Capital Markets Day 2023: New Mid-Term Guidance 2024 – 2028 Supported by Ramp-Up of Growth Projects
- At its Capital Markets Day, Lonza outlined its Mid-Term Guidance for 2024 to 2028, including: 11–13% sales growth, 32–34% CORE EBITDA margin and double-digit ROIC
- Outlook 2023: higher end of mid-to-high single-digit CER sales growth and 28 to 29% CORE EBITDA margin
- Business growth in 2024 will be offset by one-off events, with an anticipated margin in the high twenties
- Dividend pay-out commitment range increased to 35 to 45%
Lonza also issued its quarterly qualitative performance update for Q3 2023. Group financial performance in Q3 reflects continued strong CDMO business dynamics and sustained commercial demand. Biotech funding constraints continued to impact growth in early-stage services in Biologics and led to lower sales growth rates in Cell & Gene. Capsules & Health Ingredients saw continued softness in the US nutraceutical market.
Lonza reconfirmed its Outlook 2023, which was restated in the Half-Year 2023 Results in July. CER sales growth will be at the higher end of mid-to-high single-digit Outlook, with a CORE EBITDA margin above the guided 28 to 29%. This increase is driven by the one-time termination fee associated with the Moderna mRNA contract cancellation agreement in September 2023.
Business growth in 2024 will be offset by the higher base in 2023 from the Moderna termination agreement, the subsequent lost Moderna revenue in 2024, and the risk of a smaller Kodiak Sciences business in 2024. In this context, we anticipate a margin in the high twenties. Further details on Outlook 2024 will be provided at Lonza’s Full-Year Results 2023 presentation in January.
Please click here to download the Capital Markets Day 2023 Presentation.