- Lonza increased sales by 7.9 percent to 6.72 billion francs in 2023.
- At the end of the income statement, net profit remained 655 million francs, after 1.22 billion in the previous year.
- After the end of the pandemic, the pharmaceutical supplier is preparing for a year of transition.
- One reason: Lonza no longer produces a corona vaccine for Moderna.
Lonza increased sales by 7.9 percent to 6.72 billion francs in 2023, the company announced. Adjusted for currency effects, it was plus 10.9 percent. In previous years, Lonza had seen significant double-digit growth – also thanks to the order from Moderna for the active ingredient in the corona vaccination.
Termination fee as a cushion
But Moderna no longer orders from Lonza. As compensation for the early end of the very lucrative contract, Lonza received a “termination fee” from the Americans, which, according to previous information, was around 200 million francs.
At the same time, the rising interest rate environment is slowing down many research companies and consumers remain cautious. Lonza is feeling this in the demand from biotech startups for services, but also in capsules for nutritional supplements.
Net profit shrunk
At the end of the income statement, net profit remained 655 million francs, after 1.22 billion in the previous year. The planned closure of the Guangzhou (CN) and Hayward (USA) sites will incur high costs. Impairments of 183 million francs and restructuring costs of 50 million.
Shareholders will still benefit from a 50 cent higher dividend of four francs per share.
For the “transition year” of 2024, Lonza continues to forecast an operating profit margin in the “high 20 percent range” and flat sales development. In the following years, Lonza wants to grow by 11 to 13 percent in local currencies and achieve a margin in the range of 32 to 34 percent.