The information excluded Water Care Business taking into consideration additional reporting-related items to enable comparison and inform capital market participants about the upcoming reporting changes prior to our Full-Year 2018 results publication
Lonza has published unaudited Full-Year 2017 information excluding the Water Care business and taking into consideration additional reporting-related items to enable comparison and inform capital market participants about the upcoming reporting changes prior to our Full-Year 2018 results publication.
On November 1, 2018, Lonza announced that it entered into a definitive agreement with Platinum Equity to acquire Lonza’s Water Care business and operations. The agreement is expected to close in the first quarter of 2019, subject to customary closing conditions. Consequently, Water Care will be classified as discontinued operations and as assets held for sale in accordance with IFRS 5, “Non-Current Assets Held for Sale and Discontinued Operations,” in the Full-Year 2018 results, expected to be published on January 30, 2019.
The planned divestment of the Water Care business and its classification as discontinued operations has an impact on Lonza Group and its Specialty Ingredients segment only. The Pharma & Biotech segment is not affected.
On January 1, 2018, the new, comprehensive revenue recognition standard, IFRS 15, “Revenue from Contracts with Customers,” took effect. Lonza has applied the full retrospective methodology in adopting IFRS 15 to enhance comparability.
As a result, Lonza is publishing restated financial results for its Full-Year 2017 results in accordance with IFRS 15. The IFRS 15 adoption only had an impact on Lonza’s Pharma & Biotech segment. Further information has previously been provided in the online Lonza Annual Report 2017 and in the Half-Year Results 2018 report publication.
On January 1, 2018, the specialty ingredients segment began operating in three distinct businesses: a consumer health division, a consumer & resources protection division and a water care business unit. As of November 1, 2018, with the signing of the strategic agreement to divest the Water Care business to Platinum Equity, Water Care is being reported as discontinued operations for all periods presented.
With the publication of the Half-Year 2018 results, Lonza provided sales and CORE EBITDA financial key performance indicators (KPI) for its new reporting structure in specialty ingredients. Historical data for the full-year 2017 is now being disclosed in order to enable comparative analyses. Further information has previously been provided in the Half-Year Results 2018 report.
The following tables summarise the changes mentioned above and provide comparable information for Full-Year 2017 reporting.