WASHINGTON (dpa-AFX) - German science and technology major Merck KGaA (MKKGY, MRCG.DE, MRK.DE) reported Thursday lower net profit in its third quarter, while EBITDA pre, a key earnings metric, edged up from last year with higher sales. Further, the firm raised fiscal 2026 outlook.
The third-quarter profit after income tax declined 49.9 percent to €450 million from €898 million in the prior-year period. Earnings per share fell to €1.04 from €2.07 a year ago.
Earnings per share before special items remained flat at €2.32 compared with the prior-year quarter.
Reported EBITDA decreased 3.8 percent to €1.615 billion from €1.679 billion last year, with the EBITDA margin at 28.7 percent compared with 31.6 percent in the prior-year quarter. Two one-time effects each contributed a mid-double-digit million euro amount in the year-earlier quarter, impacting comparability.
EBITDA pre totaled €1.682 billion versus €1.669 billion a year ago, reflecting 0.8 percent growth. EBITDA pre on an organic basis grew approximately 0.4 percent. The EBITDA pre margin contracted to 29.9 percent from 31.4 percent in the third quarter of the previous year.
Net sales reached €5.627 billion, up 5.8 percent compared with €5.318 billion in the previous year. Organic net sales growth was 5.1 percent, supported by positive foreign exchange effects of 1.5 percent.
Performance was driven by Process Solutions, Rare Diseases, and Semiconductor Solutions segments, aligning with the company's strategic focus on high-growth value drivers.
Looking ahead for fiscal 2026, Merck now expects net sales between €21.5 billion and €21.9 billion and EBITDA pre between €6.2 billion and €6.4 billion.
The company previously expected net sales between €21.0 billion and €21.8 billion, and EBITDA pre between €5.9 billion and €6.3 billion.
The adjustment reflects improvements in underlying performance and more favorable foreign exchange effects. The guidance also incorporates the acquisition of Bio-Techne, expected to close in December 2026, as a portfolio effect in the Life Science business sector.
Further, the implied organic growth corridor for Group net sales now shifts to 3 percent to 4 percent. Organic EBITDA pre growth is now expected at 3 percent to 5 percent. The company expects earnings per share before special items between €8.30 and €8.70 for the full year.
The company's previous view for implied organic growth corridor for Group net sales was 1 percent to 3 percent. Organic EBITDA pre growth was expected at 0 percent to 3 percent, with earnings per share pre projected between €7.90 and €8.60.
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