Leading science and technology company Merck reported 8.6% increase in sales to euro 17.5 billion in 2020. Organically, sales increased by 6.0%. Portfolio effects lifted sales by 5.3%. This was offset by negative foreign exchange effects of -2.6%. EBITDA pre, the most important financial indicator to steer operating business, rose by 18.6% to € 5.2 billion; the EBITDA pre margin increased to 29.7%.

For Q4 2020, Group sales increased by 5.0% compared to the prior-year quarter. Organically, Group sales grew by 11.0%, driven by all three business sectors. Additionally, there were negative foreign exchange effects of -5.4% and a portfolio effect of -0.6%. EBITDA pre rose by 3.3% to € 1.2 billion, earnings per share pre increased 1.9% to € 1.57.

The key drivers were the business with products and services for pharmaceutical manufacturing from the Life Science business sector, the new medicines Mavenclad and Bavencio approved in recent years as well as the Semiconductor Solutions business.

“The year 2020 was characterized by unprecedented turbulence. Yet despite the circumstances of the pandemic, we resolutely executed our strategy further and achieved truly superb business results,” said Stefan Oschmann, Chairman of the Executive Board and CEO of Merck. “Particularly the past 12 months have once again uniquely proven the performance capability of our differentiated business model comprising three strong business sectors. Our focus on innovation-driven specialty businesses is paying off. Merck is very well positioned for a successful future,” said Oschmann.

Merck is supporting more than 50 vaccine projects. Merck recently announced plans to expand its strategic partnership with BioNTech and to significantly accelerate the supply of urgently needed lipids, which are used to manufacture the Covid-19 vaccine from Pfizer-BioNTech. The company also plans to increase the amounts it supplies towards the end of 2021.

In 2020, Merck moved forward with the implementation of its priorities. “We have resolutely pursued our ambition: Merck is to become the vibrant science and technology company,” said Oschmann.

Healthcare made further progress with its development pipeline and continues to aim for around € 2 billion in sales from new products in 2022.

Merck expects that in fiscal 2021, the Group will deliver strong organic net sales growth, driven mainly by the Healthcare and Life Science business sectors. For Electronics, the company forecasts a solid organic increase.

With regard to exchange rate developments, Merck continues to expect a volatile environment due to political and macroeconomic developments. The company expects negative foreign exchange effects between -2% and -5%. These will result in particular from the development of the U.S. dollar as well as individual growth market currencies.

For fiscal 2021, Merck forecasts organic growth of EBITDA pre in a high single-digit to low teens percentage range – excluding the release of the provision in 2020. The company assumes that organic growth in all three business sectors will contribute to this development.

Merck exceeded its environmental targets for 2020. Excluding the legacy Versum business, the company lowered its greenhouse gas emissions (Scope 1 and 2) by -25% relative to the 2006 baseline. A reduction of -20% was planned. The company cut its water consumption at sites in water-stressed areas by -27% relative to the 2014 baseline; a reduction of -10% had been planned. With respect to waste disposal and the Merck Waste Score, Merck believes that it is well on track to meeting its target of lowering this key waste management indicator by -5% by 2025. At the end of 2020, Merck had achieved a reduction of -4.6%.