WASHINGTON (dpa-AFX) - Lonza Group AG (LZAGF.PK), a supplier to the pharmaceutical, healthcare and life-science industries, reported Wednesday that its fiscal 2018 profit dropped 1.1 percent to 659 million Swiss francs from last year's 666 million francs. Earnings per share fell 9.6 percent to 8.77 francs from 9.70 francs last year.
Core profit was 899 million francs, compared to 740 million francs a year ago. Core earnings per share were 11.98 francs, compared to 10.78 francs last year.
Sales climbed 21.9 percent to 5.54 billion francs from 4.55 billion francs last year. On a Pro-Forma basis, including Capsugel's results in the last year, sales grew 9 percent.
Further, the company announced fiscal 2019 outlook and confirmed mid-term 2022 Guidance including the Water Care business unit
For 2019, Lonza expects mid-to-high-single digit sales growth and sustained high core EBITDA margin level.
For the mid-term 2022, the company continues to expect sales of 7.5 billion francs and core EBITDA margin of 30%.
The Water Care transaction is expected to close in Q1 2019. To account for the Water Care disposal, Lonza will provide an adjusted Mid-Term Guidance after transaction closing.
Lonza plans to re-invest parts of the proceeds of the Water Care disposal into the Healthcare Continuum with expected higher returns to deliver more shareholder value.
Separately, Lonza announced the appointment of Marc Funk as the Chief Executive Officer, effective March 1. Funk succeeds Richard Ridinger, CEO, who has decided to retire from the company after seven successful years.
Funk currently is Chief Operating Officer of the Pharma & Biotech division.
Ridinger will remain with the company until the end of April and will then be available to Lonza in an advisory capacity until the end of 2019. Going forward, he intends to build a portfolio of non-executive positions in various companies.
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