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Lonza Group (LONNVX: BBB+): 1H24 Results

HEALTHCARE
  • Shares are strongly up on the results.
  • The earnings are not as strong as the share price move suggests and debt is increasing
  • Revenue was down -0.7% to CHF 3,057m
  • EBITDA -4.1% to CHF 862m
  • Net Debt/Core EBITDA 0.8x
  • Total debt CHF 3,795 vs 2,801 up 35%
  • EBITDA margins of 29.2% ahead of 26.7% expected
  • Guidance is very robust with mid-term (2024-28) expected to see:
  • 12-15% CAGR sales increases
  • 32-34% Core EBITDA Margin from <30% currently
  • Net Debt/Core Ebitda 1.5-2.0x (quite a step up from 0.8x reported currently)

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