Merck KGaA · XETR:MRK
Merck KGaA — Merck KGaA, Darmstadt, Germany — Q1 2025 Earnings Presentation
34 slides from Merck KGaA's earnings presentation, May 15, 2025
Slide 1: Solid Start to the Year, Amid Macro Uncertainty
Solid Start to the Year, Amid Macro Uncertainty Merck KGaA, Darmstadt, Germany Q1 2025 results Belén Garijo, CEO Helene von Roeder, CFO May 15, 2025
Slide 2: Disclaimer
Disclaimer Publication of Merck KGaA, Darmstadt, Germany. In the United States and Canada the group of companies affiliated with Merck KGaA, Darmstadt, Germany operates under individual business names (EMD Serono, Millipore Sigma, EMD Performance Materials). To reflect such fact and to avoid any mis
Slide 3: Agenda
Agenda 01 Executive Summary 02 Financial Overview 03 Outlook & Guidance 3 Merck KGaA, Darmstadt, Germany Q1 2025 Results Presentation | May 15, 2025
Slide 4: Executive summary
Executive summary 01
Slide 5: Highlights: Group Continues to Deliver Growth
Highlights: Group Continues to Deliver Growth Operations Group Financials Q1 YoY organic sales growth1 Life Science: ▪ Sales growing +3% driven by strong PS growth of +11% ▪ Very strong YoY improvement in PS orders Q1 organic sales: +2.5% ▪ SLS down -2% with headwinds from US policy changes Q1 organ
Slide 6: Delivering Solid, Profitable First-Quarter Growth Across All Business Sectors
Delivering Solid, Profitable First-Quarter Growth Across All Business Sectors Q1 YoY Net Sales Q1 YoY EBITDA pre Organic Currency Portfolio Total €1,454 m 5.8% 0.2% €1,535 m Life Science 2.5% 0.6% 0.3% 3.5% -0.5% Healthcare 3.4% -0.2% 0.0% 3.2% Electronics 0.6% 0.9% 0.6% 2.1% Group 2.5% 0.4% 0.2% 3.
Slide 7: Financial overview
Financial overview 02
Slide 8: Q1 2025: Overview
Q1 2025: Overview Key figures Comments [€m] Q1 2024 Q1 2025 Δ ▪ Sales up +3%, driven by org. growth with modest support from FX / portfolio effects Net sales 5,120 5,280 3.1% ▪ All sectors contributing org. sales growth EBITDA pre 1,454 1,535 5.6% Margin (in % of net sales) 28.4% 29.1% 0.7pp ▪ EBITD
Slide 9: Q1 2025: Reported Figures
Q1 2025: Reported Figures Reported results Comments ▪ EBIT up, driven by both HC and EL; LS [€m] Q1 2024 Q1 2025 Δ lower on efficiency costs EBIT 931 1,006 8.0% ▪ EBIT also includes one-time impairments related to HC R&D Financial result -32 -50 54.4% ▪ Adverse change to financial result Profit befo
Slide 10: Life Science Q1: Low-teens PS Growth, Validating Ongoing Recovery
Life Science Q1: Low-teens PS Growth, Validating Ongoing Recovery Life Science P&L Net sales bridge [€m] IFRS Pre €2,144 m 2.5% 0.6% 0.3% €2,218 m Q1 2024 Q1 2025 Q1 2024 Q1 2025 Net sales 2,144 2,218 2,144 2,218 M&S -551 -555 -545 -554 +0.0% Q1 2024 Organic Currency Portfolio Q1 2025 Admin -112 -10
Slide 11: Healthcare Q1: Continued Profitable Growth Driven by CM&E, Erbitux and Mavenclad
Healthcare Q1: Continued Profitable Growth Driven by CM&E, Erbitux and Mavenclad Healthcare P&L Net sales bridge [€m] IFRS Pre €2,048 m 3.4% 0.0% €2,114 m -0.2% Q1 2024 Q1 2025 Q1 2024 Q1 2025 Net sales 2,048 2,114 2,048 2,114 M&S -398 -411 -395 -411 Q1 2024 Organic Currency Portfolio Q1 2025 Admin
Slide 12: Electronics Q1: Semiconductor Materials is the Key Growth Driver
Electronics Q1: Semiconductor Materials is the Key Growth Driver Electronics P&L Net sales bridge €928 m 0.6% 0.9% 0.6% €948 m [€m] IFRS Pre Q1 2024 Q1 2025 Q1 2024 Q1 2025 Net sales 928 948 928 948 M&S -138 -142 -138 -139 +0.0% Q1 2024 Organic Currency Portfolio Q1 2025 Admin -37 -48 -32 -36 R&D -7
