MKKGY Merck KGaA (PK)

By Adria Calatayud

Germany's Merck KGaA expects earnings and sales for 2023 to be at the lower half of its outlook ranges, after reporting lower third-quarter revenue across all segments.

The life-sciences and chemical group said Thursday that it now expects net sales trending slightly below the mid-point of its range of 20.5 billion euros to 21.9 billion euros ($21.96 billion-$23.46 billion). Meanwhile, earnings before interest, taxes, depreciation and amortization excluding one-time items are forecast to come in at the lower half of its EUR5.8 billion to EUR6.4 billion range.

For the third quarter, Merck made an aftertax profit of EUR740 million compared with EUR926 million in the same period last year.

Net sales for the quarter fell 11% to EUR5.17 billion. The company said negative foreign-exchange movements hurt its performance. Weak pandemic-related demand and inventory reductions hurt the company's life-sciences segment, while a subdued semiconductor market weighed on its electronics segment, it said.

On an organic basis, Merck's healthcare sales grew 7.4%, but life-sciences and electronics sales fell 13% and 7.9%, respectively.

Ebitda excluding one-time items dropped 20% to EUR1.45 billion.

Analysts expected Ebitda excluding one-time items of EUR1.39 billion and net sales of EUR5.19 billion, according to consensus estimates provided by the company.

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

(END) Dow Jones Newswires

November 09, 2023 01:39 ET (06:39 GMT)

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