Merck KGaA's ( OTCPK:MKGAF ) ( OTCPK:MKKGY ) Q2 revenue was driven by its main three business divisions and the company raised its FY22 outlook.
Q2 GAAP EPS rose +17.9% to €2.64, while Group net sales grew +14.3% Y/Y to €5.57B. EBITDA pre increased +13.1% to € 1.78B.
"We continued to deliver despite major external challenges in our operating environment. A record quarter in Life Science, strong performance of our new Healthcare products, and the double-digit growth of Semiconductor Solutions within our Electronics business demonstrate the strength of our globally diversified business," Merck KGaA's Chair of the Executive Board and CEO Belén Garijo.
Net sales from Life Science segment increased by +19.0% Y/Y to ~€2.65B. Science & Lab Solutions business grew +13.5% to €1,09B.
Process Solutions business grew +19.5% Y/Y to ~€961.5M. The company said COVID-19 business declined as anticipated (org. growth >20% excl. declining COVID-19).
Healthcare segment's net sales grew by +7.6% to ~€1.92B.
Oncology product sales increased +8.1% Y/Y to €415M with sales of urothelial cancer drug Bavencio growing +68.3% Y/Y to €146.1M. However, sales of colorectal/head and neck cancer drug Erbitux declined -5.8% Y/Y to €257.5M.
Meanwhile, sales of the Neurology & Immunology franchise declined organically by –1.2% Y/Y to €429M.
Multiple sclerosis (MS) drug Mavenclad sales increased +34.8% Y/Y to €212.1M. But other MS drug Rebif declined -12.2% Y/Y to €217.3M.
Fertility business sales declined –2.7% to €351M, while Cardiovascular/Metabolism/Endocrinology business sales saw a growth of +2.7% to €691M Y/Y.
Sales of Electronics business sector grew +16.3% Y/Y to €996M. Net sales o Semiconductor Solutions business unit increased organically +20.3% Y/Y to €653M. However, net sales of the Display Solutions business unit declined -15.9% Y/Y to €233M.
Outlook :
The company said it confirms its guidance for (6% to 9%) and EBITDA pre (5% to 9%).
The company expects Group net sales between €21.9B and €23.0B (previously: €21.6B to €22.8B).
Earnings per share pre of €9.85 to €10.75 (previously: €9.60 to €10.50), based on a tax rate of 23%.
EBITDA pre in a corridor of €6.75B to €7.25B (previously: €6.6B to €7.1B)
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Merck KGaA Q2 sales grow on all-round show, raises FY22 outlook