BERLIN (dpa-AFX) - German drug maker Merck KGaA (MKGAY.PK) said it has proposed to its shareholders a dividend increase of 0.05 euros per share or 5.3% to 1.00 euros per share.
'We made a promise and we delivered on that promise,' Karl-Ludwig Kley, Chairman of Merck's Executive Board, told shareholders. 'Today we are strongly positioned in our three business sectors Healthcare, Life Science and Performance Materials. And we are poised for further organic growth after having established not only strong business sectors, but also innovation and growth platforms.'
The proposed increase in the dividend to 1.00 euros per share reflects the successful development of Merck. The total dividend payment takes into account the 1:2 share split in 2014 as well as the capital resources required for the company's further transformation steps.
For 2015, Merck expects a slight increase in organic sales over the previous year amid moderately positive foreign exchange effects. Owing to the expected operating development and positive foreign exchange effects, Merck also forecasts a slight increase in EBITDA pre one-time items and business free cash flow in 2015.
If the acquisition of Sigma-Aldrich is completed by mid-2015 as planned, growth will be higher,' said Kley. 'In this case, we expect double-digit growth rates in net sales. EBITDA pre one-time items and business free cash flow would also increase sharply compared with 2014.'
Copyright RTT News/dpa-AFX