Lonza Reports Stable 2024 Performance with Strategic Shifts Ahead

In its 2024 financial report, Lonza Group AG announced CHF 6.6 billion in sales, slightly declining by 0.2% in constant exchange rates. The company achieved a CORE EBITDA of CHF 1.9 billion, reflecting a solid 29.0% margin. Despite challenges in its Capsules & Health Ingredients (CHI) segment, the Contract Development and Manufacturing Organization (CDMO) business demonstrated strong performance and operational efficiency.

Lonza is projecting significant growth for 2025, with CDMO sales expected to increase by nearly 20% and CORE EBITDA margin to approach 30%. The company also outlined its "One Lonza" strategy, focusing on becoming a pure-play CDMO by exiting the CHI business. This strategic evolution aims to enhance its operational structure, with plans to create three distinct business platforms.

Lonza's progress on ESG commitments showed half of its electricity now sourced from renewables, bolstered by new solar initiatives in Europe. The company plans to maintain a CHF 4.00 dividend per share and complete its share buyback program in 2025.