CHF 1.7 billion CORE EBITDA resulted in a margin of 30.8%
2021 CAPEX reached 24% of sales, supporting long-term plan to deliver attractive margins through de-risked growth investments
Continuing focus on operational excellence and execution of growth projects
Outlook 2022: low to mid-teens CER sales growth and CORE EBITDA margin improvement in line with 2024 Mid-Term Guidance
Mid-Term Guidance 2024 reconfirmed
1 Constant Exchange Rate
Full-Year Report 2021
2021 was a year of transformation, consolidation and growth across Lonza's global network. After completing the divestment of our former Specialty Ingredients business, we focused our assets and attention on our role as a dedicated strategic partner to the pharma, biotech and nutrition markets.
During the year, we have experienced strong and sustained levels of customer demand across our divisions. This has provided opportunities to collaborate with new customers as well as extending relationships with our existing loyal customer base. We have worked to ensure that we meet areas of most pressing demand while continuing to retain balance and stability across our customer portfolio.
These sustained high levels of demand can be addressed by our new assets and facilities, as they begin to come online. In 2021 we focused on executing our existing growth investments by ensuring a smooth and efficient ramp-up
process as well as confirming new growth projects . We have also worked to accelerate global recruitment efforts, ensuring that leading industry talent is engaged
and motivated to join our existing skilled and loyal employee community. Additionally, we focused on continuous improvement and operational excellence across our existing facilities, to improve efficiency, quality and speed of output.
Our strong financial performance in 2021 is the combined result of these endeavors. For the Full-Year 2021, we achieved CHF 5.4 billion in sales, representing 20% CER1 sales growth, and CHF 1.7 billion CORE EBITDA, equating to a 30.8% margin. These positive results were supported by above market sales growth across our divisions. At the business unit level, our Cell & Gene Technologies business hit a positive margin in Q4 2021, in line with forecasts.
As well as achieving a strong performance for the full year, we have also remained clear in our focus on delivering growth to support our long-term success.
We have made strategic investments in areas of sustained customer interest and demand, which allow us to consolidate our global reach and deliver end-to-end solutions across modalities. For instance, we have invested in expanding our Biologics capabilities across clinical development and manufacturing, drug product
and microbial services. We have also invested to expand a number of Capsules & Health Ingredients facilities, meaning that we now have the capacity to deliver around 250 billion capsules per year for our customers.
1 Constant Exchange Rate
Full-Year Report 2021
Our focus on internal investment is supported by a selective approach to bolt-on acquisitions. Our new sites in Lexington (US) and Siena (IT) will support the expansion of our exosomes offering. Exosomes represent an important emerging area of cellular medicine, and these sites will provide an expanded and differentiated offering for our Cell & Gene division.
Alongside our focus on growth and expansion, we have also navigated the business challenges arising from the COVID-19 pandemic. Despite restrictions on movement and interaction, we grew our employee community by more than 2,000 full-time employees (FTEs) in 2021. This growth was delivered by virtual recruitment, on-boarding and training programs, including virtual reality training, which was deployed across our growing operational teams. While we anticipate that delivery and distribution issues will continue in 2022, we expect to continue to manage the impact, as long as conditions remain comparable with the last two years.
We have also continued to make an active contribution to controlling the impact of the COVID-19 pandemic through our collaboration with Moderna.
Since 2020, we have demonstrated our capabilities to deliver the drug substance for Moderna's Spikevax COVID-19 vaccine in record time, facilitated by our Ibex® Solutions concept. In 2021, we expanded our collaboration, installing three additional production lines in Visp (CH) and one new production line at our site in Geleen (NL). Our new line in the Netherlands has already commenced operations, and we expect our three new lines in Switzer- land to come online in Q1 2022.
During 2021, we also focused on driving further progress with our ambitious sustainability agenda. Our CO2 emissions were reduced by 35% with the divestment of our former Specialty Ingredients business. We have also refocused our Environmental, Social and Governance (ESG) KPIs in line with the UN's Sustainable Development Goals. To ensure this commitment is shared across our global network, our ESG targets have been incorporated into our global employee and executive incentive plans since the beginning of 2022.
Finally, I would like to thank our customers and investors for their continuing trust in our business during this year of transformation and progress. I would also like to thank our employees for their unwavering commitment, and welcome our new colleagues to our growing community.
Lonza Group Ltd. published this content on 26 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 January 2022 06:05:01 UTC.