Half Year 2025 Lonza Group AG Earnings Call Transcript
Key Points
- Lonza Group Ltd (LZAGF) reported a robust performance in H1 2025, with sales reaching CHF 3.6 billion, translating into a 19% constant currency sales growth compared to 2024.
- The company achieved a core EBITDA margin of 29.6%, reflecting a margin growth of 0.4 percentage points.
- The CDMO business saw a 23.1% constant currency sales growth, leading to a core EBITDA margin slightly above 30%.
- Lonza Group Ltd (LZAGF) upgraded its full-year 2025 guidance for CDMO sales growth to 20-21% and a core EBITDA margin of 30-31%.
- The company successfully transitioned to a new operating model and reporting structure, which went live on April 1, 2025, without any complications.
- The specialized modalities platform experienced a decrease in core EBITDA margin by 6.1 percentage points compared to H1 2024, due to pipeline variability and softer operational performance.
- Group sales in H1 were affected by a negative 2% currency headwind as the Swiss Franc appreciated against the US dollar.
- The company faced higher corporate costs due to various factors such as FX hedging and higher social security and insurance contributions.
- Free cash flow decreased to CHF 0.2 billion in H1, impacted by increased working capital needs and lower cost funding for certain growth projects.
- The capsules and health ingredients (CHI) business is not yet classified as held for sale, as the legal and entity restructuring is still in progress.
Thanks to all our guests for joining the call today. Good afternoon to those of you based in Europe, and good morning to those of you joining from the US. This time last year, I joined the half year results call to briefly introduce myself to you, but I was still very much the new joiner, having commenced my tenure as CEO just a couple of days before.
This call today marks a milestone as I have now completed my 1st year in the role, and it has been a pleasure to meet many of you at our investor update and on our road shows since then.
And I'm looking forward to continuing our dialogue during our scheduled trips in the coming months.
Today also marks a milestone for onelosa as we report on the performance of our newly formed business platforms for the first time.
You will recall that we used to report on 4 divisions even up until the Q1 qualitative update. However, we have now formally transitioned to our 3 new CDO business platforms, integrated biologics, advanced synthesis,
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