Slide 13: Balance Sheet
Balance Sheet Assets [€bn] Liabilities [€bn] 51.6 49.4 51.6 2.5 49.4 Cash & cash equivalents 1.0 3.9 4.3 Receivables 4.5 4.5 Inventories 30.0 Net equity 29.9 Intangible assets 25.4 24.6 8.7 10.3 Financial debt Property, plant Payables/refund liabilities 10.0 9.9 3.0 3.1 & equipment 2.0 1.8 Provision
Slide 14: Cash Flow Statement
Cash Flow Statement Q1 2025 – cash flow statement Cash flow drivers [€m] Q1 2024 Q1 2025 Δ ▪ Profit after tax moderately up on solid Profit after tax 699 738 38 operational performance D&A 454 473 19 ▪ D&A up on higher PPE and one-time impairments in relation to HC R&D Changes in provisions 40 -45 -
Slide 15: Outlook & Guidance
Outlook & Guidance 03
Slide 16: Group Full-year 2025 guidance
Group Full-year 2025 guidance Net sales: Organic: +2% to +6% YoY FX: -3% to +0% YoY ~€20.9 – €22.4 bn EBITDA pre: Organic: +2% to +7% YoY FX: -5% to -2% YoY ~€5.8 – €6.4 bn EPS pre: ~€7.90 – €9.00 16 Merck KGaA, Darmstadt, Germany Q1 2025 Results Presentation | May 15, 2025
Slide 17: 2025 Business Sector Guidance
2025 Business Sector Guidance1 Net sales EBITDA pre Life Science ▪ Organic: +2% to +6% YoY ▪ Organic:+1% to +7% YoY ▪ FX: -3% to +0% YoY ▪ FX: -4% to -1% YoY ▪ ~€8.80 bn to €9.40 bn ▪ ~€2.50 bn to €2.70 bn ▪ Driven by Process Solutions Net sales EBITDA pre Healthcare ▪ Organic: +2% to +6% YoY ▪ Orga
Slide 18: Appendix
Appendix
Slide 19: Geographical Diversification Drives Resilient Organic Sales Growth
Geographical Diversification Drives Resilient Organic Sales Growth Regional breakdown of net sales [€m] Regional organic development Europe +5.6% org. ▪ N. America: decline mainly driven by HC 30% (Rebif / Bavencio); LS (SLS) and EL (DS&S) slightly down ▪ Europe: strong growth in HC and solid North
Slide 20: Additional Financial Guidance 2025
Additional Financial Guidance 2025 Further financial details Corporate & Other EBITDA pre -€500 m to -€550 m Interest result2 ~ -€125 m to -€175 m Effective tax rate ~ 21% to 23% Capex on PPE1 ~ €1.6 to 1.8 bn FY 2025 overall hedge ratio ~ 70% Hedging EUR/USD hedging @ ~ 1.11 2025 Ø EUR/USD assumpti
Slide 21: Credit Details
Credit Details Maturity profile as of March 31, 2025 Credit rating information Coupon [€m] Last LT LT ST Rating Outlook Rating Rating Change 3.875% 1.625% 2.875% 1.875% A3 21.10.21 Stable P-2 0.125% 842 0.500% 800 0.875% 0.375% A 29.05.13 Stable A-1 2.375% 750 750 800 600 500 500 634 2025 2026 2027
Slide 22: Process Solutions: Sales Up, Leaving Customer Destocking Behind
Process Solutions: Sales Up, Leaving Customer Destocking Behind Sales development [€m] - org. growth [%] YoY 938 ▪ Org. sales rise at low-teens YoY organic 919 with improving volumes on higher activity levels 896 11% ▪ Order intake, sustained development, with 871 very strong growth YoY 4% 4% ▪ Book
Slide 23: Science & Lab Solutions: Headwinds from US Academia & Government
Science & Lab Solutions: Headwinds from US Academia & Government Sales development [€m] - org. growth [%] YoY 1,170 1,192 1,167 1,143 1,149 ▪ -2% org. sales decline year-over-year; driven by government spending policies in the US amid still cautious pharma research spending ▪ Biomonitoring and Lab W
Slide 24: Life Science Services: Sales Decline Moderating
