Swiss life-sciences company, Lonza Group, has reported lower earnings for last year despite higher revenue, citing continued investments. Looking forward, the company expects sales growth to be flat in 2024 compared to the previous year.
Performance Overview
Lonza Group’s net profit for 2023 amounted to 655 million Swiss francs ($755.5 million), a decrease from 1.22 billion Swiss francs the year prior. However, sales experienced a notable increase of 7.9% to reach 6.72 billion Swiss francs. This growth was driven by gains in the biologics and small molecules sectors, which offset a decline in the capsules-and-health ingredients segment.
Core Earnings and Dividend Plans
Despite the decline in profit, Lonza’s core earnings before interest, taxes, depreciation, and amortization (Ebitda) saw a slight increase of 0.2% to 2.0 billion Swiss francs. However, the Ebitda margin dropped from 32.1% to 29.8%.
In light of their financial performance, Lonza Group plans to propose an increase in their dividend from CHF3.50 to CHF4 per share.
Share Buyback Execution
Additionally, Lonza Group is set to continue its share buyback program, with an expected total value of up to 2 billion Swiss francs. This buyback plan is projected to be completed in the first half of 2025.
