Lonza Half-Year 2008 Results
July 23, 2008 | by Lonza
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July 23, 2008, Basel. Lonza Group Ltd (SWX: LONN) today announced its financial results for the first half of 2008 ended on 30 June 2008. In this period, sales grew by 13.0% to CHF 1 463 million based on continuing operations. EBIT grew by 15.2% to CHF 235 million and EBIT margins increased by 1.3 percentage points to 16.1% of sales compared to the same period last year.
Cost and efficiency improvements from operational excellence programs balanced most of the currency effects. All future growth programs are progressing well. The projects designed to deliver sustainable, above-average, profitable growth continue to be on or ahead of schedule. Lonza has added 395 employees to its workforce since the end of 2007, an increase of 5.1%, in line with the long-term human resources strategy. The strengthening of the balance sheet further improves flexibility and the ability to generate sustainable growth. Highlights
Results on track on key financial metrics, led by growth in Exclusive Synthesis and Life Science Ingredients, together with cost and efficiency improvements:
- Sales up 13.0% to CHF 1 463 million1 - EBIT up 15.2% to CHF 235 million - EBIT margins up by 1.3 percentage points to 16.1% of sales - Net income up 82.9% to CHF 267 million (book gain on the sale of the remaining stake of Polynt S.p.A.)
- Gearing decreased from 88% (1H07) to 76% (1H08) - Net working capital down to 18.6% in 1H08 from 24.3% of sales in 1H07 - RONOA up to 15.7% in 1H08 from 13.8% 1H07
“Lonza’s mix of life science products and services and the general stability of its markets contributed to a balanced performance across its businesses. We are pleased with our execution of programs and projects in this period,” remarked Stefan Borgas, CEO. “Despite some turbulence in the general economy, we had a strong financial performance and continued to make significant progress in the execution of our long term growth plans.”
Outlook All strategic projects are on track. With sound execution of its long-term plan, Lonza continues to drive aggressive growth initiatives in the form of strategic investments and organic growth projects. Based on visibility of contracts, projects and economic conditions, Lonza expects:
- EBIT growth in the mid to high teens up to 2013 - Project pipeline fully aligned to support growth expectations – 80% of capacity expansion committed today.
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Source: Lonza, Press release