In This Article:
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Organic Group Revenue Growth: 3% increase.
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EBITDA Pre: Increased by 6% to EUR 1.535 billion.
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Net Sales: Increased by 3.1% to EUR 5.208 billion.
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EPS Pre: Increased by 2.9% to EUR 2.12 per share.
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Operating Cash Flow: Decreased by EUR 556 million.
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Net Financial Debt: Decreased slightly compared to end of December last year.
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Healthcare Organic Sales Growth: 3.4% increase.
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Life Science Organic Sales Growth: 2.5% increase.
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Electronics Organic Sales Growth: 0.6% increase.
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Process Solutions Growth: 11% increase.
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EBIT: Increased by 8% year on year.
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Effective Tax Rate: 22.8%.
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Reported EPS: EUR 1.69, a 5.6% increase year on year.
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Semiconductor Materials Growth: 2% increase.
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Equity Ratio: Strengthened from 58% to 61%.
Release Date: May 15, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Merck KGaA (MKGAF) achieved profitable growth across all three business sectors in Q1 2025, with group revenues increasing by 3% organically and EBITDA pre rising by 6%.
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Process Solutions showed remarkable progress, crossing into double-digit growth with an 11% increase in Q1, driven by strong order intake and a book-to-bill ratio comfortably above 1.
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Healthcare delivered organic sales growth of 3.4%, supported by strong performance in the CM&E portfolio and solid growth of Erbitux and Mavenclad.
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Electronics experienced positive organic sales development, particularly in Semiconductor Materials, which contributed to a 2% growth in the Semiconductor Solutions business.
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Merck KGaA (MKGAF) has taken proactive measures to mitigate potential impacts from tariffs and currency fluctuations, demonstrating adaptability in a challenging macroeconomic environment.
Negative Points
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Operating cash flow decreased by EUR556 million, primarily due to an increase in receivables and inventories, higher bonus payments, and higher tax payments.
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Science & Lab Solutions (SLS) faced a decline in sales by 2.5% organically, impacted by US policy changes affecting academic and government lab spending and a cautious pharma research spending environment.
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Life Science Services saw a 6.2% organic decline in sales, mainly driven by CDMO activities affected by funding constraints and unfavorable project phasing.
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The Electronics sector's DS&S business experienced a low double-digit percentage decline due to customer projects being pushed out further.
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Merck KGaA (MKGAF) adjusted its 2025 guidance corridors due to currency movements, particularly a weak US dollar, and potential tariff impacts, reflecting ongoing macroeconomic volatility.