Merck generated strong net sales growth in the second quarter of 2019, primarily on an organic basis.
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EBITDA pre grew very strongly and was also driven organic performance.
Merck confirmed its full-year forecast for 2019.
In the second quarter, Merck generated net sales growth of 6.9% to € 4.0 billion (Q2 2018: € 3.7 billion).
Organic sales growth amounted to 5.6%.
Merck grew organically in all regions, with especially strong growth in Asia-Pacific, its largest reporting region.
Sales also increased due to slightly positive exchange rate effects of 1.5%, which were primarily due to the U.S. dollar and the Japanese yen, as well as a slightly negative portfolio effect of -0.2%.
EBITDA pre, the Group’s most important earnings indicator, rose sharply 23.8% to € 1.1 billion in the second quarter (Q2 2018: € 920 million).
The increase primarily stemmed from organic growth of 20.3% and was driven the milestone payments in Healthcare and the very good performance in Life Science.
It was supported positive exchange rate effects of 3.3% and slight portfolio effects of 0.3%.
Accordingly, Group EBIT also grew very strongly, increasing 57.6% to € 618 million (Q2 2018: € 392 million).
Net income of Merck thus soared in the second quarter 90.8% to € 471 million (Q2 2018: € 247 million).
Earnings per share increased to € 1.08 (Q2 2018: € 0.57).
Earnings per share pre climbed 25.2% to € 1.54 (Q2 2018: € 1.23).
Net financial debt of Merck as of June 30 increased € 1.1 billion over December 31, 2018 to € 7.8 billion (Dec. 31, 2018: € 6.7 billion).
The main reasons for this included the first-time application of the new accounting standard IFRS 16 as well as dividend payments.
Merck had 53,051 employees worldwide on June 30, 2019, compared with 54,009 on June 30, 2018.
The decrease is primarily attributable to the divestment of the Consumer Health business, which closed in December 2018.
In the first six months of 2019, net sales of the Merck Group rose 7.2% to € 7.7 billion (January-June 2018: € 7.2 billion).
This positive sales development was mainly due to the organic sales increase of 5.7%, to which all three business sectors contributed.
EBITDA pre rose 9.6% to € 2.1 billion in the first six months of 2019 (January-June 2018: € 1.9 billion).
At 8.9%, organic performance was also a main driver of the increase.
The EBITDA pre margin increased slightly to 26.8% (January-June 2018: 26.2%).
Earnings per share pre for the first half rose 4.3% to € 2.67 (January-June 2018: € 2.56). ■