CORE results as defined by Lonza
Lonza believes that disclosing CORE results of the Group’s performance enhances the financial markets’ understanding of the company because the CORE results enable better comparison across years. The CORE results concept, which is used in the internal management of the business, is based on the IFRS results, excluding the following adjustments:
- Amortization of intangible assets resulting from business combinations
- Impairments (including reversal of impairments) of intangible assets, property, plant & equipment, goodwill and assets held for sale
- Restructuring programs in excess of CHF 0.5 million
- Acquisition and integration costs related to business combinations
- Costs related to divestitures of businesses as well as disposal gains and losses
- Impacts from discontinued operations
- Environmental remediation costs related to divested / inactive sites as well as remediation projects in excess of CHF 10 million
- Defined benefit plan settlements and curtailments in excess of CHF 10 million
- Lonza’s share of profit or loss from associates and joint ventures
Alternative Performance Measures
The reported financial information also comprise certain Alternative Performance Measure (APMs) which are not accounting measures as defined by IFRS (non GAAP measures), in particular the CORE results.
Initiation of S&P credit rating
Lonza announced the initiation of a public credit rating with Standard & Poor’s (S&P), which resulted in a BBB+ rating with a stable outlook. Lonza is committed to maintaining an investment-grade rating going forward.
Lonza's Board of Directors is proposing a stable dividend for shareholders of CHF 2.75 per share for 2019 (financial year 2018: CHF 2.75). The proposed dividend for 2019 provides a pay-out ratio of 30.7% of Lonza's reported net profit for the period 2019. Subject to approval at the upcoming AGM on 28 April 2020, 50% of the dividend of CHF 2.75 per share for 2019 will be paid out of the capital contribution reserve and will therefore be free from Swiss withholding tax.
Dividend payment history
Chart data loading...
The currency exposure reflects as follows:
Hedging policy / foreign exchange management policy and process:
- Focus on natural hedge incl. financing mix
- Contract hedging
- Centralized FX management
- Partially, active hedging of expected future FX exposure
The group operates defined-benefit pension plans in various countries, with the major plans being in Switzerland, Great Britain and the United States (these plans are described in Note 24.1, page 131 of the Financial Report in Lonza’s Annual Report 2019). For pension accounting purposes, these plans are considered as defined-benefit plans.
The significant actuarial assumptions at the reporting date (expressed as weighted averages) were as follows:
|Future salary increases||1.00||0.00||3.22||1.00||0.00||3.41|
|Future pension increases||n/a||0.00||2.33||n/a||0.00||2.47|
Additional information on Employee Benefit Liabilities e.g: are disclosed in Note 24, page 131 of the Financial Report in Lonza’s Annual Report 2019.
How much does Lonza spend on research and development (R&D)?
Research & Development (R&D) costs include all primary costs directly related to this function, as well as internal services and imputed depreciation. These costs are incurred for:
- Development of new products and services
- Improvement of existing products and services
- Development of new production processes
- Improvement of existing production processes
- Cost for patents
- Purchase price for product and process know-how to the extent not capitalized
The R&D costs amounted to CHF 188 million (2018: CHF 160 million) and represent the full range of R&D activity. However, the consolidated income statement discloses research and development costs of only CHF 123 million (2018: CHF 110 million), as the remainder of such costs are absorbed in “Cost of goods sold” for R&D products and services sold.
Where are Lonza shares traded?
Shares of Lonza Group Ltd are listed on the SIX Swiss Exchange and were included in the Swiss Market Index (SMI) in 2019. We also maintain a secondary listing on the SGX Singapore Exchange.
What is the stock symbol?
Stock Exchange Listing / Trading:
SIX Swiss Exchange
SGX Singapore Exchange
Common Stock Symbols
Bloomber LONN SW
Six Swiss Exchange LONN
SGX Singapore Exchange O6Z
Lonza's share register contact
Share Register - Registration
c/o Computershare Schweiz AG
CH-4601 Olten, Switzerland
Tel +41 62 205 7700
Fax +41 62 205 7790
How many shares does Lonza have issued?
The share capital on 31 December 2019 comprised 74,468,752 registered shares (2018: 74,468,752) with a par value of CHF 1 each, amounting to CHF 74,468,752 (2018: CHF 74,468,752).
|Number of shares issued||74,468,752||74,468,752|
|Number of shares ranking for dividend||74,288,802||74,246,157|
|Par value per share||CHF||1||1|
|Profit for the period (equity holders of the parent)||million CHF||645||559|
|Diluted profit for the period||million CHF||645||559|
|Ratios per Security||2019||2018|
|Weighted average number of shares||74,109,308||74,408,243|
|Diluted weighted average number of shares||74,564,802||74,723,145|
|Basic earnings per share||CHF||8.70||7.51|
|Diluted earnings per share||CHF||8.65||7.48|
What is Lonza doing to protect the environment?
We are committed to sustainable development in all its broad and diverse meanings. We aim to create value for society by delivering innovative, science-based solutions for our customers. We strive to reduce our use of natural resources such as water and energy, our carbon footprint and the generation of waste. In our operations, we engage and empower our employees and teams to work towards our Vision Zero – meaning zero workplace injuries, zero manufacturing process incidents, zero emissions beyond regulatory limits and zero transportation incidents. In the workplace, we aim to protect our colleagues as well, by identifying and eliminating potential hazards.
For more information, please visit our Sustainability Report.
What is Lonza's position on corporate governance?
Lonza has implemented modern corporate governance structures to ensure accountability, responsibility and transparency throughout the Group and for its shareholders. Corporate governance reporting is in compliance with the guidelines of SIX Swiss Exchange. Learn more about Lonza's position on Corporate Governance.