Lonza Reports Strong Q1 Results, Robust Growth in Specialty Ingredients
25 Apr 2017 --- Lonza has reported a record quarter in terms of sales and earnings during the first quarter of 2017, resulting from a particularly strong performance in the Pharma & Biotech segment and continued robust growth in the Specialty Ingredients segment.
“Following the record results last year, we have been able to continue our success into 2017. The major drivers were again the businesses along the entire healthcare continuum,” says Richard Ridinger, CEO of Lonza. "We are using this strong momentum to make the necessary investments into future-oriented projects that will continue to bring us closer to the goal of becoming a leading supplier within the healthcare continuum and our various specialty ingredients markets. The expected close of the Capsugel acquisition in Q2 will help us to get there faster.”
With improved profitability in the first quarter, the company’s Specialty Ingredients segment delivered robust results in most markets. Additionally, Consumer Care showed a positive start to the year, thanks to the increased focus on consumer health and nutrition. Completed in September 2016, the InterHealth acquisition has complemented Lonza’s offerings in this sector, the company says, adding that ongoing demand in the Hygiene Business and the continued momentum in vitamin B3 solutions are further boosting performance in those areas.
Reduced demand patterns in the Agro Ingredients market are softening growth, while the feed additives and molluscicides businesses continue to develop well.
Following these positive results, the company has upgraded its outlook for the rest of the year. The outlook is on a Lonza standalone basis, with sales growth upgraded from mid-single digit growth to high-single digit growth; CORE EBITDA above CHF 1 billion (923.5 million euros); double-digit CORE EBIT growth significantly above sales growth; and CORE RONOA above 21.5%.
This upgraded outlook is based on the present macro-economic environment, current visibility and constant exchange rates for the most important currencies in which Lonza is trading, the company says, adding that it intends to provide an update of the mid-term guidance as part of the half-year results report on 26 July, assuming a closing of the Capsugel deal within the second quarter of 2017.
