Record results for Lonza underline gains in personal care
Switzerland-based fine chemicals player Lonza says that it enjoyed a record first quarter, thanks to gains in both business divisions, including successes in cosmetics and personal care.
The non-public company said that the results underlined an expected double-digit CORE EBIT growth for the first six months of the year as the company moves into its second quarter with the same momentum.
Given the positive start to the financial year, the company believes that the momentum will be continued to the year-end, with CORE EBIT growth predicted to continue at a double-digit level.
Specialty Chemicals post ‘strong results’
In particular, company executives flagged up that the company’s Specialty Chemicals division – which includes of an extensive cosmetic and personal care offering under the Consumer Care category – came through with ‘strong results’ on the back of the on-going progress in portfolio management.
The focus on higher-value activities in the Specialty Chemicals division has also helped to boost the results, with the company reporting that vitamin B3 had been in particularly high demand with its beauty customers.
Vitamin B3 has proved increasingly popular in a variety of skin care products, but in particularly is a popular ingredient for anti-ageing and whitening/brightening formulations.
Maintaining the momentum
The company’s other main business division, Pharma & Biotech, also reported similarly strong results to the Specialty Chemicals division. In 2015 the company posted sales growth in reported currency of 4.5%, resulting in total sales of CHF 3.80 billion.
“These record-level results in the first quarter show that the strict market focus of our organization is producing results. The on-going improvement projects that emphasize organic growth, stringent portfolio management and operational excellence are proving to be successful,” said Richard Ridinger, CEO of Lonza.
“We will use this positive start to the year to drive further our transformation initiatives with the goal of further strengthening our position as a leading supplier to the pharmaceutical, biotech and our different specialty ingredients markets.”