In the first quarter 2013, Lonza’s business performance was solid and in line with expectations, according to the company. While the specialty ingredients market segment showed a good performance, the pharma and biotech market segment had a slow start as anticipated.
Also, performance for 2013 will be geared towards a stronger second half-year 2013, according to company executives. Lonza reiterated its 2013 EBIT guidance growth of approximately 10%.
Richard Ridinger, CEO of Lonza, said, “Earlier this year, we announced significant changes to our organization; aligning ourselves directly with markets we serve. I am pleased to report the newly focused organization is taking hold while delivering on our first quarter results. At the same time, we are working broadly to assess the performance and efficiencies across of our operations as well as administrative functions and we are making good progress; I am pleased with the results so far. Our first quarter results are in line with the expectations we have set out.“
The specialty ingredients market segment had a good start into 2013 with decent overall market demand in most areas. All growth projects are on track, according to company executives. The personal care market experienced good overall market demand. Preservative and specialty ingredients sales are tracking slightly ahead of target.
According to the CEO, “We introduced new and innovative products for anti-aging, anti-acne active and a natural preservative providing a broad spectrum antimicrobial effect in cosmetic products along with fragrance enhancement.”
In hygiene, there was solid performance in primary markets (Europe and US) and sales were in line with budget and with improved margins. In response to the Influenza virus Type A, Lonza is able to offer a wide range of disinfectant grade products effective against these types of viruses. There is also increasing interest for Lonza’s disinfecting wipes against hospital-acquired infections.
Finally, nutrition ingredients experienced good overall market demand, the company said.