...November 12, 2024 Lonza Group's half-year results were moderate, with the EBITDA margin expected to be in line with our projections of 28%-29% for full-year 2024. Lonza grew its revenue 1.8% on a constant exchange rate (CER) basis in first-half 2024, amounting to Swiss franc (CHF) 3.1 billion. This was flat with the same period last year and came mainly from the commercial contract development and manufacturing organizations (CDMO) business posting higher volumes. Mitigating this was softer demand in the capsules and health ingredients (CHI) division (with sales down 6.1%) from destocking effect in 2022-2023, and the fading of the Moderna business. Lonza's solid operating model and diversified portfolio led to a reported core EBITDA margin of 29.2% in first-half (from 30% in the same period a year earlier). We view 2024 as a transition year for Lonza, with a normalized base compared with the past two years affected by COVID-19- related products. The group's priority remains the ramp-up...
