Merck met all financial targets in fiscal 2019
Merck met all its financial targets and thus grew profitably in fiscal 2019. At the same time, the company made significant progress in executing its strategic agenda. “We delivered on our promise and achieved growth for all our key performance indicators, namely net sales, EBITDA pre and EPS pre. We are resolutely executing our strategy and strengthening our innovation-driven businesses in all three business sectors. In addition, we are focusing on lowering our debt as planned,” said Stefan Oschmann, Chairman of the Executive Board and CEO of Merck. “We intend to achieve profitable growth in 2020 as well.”
The company’s group strategy centers fully on strong business sectors focused on science and technology. Moreover, in terms of sales and margin growth, Merck is aiming to be a top-tier company in relation to its peers. In 2019, Merck made clear progress in executing its strategic agenda.
Group net sales rose by 8.9 %
At EUR 16.2 billion, group net sales rose in 2019 by 8.9 % in comparison with 2018. Organically, sales grew by 5.3 %. Additionally, there were positive foreign exchange effects of 2.1 % and a portfolio-related increase of 1.4 %. Rising by 15.4 % to EUR 4.4 billion, EBITDA pre, the most important financial indicator to steer operating business, advanced more strongly than sales. The EBITDA pre-margin rose to 27.1 %. The company thus grew profitably in 2019.
The operating result (EBIT) advanced by 22.8 % to EUR 2.1 billion. The -60.9 % decline in group net income to EUR 1.3 billion was attributable to a one-time effect, namely the gain on the sale of the Consumer Health business in the previous year. Net financial debt rose particularly as a result of the acquisition of Versum from EUR 6.7 billion at the end of 2018 to EUR 12.4 billion as of year-end 2019.