08.06.15
Merck announced renewed strong sales growth, amounting to 14.4% in the second quarter of 2015. EBITDA pre exceptionals also rose by 6.3%. Merck thus continued on its growth course in the first half of 2015.
“All three business sectors contributed to our good double-digit sales growth. Foreign exchange movements did help us, yet our businesses grew even without these additional tailwinds,” said Karl-Ludwig Kley, chairman of the Executive Board of Merck. “We confirm our forecast for the full year 2015.”
Group net sales increased by 14.4% to €3.2 billion in the second quarter of 2015 (Q2 2014: €2.8 billion). Sales grew organically by 2.2%. Significantly positive currency effects of 10.2% and portfolio effects due to the integration of AZ Electronic Materials (AZ) amounting to 1.9% also contributed to growth. From a geographic perspective, the Asia-Pacific, Latin America, and Middle East and Africa regions fueled organic sales growth.
Driven by good operational performance and a favorable currency environment, EBITDA pre exceptionals, the key earnings indicator of the Merck Group, rose by 6.3% to €899 million (Q2 2014: € 846 million). Higher research and development spending, mainly relating to the intensification of research in the Healthcare business sector, dampened EBITDA pre exceptionals. The absence of royalty and license income included in the previous year also had a negative impact on EBITDA pre exceptionals. Group EBIT increased 13.7% to €501 million (Q2 2014: €441 million). Net income rose in the second quarter by 13.2% to €343 million (Q2 2014: € 303 million).
Earnings per share pre exceptionals rose in the second quarter of 2015 by 12.1% to €1.30 (Q2 2014: €1.16).
In the course of the second quarter of 2015, Merck built up a net cash position amounting to €567 million on June 30. However, net financial debt is expected to soon increase significantly as a result of the planned acquisition of Sigma-Aldrich. Merck had 40,192 employees worldwide on June 30, 2015.
In the first half of 2015, net sales of the Merck Group increased by 15.0% to €6.3 billion (Jan.-June 2014: €5.4 billion). Foreign exchange movements led to a sales increase of 9.6% or €523 million. All business sectors contributed to organic sales growth, which amounted to 1.8% in the first half of 2015. The acquisition of AZ also had a positive impact of 3.6% on sales.
In the first half of 2015, EBITDA pre exceptionals of the Merck Group totaled €1.8 billion (Jan.-June 2014: €1.7 billion), thus exceeding the previous year’s figure by €100 million or 6.0%. Earnings per share pre exceptionals climbed by 4.7% to €2.43 in the first half of 2015 (Jan.-June 2014: €2.32).
The Healthcare business sector generated organic sales growth of 1.5% in the second quarter of 2015. Including positive foreign exchange effects of 7.8%, net sales rose overall by 9.2% to €1.8 billion (Q2 2014: €1.7 billion).
In the second quarter of 2015, the Life Science business sector posted strong organic sales growth of 6.2%, which was mainly driven by continued demand from the biopharmaceutical industry for Merck products. Sales developed particularly well in North America. In addition, the strong increase in sales was boosted by significantly positive currency effects of 11.2%. Consequently, Life Science net sales increased overall by 17.3% to €773 million (Q2 2014: €659 million) – a record quarter for the business sector.
In the second quarter of 2015, net sales of the Performance Materials business sector soared by 27.2% to €643 million (Q2 2014: € 506 million). Acquisition-related increases resulting from the purchase of AZ Electronic Materials in May 2014 caused net sales to rise by 10.7% while significantly positive exchange rate effects of 16.8% also fueled growth. Organic sales performance was flat (-0.4%).
In the newly formed Display Materials business unit consisting of Merck’s successful liquid crystals business and the complementary AZ display materials, the sales growth of innovative liquid crystal mixtures such as UB-FFS could not compensate for declining sales of the oldest active-matrix liquid crystal technology TN-TFT.
In the second quarter of 2015, the Pigments & Functional Materials business unit reported a moderate organic sales decline. Sales by the Integrated Circuit (IC) Materials business unit, which consists of the former AZ business with materials used to manufacture integrated circuits, reflected an acquisition-related increase in the second quarter of 2015. Organic growth was also achieved, mainly driven by the business with dielectric materials for chip manufacture. Thanks to higher demand for OLED displays and LED phosphors, the Advanced Technologies business unit also generated organic growth. Merck recently laid the cornerstone for the new OLED materials production unit in June 2015.
Merck confirms its forecast for the full year 2015 at Group level. The forecast for the course of business in 2015 is initially being presented without taking the Sigma-Aldrich acquisition into account. For 2015, the Merck Group continues to expect slight organic sales growth and a slight portfolio effect due to the inclusion of AZ for a full fiscal year. This development will be bolstered by a positive currency effect of 5% to 7%.
Overall, Merck continues to assume an increase in net sales to between €12.3 billion and €12.5 billion for 2015. Moreover, Merck anticipates EBITDA pre exceptionals of between €3.45 billion and €3.55 billion for 2015. Earnings per share pre exceptionals are expected to be between €4.60 and €4.80 in 2015.
