In H1 2021, Lonza has continued its strong performance with 14.7% sales growth with sales of CHF 2.5 billion and CORE EBITDA margin was 33.3% despite headwinds arising from COVID-19.

This strong momentum has been delivered despite the headwinds arising from the COVID-19 pandemic, including impacts to the ramp-up of new assets and the wider manufacturing schedule. Despite these challenges, Lonza has achieved its commitment to deliver for customers throughout the pandemic by expanding production and increasing headcount.

Throughout H1 2021, Lonza has placed a strategic focus on expanding end-to-end solutions across modalities, which is reflected in the incremental investments announced. In H1, Lonza has invested a total of CHF 474 million CAPEX. Investments supporting growth contributed to around 80% of the total amount.

Lonza anticipates that the current levels of CAPEX spending on internal growth initiatives will continue to increase over the course of H2. Total CAPEX for Full-Year is anticipated to reach around 25% of sales.

The company’s growth plans are supported by the additional free cash flows arising from the Specialty Ingredients divestment, which was completed on 1 July 2021. The majority of proceeds will be invested in internal growth projects over the course of 2021 and beyond.

Lonza confirms an upward revision to its 2021 Outlook, reflecting the expectation to achieve mid-teens CER sales growth. The company also anticipates a CORE EBITDA margin improvement in line with the Mid-Term Guidance trajectory, as guided at the beginning of the year.

The 2021 Outlook assumes a similar level of COVID-related impacts, no significant adverse impact on demand and no further disruptions in supply chain or business operations.

Pierre-Alain Ruffieux, CEO, Lonza said, “We are pleased to have maintained a strong performance in H1 2021, despite the headwinds arising from the on-going COVID-19 pandemic. These results are a testament to the remarkable commitment and determination of our global employee community."

“We are pleased to confirm an upward revision to our anticipated sales growth in our 2021 Outlook as we continue to accelerate our growth momentum,” added Ruffieux.