Lonza Achieves Strong Financial Results in 2023 Amid Leadership Transition
Share this article
The Swiss CDMO announces robust sales of CHF 6.7 billion, delivering 10.9%1 CER sales growth, and the nomination of Jean-Marc Huët to succeed Albert M. Baehny as chairman of the company.
Lonza, a leading CDMO (Contract Development and Manufacturing Organization), has reported robust financial results for the year 2023. The company achieved sales of CHF 6.7 billion, reflecting sales growth of 7.9% AER (10.9% CER). The CORE EBITDA reached CHF 2 billion, with a margin of 29.8%. This solid performance was primarily driven by the Biologics and Small Molecules divisions, while the Cell & Gene and Capsules & Health Ingredients divisions showed softer results.
Albert M. Baehny, Chairman of the Board of Directors and CEO ad interim, expressed satisfaction with Lonza’s performance, attributing it to strong business fundamentals and the company’s ability to capture value in the CDMO market. Despite macroeconomic challenges, Lonza witnessed high demand for its offerings, maintaining a healthy balance sheet supported by solid free cash flow.
Strategic Growth and Investments
Lonza continued its growth momentum by extending its customer portfolio, securing approximately 130 new CDMO customers and signing around 350 new programs in 2023. The company invested CHF 1.7 billion (25% of sales) in CAPEX to support future growth, announcing new projects, including an antibody-drug conjugate (ADC) commercial filling line in Stein (CH) and a Bioconjugates capacity increase project in Visp (CH).
ESG Commitments
In alignment with its ESG commitments, Lonza made progress in 2023, unveiling a climate plan to cut Scope 1 and 2 emissions by over 40% by the end of 2030. The company signed major Power Purchase Agreements (PPAs) to achieve its goal of sourcing all electricity from renewable sources by 2025. Lonza’s dedication to environmental sustainability is reflected in its commitment to decarbonize Scope 2 electricity emissions across Switzerland, the European Union, and China.
Leadership Transition
After seven years on the Board and six years as Chairman, Albert Baehny will not stand for re-election at the upcoming Annual General Meeting in May 2024. The Board acknowledges Baehny’s instrumental role, and to ensure continuity, Jean-Marc Huët is proposed as the new Chairman. Albert Baehny will remain CEO ad interim until the new CEO commences their tenure. Baehny led Lonza through transformative changes, positioning it as a global healthcare manufacturing giant.
This transition follows Lonza’s significant contributions to combating the COVID-19 pandemic and its evolution into a key player in healthcare manufacturing, serving pharmaceutical, biotech, and nutrition markets under Albert Baehny’s leadership.
About Lonza
Lonza is one of the world’s largest healthcare manufacturing organizations. Working across five continents, our global community of around 18,000 colleagues helps pharmaceutical, biotech and nutrition companies to bring their treatments to market. About 5,500 people are working for Lonza in Visp, Canton of Valais, Switzerland. The company is expecting to hire about 500 more people for various manufacturing projects.
Source: Lonza Press Release