Merck, a leading science and technology company, achieved strong results in the first quarter of 2022. Net sales increased by 12.2% to € 5,198 million compared with the year-earlier quarter. All three business sectors contributed to this growth. The key drivers were the company’s Big 3 businesses – the Process Solutions business of Life Science, new Healthcare products and the Semiconductor Solutions business of Electronics. EBITDA pre, the most important financial indicator used to steer operating business, rose by 7.8% to € 1,629 million. Merck specified the qualitative forecast for fiscal 2022 given in March 2022 and now expects organic sales growth of 6% to 9% and net sales of between € 21.6 billion and € 22.8 billion (2021: € 19.7 billion). For EBITDA pre, Merck expects an organic increase of between 5% and 9% and forecasts EBITDA pre in a range between € 6.6 billion and € 7.1 billion (2021: € 6.1 billion).
“Merck has made a promising start to 2022, with our Big 3 generating strong growth and attractive margins. The outstanding quarter by Life Science demonstrates that our core business is not reliant on Covid-19 to deliver impressive growth. Our new medicines, including Bavencio and Mavenclad, were primarily responsible for growth in Healthcare. Electronics also had a robust quarter, thanks to the excellent performance of Semiconductor Solutions. We are especially pleased that our growth story continues to materialize despite significant market headwinds caused by current geopolitical tensions,” said Belén Garijo, Chair of the Executive Board and and CEO of Merck.
During the first quarter Merck continued to implement its strategic agenda on the path towards becoming the global 21st century science and technology pioneer. In February, the company completed the acquisition of Exelead Inc., USA, (Exelead) a biopharmaceutical contract development and manufacturing organization (CDMO) and is driving its growth further with the new business model for Life Science, which was also announced in February.
Owing to the geopolitical situation, the increase in energy and raw material prices in particular has accelerated. The current forecast reflects the continuation of a correspondingly high price level. Furthermore, subsequent to a renewed outbreak of Covid-19 in China, lockdowns have been imposed in individual provinces. The current forecast is based on the assumption of a short, locally restricted lockdown with imminent relaxations. Owing to the assumptions outlined above as regards economic and geopolitical circumstances, the current forecast is subject to increased uncertainty and volatility.
Merck expects organic sales growth of 6% to 9% in fiscal 2022 (previously strong organic growth), which will be driven by all business sectors, particularly Life Science. Overall, the company forecasts net sales in a range of between € 21.6 billion and € 22.8 billion (2021: € 19.7 billion).
For EBITDA pre in fiscal 2022, Merck expects organic growth of between 5% and 9% (previously strong organic growth). Life Science will be the key growth driver; Healthcare and Electronics will also contribute positively to the organic development. Overall, the company expects EBITDA pre of between € 6.6 billion and € 7.1 billion (2021: € 6.1 billion). The forecast for earnings per share pre is in a range between € 9.60 and € 10.50, based on an underlying tax rate of 23%.
