The pandemic brought record growth to the people of Darmstadt. Merck products for drug research are in demand. The shareholders should benefit greatly.
After a strong second year of Corona, the pharmaceutical and technology group Merck is optimistic about the future.
Thanks to good business in its laboratory division with vaccine developers and manufacturers in the pandemic, the Dax company grew stronger than ever in 2021. But the pharmaceutical division and the electronics business with semiconductor materials also contributed to the growth, as Merck announced on Thursday. This year, sales and operating profit are expected to increase significantly from within.
During the pandemic, the group, which supplies many corona vaccine developers worldwide and also the Mainz-based manufacturer Biontech, experienced a boom. The upswing continued. Sales climbed last year by a good 12 percent to almost 19.7 billion euros. On the earnings side, Merck was able to increase even more. Adjusted for special effects, earnings before interest, taxes, depreciation and amortization rose by a good 17 percent to 6.1 billion euros.
The bottom line is that profits grew by more than half to almost 3.1 billion euros. “In the 2021 financial year we achieved record growth and increased our margins,” said Meck CEO Belén Garijo. She confirmed the goal of 25 billion euros in sales by 2025. For investors, there should be a dividend of 1.85 euros per share than ever before, 45 cents more than in the previous year.
Merck was driven by the booming laboratory division with products and services for drug production and research. Here, internal sales increased by more than a fifth. The pharmaceutical sector, where new drugs against cancer, for example, paid off, was a little less strong. In addition, the business with infertility treatments also grew due to catch-up effects. During the pandemic, fertility clinics were temporarily closed.
In specialty chemicals, Merck benefited from a fast-growing semiconductor business, which the group entered with the takeover of the US supplier Versum. Semiconductors are in short supply worldwide, especially in the automotive industry. Meanwhile, the color pigments business recovered. However, there were again losses in liquid crystals, for example for smartphone screens, where tough competition from Asia has been affecting Merck for some time.
Source: Stern
Jane Stock is a technology author, who has written for 24 Hours World. She writes about the latest in technology news and trends, and is always on the lookout for new and innovative ways to improve his audience’s experience.
