In 2024, we delivered sales of CHF 6.6 billion in line with prior year (-0.2% CER and -2.1% AER). A CORE EBITDA of CHF 1.9 billion resulted in a robust margin of 29.0%, driven by high demand for commercial CDMO services and strong operational execution. Adjusted for the COVID-related mRNA business and the related termination impact in 2023, underlying sales grew at around 7% CER.
CORE EBITDA margin decreased by 0.8 ppts in 2024 compared to 2023. This was primarily due to a high base in 2023 from the high-margin COVID-related mRNA business, as well as margin decline in Capsules & Health Ingredients (CHI). Excluding the COVID-related business, we achieved a low single-digit ppt improvement in CORE EBITDA margin, supported by productivity measures, including our network optimization activities initiated in 2023, better asset utilization and more favorable product mix. All three CDMO divisions reported underlying CORE EBITDA margin improvements.
Throughout 2024, we continued our organic investment program to drive future growth across technologies. Throughout the year, we invested CHF 1.4 billion CapEx – equivalent to 22% of sales. Approximately 60% of this was deployed for growth projects, mainly for large Biologics projects, including our commercial Drug Product Services plants in Stein (CH) and our Mammalian and Bioconjugates facilities in Visp (CH).
In 2024, we delivered a strong operational free cash flow (FCF) of CHF 473 million before acquisitions and divestments, mainly driven by lower CapEx compared to prior year. Net working capital (NWC) as a percentage of sales increased due to strong year-end sales, leading to a higher level of receivables and higher inventory following the completion of the Vacaville (US) acquisition in October 2024.
To support the Vacaville acquisition and ongoing growth investments, we secured approximately CHF 2.1 billion in funding through the Eurobond market in 2024. Alongside our ongoing share buyback program, this has increased our leverage to 1.5x, aligned with our target range of 1.5x to 2.0x. This supports our commitment to maintaining a BBB+ investment rating, while our balance sheet continues to provide sufficient headroom for organic growth investments and strategically relevant bolt-on acquisitions.
Chief Financial Officer
By focusing on high value assets and technologies, our strategic investment plan is designed to outpace the market, deliver long-term margin improvement, and generate strong free cash flow. Our disciplined capital allocation framework ensures we balance organic investments, bolt-on M&A and shareholder returns to ensure sustainable value creation for our business, our shareholders, our customers and our people.
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Refer to section “Alternative Performance Measures” of the Financial Report for more details on the calculation methodology.
CORE results for the Full-year 2020 (CORE EBITDA, ROIC, CORE EPS) were restated to reflect the changes from the revised Alternative Performance Measures policy that was introduced on 1 January 2021.
Lonza continuing operations excluding the Speciality Ingredients business that was sold on 1 July 2021.
In 2024, Lonza revised the definitions of several Performance Measures. As a result, the Operational Free Cash Flow and CORE EPS were restated for 2021, 2022 and 2023. Refer to section “Alternative Performance Measures” of the Financial Report for more details on the calculation methodology.
“Net debt”, “Net debt / CORE EBITDA” reflect total group including discontinued operations from 2015 to 2020. For 2021 and 2022, financials were reflected based on Lonza continuing operations basis (excluding Lonza Specialty Ingredients business).
| million CHF | 2015 | 2016 | 20172 | 20183 | 2019 | 2020 | 2021 | 2022 | 2023 | 2024 |
|---|---|---|---|---|---|---|---|---|---|---|
| Sales | 3,803 | 4,132 | 4,548 | 5,542 | 4,207 | 4,508 | 5,409 | 6,223 | 6,717 | 6,574 |
| CORE EBITDA1 | 793 | 918 | 1,196 | 1,511 | 1,334 | 1,3794 | 1,665 | 1,995 | 1,999 | 1,908 |
| Margin in % | 20.9 | 22.2 | 26.5 | 27.3 | 31.7 | 30.6 | 30.8 | 32.1 | 29.8 | 29.0 |
| EBITDA | 780 | 848 | 1,084 | 1,429 | 1,264 | 1,378 | 1,365 | 2,139 | 1,940 | 1,695 |
| Margin in % | 20.5 | 20.5 | 23.8 | 25.8 | 30.0 | 30.6 | 25.2 | 34.4 | 28.9 | 25.8 |
| Result from operating activities (EBIT) | 428 | 486 | 673 | 842 | 825 | 901 | 851 | 1,541 | 880 | 964 |
| Margin in % | 11.3 | 11.8 | 14.8 | 15.2 | 19.6 | 20.0 | 15.7 | 24.8 | 13.1 | 14.7 |
| ROIC in % 1 | n.a. | n.a. | 8.4 | 8.0 | 9.2 | 9.14 | 10.7 | 11.4 | 8.7 | 8.4 |
| CORE EPS (diluted) in CHF | 6.76 | 8.38 | 10.78 | 11.98 | 11.40 | 12.194,7 | 14.337 | 16.287 | 13.887 | 15.01 |
| EPS (diluted) in CHF | 5.26 | 5.69 | 9.70 | 8.77 | 8.68 | 9.77 | 9.05 | 16.34 | 8.88 | 8.92 |
| Operational free cash flow (bef. acquisitions and divestitures) | 693 | 638 | 658 | 884 | 371 | 504 | 4127 | (420)7 | 3747 | 473 |
| Net debt / (net cash) 5 | 1,660 | 1,584 | 3,762 | 3,534 | 2,961 | 2,813 | (958) | (186) | 922 | 2,859 |
| Net debt / CORE EBITDA 5 | 2.1 | 1.7 | 2.7 | 2.3 | 1.8 | 1.7 | (0.6) | (0.1) | 0.5 | 1.5 |
| Number of employees (Full-Time Equivalent) 6 | 9,829 | 10,130 | 14,618 | 15,375 | 15,468 | 14,062 | 16,218 | 17,494 | 18,000 | 18,686 |
Refer to section “Alternative Performance Measures” of the Financial Report for more details on the calculation methodology.
Until 2017, Lonza including the Water Care business. From 2018, Lonza excluding the Water Care business.
Until 2018, Lonza including the Specialty Ingredients business (reported as discontinued operations until effective disposal 1 July 2021). From 2019, Lonza excluding the Specialty Ingredients business.
CORE results for the Full-year 2020 (CORE EBITDA, ROIC, CORE EPS) were restated to reflect the changes from the revised Alternative Performance Measures policy that was introduced on 1 January 2021.
“Net debt”, “Net debt / CORE EBITDA” reflect total group including discontinued operations from 2015 to 2020. For 2021 and 2022, financials were reflected based on Lonza continuing operations basis (excluding Lonza Specialty Ingredients business).
"Number of employees (Full-time Equivalent)" reflect total group (including discontinued operations). From 2020, Lonza Specialty Ingredients business was excluded.
In 2024, Lonza revised the definitions of several Performance Measures. As a result, the Operational Free Cash Flow and CORE EPS were restated for 2021, 2022 and 2023. Refer to section “Alternative Performance Measures” of the Financial Report for more details on the calculation methodology.
