BERLIN (dpa-AFX) - Merck KGaA (MKGAY.PK), a German science and technology major, has revised down its mid-term annual organic sales growth targets for Life Science and Healthcare businesses, while raising its expectations for Electronics business. In addition, the company has confirmed its annual guidance.
The company now expects its Life Science business to grow 7 percent to 9 percent, compared with previous expectation for 7 percent to 10 percent growth. The updated range is still above the market average. The revised growth target reflects the updated view on China's mid-term growth prospects.
Furthermore, Merck aims to continue with its merger and acquisition strategy in Life Science business. It will additionally intensify the in-licensing of drug candidates in Healthcare.
Belén Garijo, CEO of Merck, said, 'M&A remains a key priority for Merck. And we remain disciplined and patient in our approach in order to maximize the strategic impact of any acquisitions.'
Healthcare business sector now projected to report a slight growth, lower than previously anticipated mid-single-digit percentage growth range. This is due to the recently announced pipeline setbacks. However, in the long term, the company aims to return to growth in the mid-single-digit percentage range, supported by external innovation.
The Group now projects its Electronics business to register 5 percent to 9 percent growth, which is significantly higher than the previous range of 3 percent to 6 percent, due to high demand of chips for AI applications.
Looking ahead, for the full year, the company still expects earnings per share pre of 8.20 euros to 9.30 euros.
Merck continues to project EBITDA pre in the range of 5.8 billion euros to 6.4 billion euros, with organic growth of 4 percent to 10 percent.
Annual sales are still anticipated to be between 20.7 billion euros and 22.1 billion euros, with organic growth of 2 percent to 5 percent.
Copyright(c) 2024 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2024 AFX News
