Basel, Switzerland—Lonza has reported sales of CHF 5.4 billion, growing 20% AER (20% CER) and CHF 1.7 billion CORE EBITDA, resulting in a margin of 30.8%.

The momentum was driven by sales growth across all divisions, according to a press release. Reported EBITDA was impacted by the provision of CHF 285 million for the environmental remediation of the old Gamsenried landfill, with no impact on CORE EBITDA and cash flow.

For the full year 2021, the total CAPEX reached CHF 1.3 billion or 24% of sales, and it is expected to increase to around 30% in 2022. This level of investment was supported by free cash flow, alongside the proceeds from the divestment of Lonza’s former Specialty Ingredients business.

Lonza is continuing to manage the impact of COVID-19 as well, noting that while disruptions look set to continue throughout 2022, “no material impact is anticipated” as long as conditions remain comparable with 2021 and 2020.

Looking at each division:
  • Biologics brought online and approved new significant expansions across modalities. Compared to Full-Year 2020, the business achieved 24.7%3 sales growth, with a lower CORE EBITDA margin of 36.3%, reflecting a combination of project mix, one-time effects and the impact of growth projects.
  • Small Molecules saw a significant number of new programs signed and the successful ramp-up of large assets in 2021. The division delivered 11.6%3 sales growth versus Full-Year 2020, alongside a slight margin improvement to 28.0%.
  • Cell & Gene performance was driven by strong customer demand and improved synergies between the Bioscience business unit and Lonza’s CDMO services. As anticipated, the Cell & Gene Technologies business achieved a positive margin in Q4. The wider division saw 26.6%3 sales growth and a margin improvement to 17.6%, compared to Full-Year 2020.
  • Capsules & Health Ingredients saw solid demand across portfolios and regions. Compared to Full-Year 2020, the division delivered 5.6%3 sales growth, with attractive and improved margins of 34.4%.

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Pierre-Alain Ruffieux, CEO, Lonza, commented: “In 2021, we remained resilient to the challenges of the pandemic. We achieved a strong business performance across our four divisions, thanks to the commitment of our dedicated employee community. We continue to meet our customers’ most pressing needs by accelerating growth in areas of sustained high margin and market demand. Looking to 2022, we will continue to maintain momentum in our organic investments to expand our global capacities and service offering while focusing on operational excellence. We are also continuing to drive forward our sustainability agenda. All of this will allow us to deliver sustained growth across our divisions. In this context, we are confident the building blocks are in place to deliver on our 2022 Outlook and our 2024 Mid-Term Guidance.”