By Adria Calatayud

Shares of Germany's Merck KGaA rose after the company forecast a return to organic sales growth next year, supported by recovering demand for semiconductor materials and abating Covid-19 headwinds.

At 0749 GMT on Thursday, Merck's shares traded 5.4% higher at EUR153.40.

The life-sciences and electronics group confirmed it expects a broadly stable top-line performance this year, with sales ranging from a 2% fall to a 2% rise and resulting in total net sales of 20.5 billion euros and 21.9 billion euros ($21.60 billion-$23.08 billion).

Analysts polled by FactSet expect Merck's sales to be EUR21.33 billion this year, growing to EUR22.46 billion in 2024.

Merck said weakening Covid-19 sales should be less of a headwind next year than in 2023 for its life-sciences segment, while the semiconductor-material market served by its electronics segment is expected to recover incrementally in 2024.

The company also reiterated medium-term targets for its division and said exposure to structural trends give it confidence in continuing to grow beyond 2025.

Write to Adria Calatayud at adria.calatayud@dowjones.com

(END) Dow Jones Newswires

October 19, 2023 04:07 ET (08:07 GMT)

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