treated with caution due to uncertainty arising from the pandemic.