Jean-Marc Huet Proposed as New Chairman
The company has now put forward the name of Jean-Marc Huet, the current chairman of Heineken, as the potential new chairman. Huet has an impressive track record, having previously held the position of Chief Financial Officer at consumer goods giant Unilever, drug maker Bristol-Myers Squibb, and specialized nutrition company Royal Numico N.V. If appointed, Huet will take over from Baehny, who has been serving as both Chairman and interim CEO since Pierre-Alain Ruffieux’s departure in September. Baehny will continue as interim CEO until a new CEO assumes the role.
Strong Financial Performance Despite Challenges
Lonza confirmed its core earnings margin target of “high 20s” for the current year, which is in line with market expectations. However, JP Morgan analysts expressed some concerns that Lonza may need to revise this goal. The company achieved a 10.9% increase in sales at constant exchange rates, reaching 6.7 billion Swiss francs ($7.72 billion) last year. This growth was primarily driven by its Biologics and Small Molecules divisions, surpassing the 8.2% growth expected by analysts. Nevertheless, Lonza anticipates flat sales for the current year due to the cancellation of a manufacturing contract with vaccine maker Moderna, citing a lack of demand.
Dividend Proposal and Mid-term Guidance Confirmation
Lonza plans to propose a dividend of 4.00 Swiss francs per share at the upcoming annual general meeting, slightly lower than the 4.15 Swiss francs initially forecasted. Despite anticipating a challenging 2024 with no growth, Lonza reaffirmed its mid-term guidance, which includes a core EBITDA margin target of 32–34%. The company achieved a core EBITDA margin of 29.8% last year, slightly exceeding the 29.2% consensus among analysts in a Vara Research poll.