The following is a summary of the Lonza Group AG (LZAGY) Q4 2023 Earnings Call Transcript:
Financial Performance:
Lonza reported group sales of CHF 6.7 billion in 2023, showing a growth of 10.9%.
Profits stood at CHF 655 million in 2023, declining by 46% year-on-year, primarily due to divestment gains and impairment losses.
The core EBITDA remained steady at CHF 2 billion, resulting in a margin of 29.8%.
The free cash flow for 2023 was CHF 329 million, backed by net working capital improvements and CapEx prioritization.
Net debt rose to CHF 1.1 billion due to investments in organic growth and the share buyback program.
A proposed dividend increase of 14% to CHF 4 per share is planned for 2023.
Business Progress:
The company observed strong performance in Biologics and Small Molecules divisions, which generated over 70% of the revenue with a margin exceeding 30% each.
About 130 new CDMO customers and 350 new clinical and commercial programs were signed in 2023, indicating significant market operations progress.
The company foresees high capacity utilization over the next five years, led by sustained manufacturing services demand and successful Phase I drug candidates.
Sustainability efforts are being bolstered, with reductions in emission, energy, and water intensity accomplished.
For 2024, the company expects high single-digit underlying sales growth and a core EBITDA margin in the high 20s (27% - 29%), driven by sturdy commercial CDMO business performance and anticipated recovery in Capsules & Health Ingredients.
There are expansion plans for growth investments in Europe and Americas, and an improved core EBITDA margin within the 32% - 33% range by 2028 is projected.
Jean-Marc Hyvert is proposed to be the new Chairman of Lonza, as decided at the forthcoming AGM in May.
More detailed: LONZA GROUP AG UNSP ADR EACH REP 0.1 ORD IR
Tips: This article is generated by AI and the accuracy of the content can not be fully guaranteed. For more and comprehensive details, please refer to the IR website. The article is only for investors' reference without any guidance or recommendation suggestions.