By Pierre Bertrand


Lonza on Wednesday reported an increase in 2022 core earnings and sales and said it would launch a share buyback as its result was helped by Covid-related peak in sales.

The Swiss life-sciences company said its full-year core earnings before interest, taxes, depreciation and amortization--which strips out exceptional items-- grew to 1.99 billion Swiss francs ($2.16 billion) compared with CHF1.67 billion in 2021, on sales that grew 15% to CHF6.22 billion.

It achieved CHF1.22 billion in net profit for 2022, compared with the CHF2.94 billion it made in the prior year, which was driven by the sale of its Specialty Ingredients business in July of that year.

The result compares with analysts' average expectations of 2022 core Ebitda at CHF1.95 billion and sales at CHF6.18 billion, according to a company-provided consensus.

Lonza said it would initiate a share buyback program of up to CHF2 billion this year and proposed to raise its dividend by 17% to CHF3.50 per share.

Looking ahead, the company said it is targeting high single-digit sales growth at constant exchange rates in 2023 and a core Ebitda margin of between 30% and 31%.

It also confirmed it's mid-term 2024 guidance to 2024.


Write to Pierre Bertrand at pierre.bertrand@wsj.com


(END) Dow Jones Newswires

01-25-23 0145ET