Lonza Upgrades Organic Growth Model And Mid-Term Financial Ambitions At Capital Markets Day

Oct 14 (Reuters) - LONZA GROUP AG LONN.S:

• UPGRADES ORGANIC GROWTH MODEL AND MID-TERM FINANCIAL AMBITIONS AT CAPITAL MARKETS DAY; Q3 2026 IN LINE WITH EXPECTATIONS

• MODEL TARGETS 10-13% ORGANIC CER SALES GROWTH AND CORE EBITDA MARGIN IN HIGH THIRTIES MID-TERM

• CONFIRMS UPGRADED FULL-YEAR 2026 OUTLOOK

• EXPECTS NEGATIVE FX IMPACT OF 2% TO 3% ON 2026 SALES GROWTH

• EXPECTS MID-SINGLE-DIGIT CER SALES GROWTH AND CORE EBITDA MARGIN EXPANSION IN CAPSULES & HEALTH INGREDIENTS FOR 2026

• REITERATES FULL-YEAR 2026 OUTLOOK OF 11–12% CER SALES GROWTH AND CORE EBITDA MARGIN OF 33–34%

• LONZA UPGRADES ITS ORGANIC GROWTH MODEL OF LOW-TEENS ORGANIC CER SALES GROWTH ON AVERAGE OVER TIME WITH AN ACCELERATION OF CORE EBITDA MARGIN EXPANSION, NOW REACHING HIGH THIRTIES IN MID-TERM

• IT ALSO EXPANDS MODEL TO INCLUDE A MID-TERM ROIC AMBITION OF TWO TO THREE TIMES TODAY'S WACC AND AN IMPROVING FCF CONVERSION ON AVERAGE OVER TIME, REFLECTING ITS DISCIPLINED INVESTMENT APPROACH AND OVERALL GREATER CAPITAL EFFICIENCY

• UNCHANGED, ORGANIC CAPEX IS EXPECTED TO FLUCTUATE AROUND MID-TO-HIGH TEENS PERCENTAGE OF SALES, WHILE LONZA REMAINS COMMITTED TO A PROGRESSIVE DIVIDEND DISTRIBUTION, ALL IN LINE WITH ITS CAPITAL ALLOCATION FRAMEWORK FIRST SHARED IN 2024

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