20th October 2021
Daniel Pfund, Senior Financial Analyst
At its analyst day, Lonza’s CEO announced that he expects strong growth in all divisions through 2024. In numerical terms, the company expects sales growth of around 15% per year, and an adjusted EBITDA margin of around 33%-35%, as well as a double-digit return on investment.
In the short term, the company will continue to invest over-proportionately, with capital expenditures in the range of 25% of sales. The level of spending is expected to remain high for the next few years, before declining to around 15% by 2025.
All these forecasts are based on faster growth than the market. Lonza hopes to continue to gain market share in the pharmaceutical supply industry. The company’s main asset is its financial strength and large size, which often makes it the partner of choice.