Lonza Unveils "One Lonza" Strategy and New Structure

Lonza Group AG has outlined its "One Lonza" strategy and a new organizational structure in its Investor Update 2024. The company aims to focus on its core Contract Development and Manufacturing Organization (CDMO) business, planning to exit the Capsules & Health Ingredients (CHI) sector at a beneficial time. The restructuring will involve three new platforms: Integrated Biologics, Advanced Synthesis, and Specialized Modalities.

The revised structure intends to optimize customer experience and boost growth scalability, removing business unit layers for a streamlined management system. For 2024, Lonza forecasts flat sales at constant exchange rates (CER) and a CORE EBITDA margin between 27-29%. For 2025, excluding CHI, it anticipates nearly 20% sales growth in CER, with the Vacaville site projected to add half a billion CHF in sales.

The new structure, expected to commence in Q2 2025, aims to capture growth opportunities and uphold long-term customer relationships. Lonza remains committed to maintaining or increasing dividends annually.