Merck KGaA (MKGAY.PK), a German science and technology company, Thursday reported higher second-quarter net profit, but lower EBITDA, a key earnings metric, and margin amid weak net sales.
Looking ahead, for fiscal 2025, Merck raised its guidance for EBITDA pre and now expects organic growth of 4 percent to 8 percent, compared to previously expected 2 percent to 7 percent. The change was driven by positive guidance adjustments for Life Science and Healthcare as well as high cost discipline in all business sectors.
The company also raised expectations for Life Science and Healthcare EBITDA pre.
Meanwhile, the company trimmed the higher end of its organic sales growth target range for the Group to 2 percent to 5 percent from previously expected 2 percent to 6 percent.
In the second quarter, net profit grew 8.3 percent to 655 million euros from last year's 605 million euros. Earnings per share improved 7.1 percent to 1.50 euros from 1.40 euros a year ago.
Earnings per share pre amounted to 2.02 euros, compared with 2.20 euros in the year-earlier quarter.
EBITDA dropped 8.5 percent from last year to 1.35 billion euros, and EBITDA Margin declined to 25.6 percent from last year's 27.5 percent.
EBITDA pre was 1.46 billion euros, down 3.1 percent from 1.51 billion euros a year ago. EBITDA Margin was 27.8 percent, down from 28.2 percent last year.
Group net sales declined 1.8 percent to 5.26 billion euros from 5.35 billion euros a year ago, mainly due to negative foreign exchange effects of 4.2 percent. Net sales increased 2 percent organically despite ongoing geopolitical uncertainties.
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