Lonza says it's on track to hit 2019 target, despite 1st-half loss

Swiss pharmaceutical and biotech ingredient supplier Lonza’s (VTX: LONN) first-half 2019 profit plunged as it took losses linked to the sale of its water business, but the company said it was on track to achieve full-year targets.

Lonza posted 300 million Swiss francs ($304.14 million) in net income. First-half sales rose 6.4% to 2.98 billion francs, while core earnings before interest, taxes, depreciation and amortization (ERBITDA) rose 7.7% to 828 million francs, resulting in a Core EBITDA margin of 27.8%. The company’s shares were up 1.39% at 349.00 francs by late morning.

Based on first-half 2019 results, Lonza confirms the full-year 2019 outlook of mid-to-high single-digit sales growth and a sustained core EBITDA margin.