It looks as if lucky Lonza has been able to mitigate the higher raw material prices – at first sight. The 20bp lower profitability looks more like a timing effect than a larger issue. However, it could become the latter in H2, if higher input costs can not be passed on. In H1, the company benefited from a large cancellation fee of ~3% of group sales), which was not seen as a one-off. Sure! This upset our investment case and our estimates were beaten by +4.7% (sales) and +12.3% (EBITDA).