Lonza Provides Adjusted Mid-Term Guidance and Emphasizes Growth Along the Healthcare Continuum ®
Basel (CH), 4 March 2019 – Lonza announced today the adjustment of its Mid-Term Guidance 2022 to reflect the divestment of its former Water Care business unit and to emphasize Lonza's focus on growth along the Healthcare Continuum®. The adjustment consists of excluding the Water Care Mid-Term Guidance from the Lonza Group financial projections prepared in 2017. The Water Care Mid-Term Guidance was disclosed at Lonza's Capital Markets Day 2018.
In addition, Lonza is now taking the opportunity to reflect not only the Water Care divestment but also the latest strategy development. The Mid-Term Guidance 2022 was first issued in 2017. Lonza is now factoring in growth investments in its newly formed Pharma Biotech & Nutrition segment in order to participate in the anticipated market growth.
The adjusted Mid-Term Guidance for Lonza’s continuing operations (excluding the Water Care business unit) is the following:
- Sales of CHF 7.1 billion
- CORE EBITDA margin of 30.5%
- CORE RONOA 35%
- Double-digit ROIC
“This adjusted Mid-Term Guidance clearly demonstrates our focus on growing our businesses along the Healthcare Continuum® while continuing to aim for operational excellence, productivity improvements and attractive margins,” said Marc Funk, CEO Lonza.
Lonza’s Mid-Term Guidance is based on the present business composition, the present macro-economic environment, current visibility and constant exchange rates.
Lonza already announced the acceleration of its portfolio review to further strengthen the company’s position along the Healthcare Continuum®. This process is ongoing; an update on the portfolio review is currently expected to be provided in H2 2019.