Specialty Ingredients

Young family in playing in a field (mood picture)

In 2018, the Specialty Ingredients segment operated in:

  • a Consumer Health division
  • a Consumer & Resources Protection division
  • a Water Care business unit

>19,000

customers worldwide

42

manufacturing sites

Serving

60

consumer, healthcare and industrial markets globally

The Consumer Health division addressed the fast-moving consumer goods markets in nutritional ingredients for supplements and functional food, hygiene and personal care. The Consumer & Resources Protection division addressed a wide range of industrial markets, as well as the global agricultural markets. The Water Care business unit offered a broad range of products and solutions for residential and industrial water treatment globally. On 1 November 2018, Lonza announced that it had entered into a definitive agreement with Platinum Equity to sell Lonza’s Water Care business. Therefore, Water Care is being reported as discontinued operations for all periods presented.

Overview Lonza Specialty Ingredients Offerings
Overview Lonza Specialty Ingredients Offerings (graphic)
Specialty Ingredients

million CHF

 

2018

 

Change in %

 

2017
1restated

 

Change in %

 

2017
2pro-forma

 

 

 

 

 

 

 

 

 

 

 

1

Restated to reflect classification of Water Care business as discontinued operations

2

Reported Lonza full-year 2017 financial results include Capsugel full-year 2017 financial results

Sales

 

2,391

 

13.7

 

2,102

 

3.4

 

2,312

 

 

 

 

 

 

 

 

 

 

 

CORE EBITDA

 

528

 

6.7

 

495

 

(5.4)

 

558

CORE EBITDA margin in %

 

22.1

 

 

 

23.5

 

 

 

24.1

 

 

 

 

 

 

 

 

 

 

 

CORE EBIT

 

421

 

5.8

 

398

 

(6.0)

 

448

CORE EBIT margin in %

 

17.6

 

 

 

18.9

 

 

 

19.4

Specialty Ingredients delivered 3.4% organic sales growth and a 22.1% CORE EBITDA margin despite a challenging environment for cyclical categories and some raw material pricing and supply-chain related headwinds in parts of the portfolio. The segment reported CHF 2.4 billion sales for 2018, and CORE EBITDA amounted to CHF 528 million (pro-forma –5.4% versus prior year). CORE EBIT was CHF 421 million (pro-forma –6% versus prior year) and resulted in a CORE EBIT margin of 17.6%.

CORE EBITDA million CHF and CORE EBITDA Margin in %
CORE EBITDA and CORE EBITDA Margin (bar chart)

1 Reported pro-forma full-year 2017 financial results include Capsugel full-year 2017 financial results