Lonza reported continued positive momentum in its core healthcare businesses in the first six months of 2019. This has driven 6.4% sales and 7.7% CORE EBITDA growth for the group, resulting in a CORE EBITDA margin of 27.8%. Based on H1 2019 results, Lonza confirms the Full-Year 2019 outlook of mid-to-high single-digit sales growth and a sustained CORE EBITDA margin.
Half-year performance was driven by Lonza’s Pharma Biotech & Nutrition segment achieving 10.8% sales growth and a 33.2% CORE EBITDA margin in an important investment year.
The Specialty Ingredients segment reported a 3.8% decline in sales in H1 2019. However, the CORE EBITDA margin increased by 20bps to 19%, despite headwinds caused by raw material price increases, supply chain challenges and negative cyclical impacts.
All figures relate to Lonza’s continuing operations (excluding the Water Care business unit) in reported currency and are compared with the same period in 2018 on a like-for-like basis (restated Lonza Half-Year 2018 financial results) to reflect adoption of IFRS 15 on revenue from contracts with customers and realignment of segments). Positive development of CORE EBITDA was also supported by the IFRS 16 accounting adjustment on leases, resulting in 40bps incremental margin for Lonza Group.
Pharma Biotech & Nutrition Segment
Lonza Pharma Biotech & Nutrition achieved double-digit sales growth. The newly formed segment, now including the Consumer Health & Nutrition business (formerly part of Specialty Ingredients), delivered CHF 2.1 billion sales in H1 2019 and a CORE EBITDA of CHF 693 million while investing in strategic growth projects.
Lonza confirmed the expansion of its bioconjugation facilities in Visp (CH), together with the successful commercial approval of a third antibody-drug conjugate (ADC) produced at this site. With eleven investigational new drugs (INDs) completed, and now three out of five commercially available ADCs supported by its bioconjugation facility, Lonza sees the need to further expand based on commitments from customers signed. Many bioconjugates are on expedited programs and the existing expertise at the facility, combined with proximity to clinical and commercial manufacturing of antibody, linkers and payload, will reduce risk and increase speed on the path to market for Lonza customers.
Multivac sets a course for the future
After more than 18 years as CEO of the Multivac Group, Hans-Joachim Boekstegers will hand over the business on 1 January 2020 to his director colleagues, Christian Traumann and Guido Spix, and bow out of the company. Mr Traumann and Mr Spix will manage the company jointly in future.
Hans-Joachim Boekstegers joined the Multivac Group as CEO on 1 April 2001 and has since played a determining role in driving forward the successful development of the company. Mr Boekstegers was responsible in particular for the systematic expansion of the product portfolio and Multivac’s sales and service network. With 85 of its own subsidiaries, Multivac is today one of the leading manufacturers worldwide of packaging and processing solutions. During this time the company’s turnover was more than quadrupled, reaching some 1.1 billion euros at the end of 2018, and the number of employees rose from 1,600 to around 5,900.
With effect from 1 January 2020 Christian Traumann and Guido Spix will take up dual leadership of the Multivac Group. Mr Traumann will assume responsibility for Sales and Finance, while Mr Spix will become responsible for Technology and Production.
Christian Traumann had been Commercial Head of the Multivac Group since the beginning of 2002, before being appointed as Director and CFO for the Group in August 2008. Guido Spix joined the company as Director in March 2009 and has since assumed the position of CTO/COO.
In order to ensure that there is continuity in Multivac’s strategic direction, the course is already being set with an extended planning phase for the transfer of responsibilities to Mr Boekstegers’s successors. Mr Boekstegers will continue until the end of the year to guide Multivac’s destiny as usual, and he will remain on friendly terms with the company after this period.
New gearbox solution
Efficient conveyor belt drive
New State-Of-The-Art Production
SIG announces further Asia-Pacific expansion
As the Asia-Pacific region continues to be one of the major growth engines for aseptic carton packaging, SIG has announced investment in the region with the construction of a second production plant in Suzhou, China.
To meet current and future customer demand, the new 120,000 square meter plant is expected to be operational in early 2021 and will be situated at the Suzhou Industrial Park (SIP), close to the company’s existing production facility and Tech Centre. With a total investment of EUR 180 million, the new plant will ensure exceptional delivery on outstanding opportunities in the Asia-Pacific region, where most countries continue to grow significantly. The plant is expected to achieve world-class environmental, safety and operational performance right from the start.
The new production facility is testament to SIG’s strong partnership with SIP and the local government, as well as its unparalleled commitment to deliver world-class packaging, service and the most modern solutions to the rapidly growing Asian markets and to China in particular. SIG’s recently opened cutting-edge Tech Centre in Suzhou supports customer collaboration in the development and implementation of innovative product concepts and market-ready packaging solutions.
Across Asia, millions of people are only now starting to consume packaged food and beverages. The rise of new consumers, driven by increasing income, changing lifestyles and new consumption habits, represents a huge opportunity for aseptic carton packaging with its long shelf life without the need of a cooling chain.
At the same time, young and growing populations are adopting modern lifestyles in urban areas, with more on-the-go consumption, an increasing awareness of health and wellness, and a growing demand for high-quality nutritional food and beverage products.
“The food and beverage market in Asia has seen continuous growth and is expected to continue on that path. Our new production plant will ensure we continue to excel at bringing new and exciting product and packaging concepts to market, quickly and efficiently. Together with our Tech Centre close by, the new plant is another pivotal moment for SIG in Asia. We will grow our business in the APAC region, but also expedite true beverage and dairy innovation for our customers, so they can quickly adapt to the changing lifestyle needs of Asian consumers.”
Rolf Stangl, CEO at SIG