“All three business sectors contributed to our good double-digit sales growth. Foreign exchange movements did help us, yet our businesses grew even without these additional tailwinds,” said Karl-Ludwig Kley, chairman of the Executive Board of Merck. “We confirm our forecast for the full year 2015.”
Group net sales increased by 14.4% to €3.2 billion in the second quarter of 2015 (Q2 2014: €2.8 billion). Sales grew organically by 2.2%. Significantly positive currency effects of 10.2% and portfolio effects due to the integration of AZ Electronic Materials (AZ) amounting to 1.9% also contributed to growth. From a geographic perspective, the Asia-Pacific, Latin America, and Middle East and Africa regions fueled organic sales growth.
Driven by good operational performance and a favorable currency environment, EBITDA pre exceptionals, the key earnings indicator of the Merck Group, rose by 6.3% to €899 million (Q2 2014: € 846 million). Higher research and development spending, mainly relating to the intensification of research in the Healthcare business sector, dampened EBITDA pre exceptionals. The absence of royalty and license income included in the previous year also had a negative impact on EBITDA pre exceptionals. Group EBIT increased 13.7% to €501 million (Q2 2014: €441 million). Net income rose in the second quarter by 13.2% to €343 million (Q2 2014: € 303 million).
Earnings per share pre exceptionals rose in the second quarter of 2015 by 12.1% to €1.30 (Q2 2014: €1.16).
In the course of the second quarter of 2015, Merck built up a net cash position amounting to €567 million on June 30. However, net financial debt is expected to soon increase significantly as a result of the planned acquisition of Sigma-Aldrich. Merck had 40,192 employees worldwide on June 30, 2015.
In the first half of 2015, net sales of the Merck Group increased by 15.0% to €6.3 billion (Jan.-June 2014: €5.4 billion). Foreign exchange movements led to a sales increase of 9.6% or €523 million. All business sectors contributed to organic sales growth, which amounted to 1.8% in the first half of 2015. The acquisition of AZ also had a positive impact of 3.6% on sales.
In the first half of 2015, EBITDA pre exceptionals of the Merck Group totaled €1.8 billion (Jan.-June 2014: €1.7 billion), thus exceeding the previous year’s figure by €100 million or 6.0%. Earnings per share pre exceptionals climbed by 4.7% to €2.43 in the first half of 2015 (Jan.-June 2014: €2.32).
The Healthcare business sector generated organic sales growth of 1.5% in the second quarter of 2015. Including positive foreign exchange effects of 7.8%, net sales rose overall by 9.2% to €1.8 billion (Q2 2014: €1.7 billion).
In the second quarter of 2015, the Life Science business sector posted strong organic sales growth of 6.2%, which was mainly driven by continued demand from the biopharmaceutical industry for Merck products. Sales developed particularly well in North America. In addition, the strong increase in sales was boosted by significantly positive currency effects of 11.2%. Consequently, Life Science net sales increased overall by 17.3% to €773 million (Q2 2014: €659 million) – a record quarter for the business sector.
In the second quarter of 2015, net sales of the Performance Materials business sector soared by 27.2% to €643 million (Q2 2014: € 506 million). Acquisition-related increases resulting from the purchase of AZ Electronic Materials in May 2014 caused net sales to rise by 10.7% while significantly positive exchange rate effects of 16.8% also fueled growth. Organic sales performance was flat (-0.4%).
In the newly formed Display Materials business unit consisting of Merck’s successful liquid crystals business and the complementary AZ display materials, the sales growth of innovative liquid crystal mixtures such as UB-FFS could not compensate for declining sales of the oldest active-matrix liquid crystal technology TN-TFT.
In the second quarter of 2015, the Pigments & Functional Materials business unit reported a moderate organic sales decline. Sales by the Integrated Circuit (IC) Materials business unit, which consists of the former AZ business with materials used to manufacture integrated circuits, reflected an acquisition-related increase in the second quarter of 2015. Organic growth was also achieved, mainly driven by the business with dielectric materials for chip manufacture. Thanks to higher demand for OLED displays and LED phosphors, the Advanced Technologies business unit also generated organic growth. Merck recently laid the cornerstone for the new OLED materials production unit in June 2015.
Merck confirms its forecast for the full year 2015 at Group level. The forecast for the course of business in 2015 is initially being presented without taking the Sigma-Aldrich acquisition into account. For 2015, the Merck Group continues to expect slight organic sales growth and a slight portfolio effect due to the inclusion of AZ for a full fiscal year. This development will be bolstered by a positive currency effect of 5% to 7%.
Overall, Merck continues to assume an increase in net sales to between €12.3 billion and €12.5 billion for 2015. Moreover, Merck anticipates EBITDA pre exceptionals of between €3.45 billion and €3.55 billion for 2015. Earnings per share pre exceptionals are expected to be between €4.60 and €4.80 in 2015.