Lonza is reaping the rewards of its reorientation towards pharma

news-single-imgcaption" style="width:240px">Lonza’s management intends to maintain a growth rate of more than 5% over the year started. (Keystone)

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The chemist and subcontractor of the pharmaceutical industry Lonza increased its revenues last year by almost 7% to 5.92 billion francs. The growth spurt was driven exclusively by the Pharma Biotech and Nutrition segment, while the struggling Specialty Ingredients unit continued to contract.

The board of directors will propose to shareholders a stable dividend of 2.75 francs per share for 2019.

Adjusted gross operating surplus (basic Ebitda) followed the same curve as revenue to stand at 1.62 billion. Basic operating income (Ebit) and net profit jumped more than 15% to reach respectively 1.25 billion and 763 million francs, lists the annual report published on Tuesday.

The comparison basis has been adapted to integrate the adoption of the IFRS 16 accounting standard.

The multinational Rhineland-Valais fulfills the expectations of analysts on almost all levels. The AWP consensus put forward a turnover of 5.89 billion francs, a basic Ebitda of 1.62 billion and a basic Ebitda of 1.24 billion. Shareholder compensation, on the other hand, was planned at 2.82 francs per share.

Management intends to maintain a growth rate of more than 5% over the year started, with a stable operating margin.

Deprived of the managing director since the surprise departure of Mark Funk last November, Lonza promises to find him a successor before the end of the year. The chairman of the board Albert Baehny continues to act as head of the company. (AWP)

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