- Lonza spotlighted Pharma Biotech & Nutrition (LPBN) as a driver, with 11% sales growth despite a contraction in the nutritional hard capsules business. LPBN reported a CORE EBITDA margin of 32.9%, even after an elevated level of operational expenditure (OPEX) behind growth initiatives, the company said.
- The Specialty Ingredients (LSI) segment reported weaker sales than anticipated in H2 2019, at -3.2%. Segment performance was in line with industry peers and overall softness in global endmarkets, the company said, adding that productivity gains, cost control measures and price increases resulted in a CORE EBITDA margin of 17.8%.
- For 2020, Lonza Group outlook is above mid single-digit sales growth, driven by high single-digit sales growth in LPBN, and overall stable CORE EBITDA margin.
“Our people and business have delivered a strong Full-Year 2019 result,” Albert M. Baehny, Chairman and CEO ad interim, Lonza Group, said in the release. “The biopharma business achieved double-digit sales growth and a stable CORE EBITDA margin, even though we are investing in significant growth initiatives. Our specialty chemicals businesses showed soft full-year performance after headwinds, but margins began to show improvement. 2019 was a year of change as we accelerated the portfolio review and significantly progressed with the carve-out of our Specialty Ingredients business. Our leadership changes have had no impact on our employees’ collective commitment to deliver for our customers and shareholders.”
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Looking to the future, Baehny said, “I am confident about our current momentum, and our ability to deliver on our targets in 2020. We look forward to the successful start of operations for major investment projects by the end of the year, completing the carve-out on schedule, announcing a new Group CEO and continuing to work on the delivery of our Mid-Term Guidance 2022”.