Financial Highlights 2016
Throughout 2016 Lonza continued to deliver record financial results with outstanding improvements across all key performance indicators, leading to the best-ever full-year results in the company’s history. The strong sales growth and high margin improvement are the result of the diligent and disciplined application of the company’s successful strategy.
Compared with the same period in 2015, Lonza recorded strong sales growth of 8.7% (8.2% in constant exchange rates) to CHF 4.13 billion and record-high CORE EBIT growth of 24.2% to CHF 651 million in reported currency.
The outstanding improvements were particularly driven by commercial excellence and strong operational execution in the Pharma&Biotech segment.
CORE RONOA substantially improved to 21.5%, compared with 16.4% last year. The operational free cash flow before acquisitions was strong with CHF 638 million, even after significantly increased capital expenditure. Operational free cash flow after acquisitions was below last year with CHF 408 million (CHF 667 million in 2015), mainly due to the purchase of InterHealth Nutraceuticals (USA). Nevertheless, net debt reduction was on track, reaching CHF 1.58 billion (CHF 1.66 billion in 2015).
Key Figures Lonza
|Million CHF||2016||Change in %||2015|
Financial Summary 2016
- Sales grew 8.7% in reported currency (8.2% in constant exchange rates), rising to CHF 4.13 billion
- CORE EBITDA grew 15.8% in reported currency (15.4% in constant exchange rates), reaching CHF 918 million
- CORE EBIT experienced remarkable growth of 24.2% in reported currency (23.7% in constant exchange rates), increasing to CHF 651 million
- CORE RONOA also improved significantly to 21.5% (16.4% in 2015)
- Debt reduction remained on track with solid cash generation, resulting in a net debt/EBITDA of 1.73x, despite the InterHealth Nutraceuticals acquisition
Lonza continued our efforts to restructure our portfolio in order to further accelerate its operational performance in the future. As part of these efforts, Lonza decided to divest the peptide facility in Braine (BE) and restructure some other smaller operations, which led to combined impairments and restructuring costs of CHF 82 million.
Sales Progression (in million CHF)
CORE EBITDA and CORE EBIT (in million CHF)
Capital Expenditures (in million CHF)
Net Debt (in million CHF)