Swiss pharma firm Lonza posts lower half-year profit (updated)

Sartorius AG

25/07/2024 06:38

(Adds context on pharmaceutical supplies destocking in
paragraphs 2-3, adds forecast in paragraph 6)
       July 25 (Reuters) - Swiss contract drug manufacturer
Lonza  LONN.S  reported a decline in its half-year profit on
Thursday, hurt by lacklustre demand in its capsules and health
ingredients businesses, but still beat market expectations.
    Lonza reported adjusted core earnings before interest,
taxes, depreciation and amortization (EBITDA) of 893 million
Swiss francs ($976.4 million) for the first half of the year,
down from 922 million Swiss francs a year earlier. 
        Analysts in a company-provided consensus, compiled by
Vara Research, had forecast EBITDA of 802 million Swiss francs.
  
    Demand for pharmaceutical supplies, such as hard capsules
for pills, and lab equipment fell from peaks reached during the
pandemic, weighing on Lonza's sales.     
    Last week, its German peer Sartorius  SATG.DE  cut its
annual profit margin forecast, citing lower demand for lab
equipment during the second-half of the year.
    Lonza retained its mid-term forecast for core EBITDA margin
of 27%-29%.

($1 = 0.8828 Swiss francs)

 (Reporting by Isabel Demetz and Andrey Sychev; Editing by Sonia
Cheema)
 ((Isabel.Demetz@thomsonreuters.com;))