Lonza Group (LZAGF.PK), a Swiss manufacturer specializing in pharmaceuticals and nutrition, announced strong first-quarter 2025 performance across all business segments, aligning with expectations for full-year results.
Lonza confirmed its Outlook 2025 for the CDMO business of CER sales growth approaching 20% and CORE EBITDA margin approaching 30%. Excluding Vacaville, which is expected to contribute around CHF 0.5 billion in sales at lower profitability, Lonza expects low-teens organic CER sales growth and margin improvement in its CDMO business.
Lonza expects the Capsules & Health Ingredients or CHI business to return to low-to-mid-single-digit CER sales growth in 2025 with an improving CORE EBITDA margin in the mid-twenties and sees the business on track to get back to its historical growth and margin patterns in line with the Mid-Term Guidance.
Lonza said it does not anticipate a material financial impact from potential tariffs on its products and services sold or raw materials purchased for own manufacturing, including in the event that tariffs are implemented on pharmaceuticals. However, Lonza continues to monitor the situation closely. In the current uncertain geopolitical and macroeconomic environment, Lonza's global footprint - which includes a strong presence in the US - will enable the company to support its customers in reducing the potential impact of the recently announced trade policies if needed.
Lonza now anticipates the start of operations at its new commercial-scale aseptic drug product facility in Stein (CH) in 2027, following an updated timeline for the later delivery of critical equipment.
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