Merck KGaA Cuts Outlook for 2023 Sales and Earnings

Merck KGaA, the Germany-based health-care and technology company, announced a reduction in its outlook for the full year due to high inventory levels of customers in its Life Science business and a delayed recovery in the semiconductor materials market. Despite this adjustment, Merck confirmed its mid-term objectives.

In the second quarter, Merck experienced declining earnings and sales, although they came in slightly above expectations. Profit after tax dropped to EUR706 million from EUR870 million, while sales fell to EUR5.30 billion from EUR5.57 billion. Ebitda pre, an important earnings metric for the company, declined to EUR1.55 billion from EUR1.78 billion.

Due to foreign-exchange headwinds and other challenges, Merck revised its 2023 sales guidance to be between EUR20.5 billion and EUR21.9 billion, down from the previous range of EUR21.2 billion to EUR22.7 billion. Additionally, Ebitda pre is now expected to decline up to 9% and fall within the range of EUR5.8 billion to EUR6.4 billion, compared to the previous estimate of between EUR6.1 billion and EUR6.7 billion.

Merck remains focused on addressing these challenges and working towards achieving its objectives.

Written by Cecilia Butini