Merck KGaA expects to reach 2014 profit goals early
German drugmaker Merck KGaA has announced it expects to meet its 2014 sales and earnings goals a year early, after unveiling a massive 19% profit increase in the first quarter.
The average expectation for the first quarter of 2013, according to a Reuters poll, was €787 million – the real figure totalled at €801 million.
In the first quarter of 2013, Merck Serono (for a full explanation of Merck KGaA and its four divisions, of which Merck Serono is one, see “A history of Merck KGaA“) maintained the strong momentum of its previous quarters with a total revenue increase of 3.5%. Europe accounted for the highest proportion of this sales increase, followed by the emerging markets.
Sales of the company’s best-selling product, the multiple sclerosis injection Rebif (interferon beta-1a), grew by 6% to €454 million, largely attributed by price increases in the United States and more sales in Europe. Sales of the targeted cancer treatment Erbitux rose 6.6% organically in the quarter to €222 million.
The Consumer Health division reported sales of €116 million, an increase of nearly 8%. This was mainly attributed by sales in Europe that benefited in particular from a good development of cough & cold treatments as a result of the unusually long winter.
“Merck got off to a solid and profitable start in 2013 with all four divisions contributing to our organic sales growth. In addition, we are making excellent progress on our ‘Fit for 2018’ program. This can clearly be seen in the 19% increase in EBITDA pre one-time items. In fact, we expect that by the end of the year, EBITDA pre should exceed €3 billion.”
Karl-Ludwig Kley, Chairman of the Executive Board of Merck.
Merck KGaA to Reach 2014 Outlook One Yr Early, 1Q Profit Up (Wall Street Journal)
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