Lonza Group Ltd. Reports Consolidated Earnings Results for the Year 2016; Provides Earnings Guidance for the Year 2017
January 25, 2017 at 06:51 am
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Lonza Group Ltd. reported consolidated earnings results for the year 2016. For the year, the company reported sales of CHF 4,132 million, growth of 8.7% compared to CHF 3,803 million a year ago. Result from operating activities (EBIT) was CHF 486 million compared to CHF 428 million a year ago. Profit before income taxes was CHF 373 million compared to CHF 341 million a year ago. Profit for the period, attributable to the equity holders of the parent was CHF 301 million compared to CHF 277 million a year ago. Diluted earnings per share CHF 5.69 compared to CHF 5.26 a year ago. Net cash provided by operating activities CHF 752 million compared to CHF 741 million a year ago. Purchase of property, plant & equipment and intangible assets was CHF 366 million compared to CHF 264 a year ago. EBITDA was CHF 848 million compared to CHF 780 million a year ago. RONOA was 12.7% compared to 10.8% a year ago. Core EBITDA was CHF 918 million compared to CHF 793 million a year ago. Core EBIT was CHF 651 million compared to CHF 524 million a year ago. Operational free cash flow was CHF 408 million compared to CHF 667 million a year ago. Net debt was CHF 1,584 million compared to CHF 1,660 million a year ago. CORE profit for the period was CHF 443 million compared to CHF 356 million a year ago. CORE diluted EPS was CHF 8.38 compared to CHF 6.76 a year ago. CORE RONOA was 21.5% compared to 16.4% a year ago. Operational free cash flow (before acquisitions) was CHF 638 million compared to CHF 693 million a year ago.
For the year 2017, based on the sound foundation laid in 2016 for the future, the company expects sales growth to be in mid-single digits, core EBITDA to be CHF 1 billion, Double-digit core EBIT growth and core RONOA above the 21.5% achieved in 2016. This outlook is based on the present macro-economic environment, current visibility and constant exchange rates for the most important currencies in which the company is trading. The mid-term guidance will be reviewed in the course of 2017.
Lonza Group AG is one of the world leaders of the development, production and marketing of chemical products. Net sales break down by family of products and services as follows:
- bio-pharmaceuticals (55.4%): exclusive syntheses, microbiological fermentation products , mammalian cell cultures, etc.;
- capsules and dosing solutions for biopharmaceuticals, drugs and nutrition products (17.3%). In addition, the group offers nutritional ingredients;
- small molecule drug substances (13.4%);
- technologies and platforms for manufacturing processes and production of cell and gene therapies (10.4%);
- other (3.5%).
Net sales are distributed geographically as follows: Switzerland (17.4%), Europe (31.7%), the United States (31.8%), the Americas (3.2%), Japan (8.1%), Asia (7.5%) and other (0.3%).