Merck, the German pharmaceutical company, reported last week in a press release that it posted net sales of 10.595 billion euros in the first six months of the year. This represents a decrease of about 1.6% compared to the same period last year. However, the pharmaceutical company has highlighted its ability to overcome the obstacles in 2023 caused by rising prices and global uncertainty and instability.
According to the document issued by the company, profit after tax amounted to 1,506 million euros, 14.1% less than the previous year. The pharmaceutical company is adjusting its net sales projections for this period, now forecasting a range from a 2% decrease to a 2% increase. This contrasts with its previous projections, which covered a growth range of 1% to 4%. Based on this new estimate, sales would be in the range of 20.5 to 21.9 billion euros.
As for EBITDA, the company has modified its expectations, now anticipating a decline of between 3% and 9% for the year. With this new forecast, EBITDA would be around €6.4 billion. Comparatively, in its previous projections, the result was expected to range from a decline of 5% to a stable value.
Up to June, the company's EBITDA totalled 2.942 billion euros, a decrease of 11.2% compared to the same period last year.
The company maintains its medium-term target of reaching 25 billion euros in sales by 2025. The updated outlook for the fiscal year 2023 includes:
- Organic sales development range between -2% and +2%, with total sales between EUR 20.5 billion and EUR 21.9 billion.
- Organic sales growth excluding Covid-19 related business projected in the range of +1% to +5%.
- Organic EBITDA decline in the range of -9% to -3%, totalling between EUR 5.8 and 6.4 billion.
- Negative exchange rate effects are expected to impact both revenues and EBITDA pre, ranging from -6% to -3%.
- The expected range for pre earnings per share (EPS) is between EUR 8.25 and EUR 9.35, based on an underlying tax rate of 22%.