Source: Sharecast
Net sales came in at €5.1bn in the three months to March, a 2.8% decline which Merck attributed to currency fluctuations.
However, on an organic basis, sales rose 2.9%. Earnings before interest, tax, depreciation, amortisation and adjustments (EBITDA pre, its preferred measure of profitability) were also stronger, rising 5.3% on the same basis to €1.5bn.
Driving growth was robust trading in process solutions and semiconductor materials, which helped offset the impact of generic competition in the US. As a result, the group - which warned on profits in March - boosted guidance for the full year. It now expects net sales to come in between €20.4bn and €21.4bn, and EBITDA pre between €5.7bn and €6.1bn.
It had previously forecast net sales of between €20bn and €21.1bn, and EBITDA pre in the range of €5.5bn to €6bn.
The revised guidance "primarily reflects assumptions of stronger momentum in life sciences and healthcare’s resilience in a challenging environment", Merck noted, alongside no sales of multiple sclerosis drug Mavenclad in the US from May. It had previously expected no sales from March, in the face of increased generic competition.
Newly-installed chief executive Kai Beckmann said: "Our first-quarter performance underlines the strength of the company’s diversified portfolio and its clear focus on complementary science and technology businesses.
"As markets, technologies and customer needs evolve, we will adapt Merck’s operating model and move towards a stronger focus on integrated workflow solutions, expanding our offerings for customers and patients.”
As at 1115 BST, share in family-controlled Merck - which traces its roots back to 1668 - were trading up 8% in Frankfurt.