Lonza sets 2023 targets with new structure
Adds details, background
ZURICH, Oct 15 (Reuters) - Lonza Group LONN.S expects double-digit sales growth, a core EBITDA margin of around 33%-35% and a double-digit return on invested capital (ROIC), it said while laying out its 2023 group guidance under a new structure with four divisions.
The Swiss contract drug manufacturer said on Thursday it expected capital spending in 2021 and 2022 to remain at 2019 levels.
"The business anticipates double-digit sales growth driven by Biologics, Small Molecules and Cell & Gene Therapy businesses," it said, with double-digit ROIC driven by growth and margin expansion.
"In this context, Lonza Group is confident to deliver an improved CORE EBITDA margin, although it is committed to investing in future growth projects," it added.
Lonza is separating Lonza Specialty Ingredients (LSI), its lagging chemicals division, into a stand-alone unit ahead of a sale process that is starting, people close to the matter told Reuters last month.
It is also building manufacturing facilities to make ingredients for Moderna Inc's MRNA.O prospective COVID-19 vaccine, one of several candidates now being put through clinical trials in a bid to try to halt the spread of the new coronavirus.
(Reporting by Michael Shields Editing by Riham Alkousaa)
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