Lonza achieved a solid result for 2024 with a constant turnover and 29.0% KerneBitda margin

The sales in the CDMO business were powered by an underlying sales growth in the low ten-ten area, which was supported by a strong performance in the Mammalian, Bioconjugates, Small Molecules and Cell & Genes Technologies. This positive dynamic compensated for the loss of Covid-related MRNA business in 2023, the lower market demand for capsules in the Capsules & Health Ingredient division and a weakened bioscience business.

The business highlights in 2024 were generally strong dynamics of order and contracts worth around CHF 10 billion. In the further Lonza on October 1, the acquisition of a large system for the production of active ingredients from mammalian cells from Roche Genentech successfully at the Vacaville (USA) location and has since signed two new customer contracts. With investments in the amount of CHF 1.4 billion in 2024 (22% of sales), Lonza has made good progress in implementing its ongoing organic investment program to enable future growth in all technologies.

At your Investor update In December 2024, Lonza announced the new vision and one-Lonza strategy, which focuses on the Lonza Engine, which combines the company’s unique core competencies, which enable outstanding added value. As part of this strategy, Lonza has announced the intention of withdrawing from the Chi business and developing into a pure CDMO company. The separation will take place at the right time and in the best interest of the shareholders and stakeholders, whereby it ensures that Chi continues to serve customers and, as a global market leader, achieve profitable growth in this area. In the second quarter of 2025, an optimized operating model with three newly formed business platforms will be introduced to support the one-Lonza strategy and to prepare for future growth: Integrated Biologics, Advanced Synthesis and Specialized Modalities. In addition, Lonza will increase the importance of bolt-on acquisitions and pursue an agnostic approach to organic and inorganic growth opportunities.

Lonza has further progress in her ESG obligations in 2024⁴ made. Half of the company’s electricity now comes from renewable sources, supported by the start of electricity production from photovoltaic systems in Spain as part of a virtual electricity acceptance contract for all Lonza locations in Switzerland and the European Union.

For 2025, Lonza expects a strong performance in the CDMO business⁵ With sales growth of approximately 20% and a core Bitda margin of almost 30%. In exclusion from the Vacaville location, which is supposed to pay a contribution of around CHF 0.5 billion with less profitability, Lonza expects organic sales growth (KWK) in the lower ten area and an improvement in the margin in the CDMO business.

For Chi, Lonza expects that sales and core bebitda will grow again in 2025, with sales growth in the low to medium single-digit percentage range and a core BITDA margin in the middle twenties area.

Wolfgang Wienand, CEO, commented: “In 2024, our market-leading CDMO business areas showed good commercial dynamics with high contracts in all technologies. With a view to 2025 and beyond, we focus on the implementation of our one-Lonza strategy and a streamlined, easy-to-scaling organizational structure. This will promote future growth and lead to an even better customer experience of our services.

The Lonza Board of Directors will propose to the General Assembly of the Lonza Group in May 2025 to pay a dividend of CHF 4.00 per share again. Subject to the approval, 50% of the dividend is paid from the capital reserve reserve, which means that it is exempt from Swiss transfer tax.

Based on the strong balance sheet and the positive views, Lonza continued to return excess capital to shareholders with the share buyback program of up to CHF 2 billion in March 2023. By December 31, 2024, shares worth around CHF 1.7 billion were bought back. It is expected that the entire buyback program will be completed as planned in Q1 2025.

Divisional overview

• Biologics recorded sales at the age of the previous year (-0.5%⁶), whereby the growth was compensated for by the loss of the covid-related mRNA business and the associated effects of termination in 2023 due to the continued commercial demand. The KerneBitda margin of 34.4% was supported by an advantageous product mix and a strong operational performance, some of which were compensated for by the start-up costs for new production facilities. Without the covid-related mRNA business in 2023, Biologics achieved an underlying sales growth in the low tens area and the KerneBitda margin rose significantly compared to the previous year.
• Small molecules recorded sales growth of 9.3%⁶ Compared to the previous year with a strong core Bitda margin of 35.7%, which is due to high commercial demand, strong operational performance and the continued portfolio shift towards high-quality products and complex service offers.
• Cell & genes recorded sales growth of 1.1%⁶ compared to the previous year. This is due to the strong operational performance of Cell & Gene Technologies, some of which was compensated for by the weaker performance of bioscience. Compared to 2023, the division was able to significantly improve its KerneBitda margin by 5.9 percentage points. This was supported by positive margins at Cell & Gene Technologies and productivity measures at BIOSCIENCE. Without the one -time contribution from the termination of the contract with Codiak Biosciences in 2023, the turnover of the division grew by robust 10%⁶.
• Capsules & Health Ingredients recorded a drop in sales of 6.6%⁶which is due to a weak demand for pharmacapsules due to the mining of inventory stocks for customers. At the end of 2024, the business with Nutraceutical capsules again reached the volume of before the Covid-19 pandemic, albeit still at a lower price level, while Dosage form solutions benefited from solid growth. The division recorded a core Bitda margin of 24.3%, which was impaired by a lower system utilization due to the weaker demand and lower nutraceutical prices. This was partially compensated for by productivity initiatives throughout the network, including the positive first effects of the newly introduced, superior, superior, company-owned D90 technology for capsule production, as well as through cost reduction measures.

At a glance at an overview of the financial development of the group

You can find more details in the Presentation for the entire year 2024,, in the Report for the entire year 2024 and im Report on alternative performance indicators (APM) 2024.

¹In constant exchange rates.
²CDMO: Lonza without Chi.
³In actual exchange rates.
⁴In German: environment, social affairs and corporate management.
⁵CDMO: Lonza without Chi.
⁶All numbers for sales growth, expressed in percent (%), were calculated based on constant exchange rates (KWK).