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Merck boss Garijo is aiming for sales of 20 billion euros

2021-08-05T12:44:30.402Z


After a strong second quarter in 2021, the Darmstadt-based pharmaceutical and life science group Merck is confident that it will increase its sales and profits. Under the new CEO Belen Garijo, the share continues its record hunt.


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Power woman: things are looking up with Merck boss Belen Garijo

Photo: Markus Scholz / dpa

The booming business with products for the manufacture of vaccines and drugs, as well as cancer and fertility drugs, has given Merck a strong growth spurt. The Executive Board is therefore increasing its forecast for the second time in a row. "We had a very strong quarter and we exceeded our own expectations," said CEO Belen Garijo on Thursday. This also applies if one ignores the pandemic-related weakness of the same quarter of the previous year.

For the full year, Garijo, who has headed the group since May 2021, now has the prospect of organic sales growth of twelve to 14 percent to 18.8 to 19.7 billion euros.

The adjusted operating profit (Ebitda) should increase by 21 to 25 percent to 5.6 to six billion euros.

Garijo justified the stronger increase in profit with tightened cost discipline.

Negative currency effects are likely to reduce organic growth by two to four percent in each case.

Merck is aiming for 7.80 to 8.50 euros earnings per share.

Shareholders were pleased.

The Merck share rose by almost 5 percent on Thursday and climbed to EUR 184.

Since the beginning of the year, the share has already gained more than 50 percent and is currently at a record high.

"There is still room for improvement"

In the second quarter, sales revenues rose year-on-year by 18.2 percent to 4.87 billion euros.

Excluding negative currency effects, growth was as much as 23 percent.

The group achieved double-digit growth rates in all three business areas.

The adjusted Ebitda soared by 46.7 percent to 1.58 billion euros.

The bottom line was 747 million euros, more than twice as much profit as a year earlier.

Garijo was more cautious than before for the Healthcare business sector in the coming year: New products in the development pipeline are likely to contribute between 1.6 and 1.8 billion euros in sales in 2022, which is less than previously forecast.

"There is of course room for improvement, if the conditions allow," said the Merck boss.

The outlook for the Life Sciences division is more optimistic, where significant pandemic-related sales are also expected in the coming year.

The Process Solutions business should generate at least 700 million euros in sales, which is more than recently expected.

In the Electronics division, Garijo is counting on the continued strong development of the semiconductor market.

la / reuters

Source: spiegel

All news articles on 2021-08-05

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