Life Science Services: Sales Decline Moderating Sales development [€m] - org. growth [%] YoY 194 199 ▪ Sales decline moderating as COVID effects phasing out 171 ▪ Contract testing down slightly due to demand 157 fluctuations, decline in biotech funding impacting 151 earlier programs ▪ CDMO down low-
Slide 25: Healthcare Organic Growth by Franchise/Product
Healthcare Organic Growth by Franchise/Product Q1 2025 organic sales growth [%] by key product [€m] 157 -15% 186 305 6% 287 287 9% 261 120 -25% 158 206 0% 204 242 10% 221 155 13% 139 157 12% 140 Q1 2025 Q1 2024 25 Merck KGaA, Darmstadt, Germany Q1 2025 Results Presentation | May 15, 2025
Slide 26: Oncology: Continued Solid Erbitux Growth Underpins Franchise
Oncology: Continued Solid Erbitux® Growth Underpins Franchise ® Sales development Oncology, [€m] YoY Bavencio net sales, [€m] org. org. org. org. org. 200 186 186 180 184 ▪ Down mid-teens org. mainly [€m] 19.3% 9.2% 9.1% 13.8% -1.9% 157 150 due to competitive pressure in 550 the US; Japan and first
Slide 27: N&I: Mavenclad Sales up +9% YoY org. with Solid QoQ Growth
N&I: Mavenclad® Sales up +9% YoY org. with Solid QoQ Growth ® Sales development N&I, [€m] YoY Mavenclad Y1+Y2 patients1 ▪ Strong growth and solid performance across major org. org. org. org. org. regions mainly driven by [€m] 8.8% -7.4% 6.7% 2.9% -3.7% continued uptake of Y1 patients 450 434 ▪ Most
Slide 28: Fertility: Around Stable Despite Tough Comps
Fertility: Around Stable Despite Tough Comps ® Sales development Fertility, [€m] YoY Gonal-f net sales, [€m] 227 204 209 206 org. org. org. org. org. 192 [€m] 7.7% -0.5% 1.1% -4.7% -0.4% ▪ Organically stable despite tough 450 comps, reflecting prior year 403 competitor stock-outs 400 383 377 382 365
Slide 29: CM&E: Strong Demand Across Segments Drives +11% org. Franchise Growth
CM&E: Strong Demand Across Segments Drives +11% org. Franchise Growth ® Sales development CM&E, [€m] YoY Glucophage net sales, [€m] org. org. org. org. org. ▪ Glucophage® sales +10% org. [€m] 4.2% 13.7% 7.8% 8.4% 10.6% 247 248 supported by phasing 238 242 YoY 250 221 200 ▪ Approved in more than 70 8
Slide 30: Group pipeline
Group pipeline May 15, 2025 Healthcare pipeline Phase 1 Phase 2 Phase 3 Registration pimicotinib (CSF-1R inhibitor) Tenosynovial giant cell tumor (TGCT)1 avelumab (anti-PD-L1 mAb)+Sacituzumab Govitecan / NKTR-255 / M6223 (anti-TIGIT mAb) LA or metastatic urothelial carcinoma tuvusertib (ATR inhibito
Slide 31: Healthcare catalysts
Healthcare catalysts Q1 2025 Q2 2025 Q3 2025 Q4 2025 Enpatoran Pimicotinib1 M0324 (Oral TLR7/8 inhibitor ) (CSF-1R antagonist) (MUC1xCD40) Read-out - Phase II study: Cohort B (SLE) Read-out of Part 2 of Phase III study in Initiation of Phase I study (Cohort A read out positively in Q3-2024) TGCT Pre
Slide 32: Semiconductor Solutions Driven by Consistently Strong Materials Growth
Semiconductor Solutions Driven by Consistently Strong Materials Growth Sales development [€m] - org. growth [%] YoY 691 665 649 ▪ Overall, continued org. sales growth in 633 642 Semi Solutions in Q1, in-line with MSI ▪ Semi Materials growth strong YoY 11% ▪ 5th consecutive quarter of org. sales 8% 7
Slide 33: Adjustments in Q1 2025
Adjustments in Q1 2025 Adjustments in EBIT [€m] Q1 2024 Q1 2025 Adjustments thereof D&A Adjustments thereof D&A Life Science 26 0 32 0 Healthcare 2 0 -5 0 Electronics 12 0 26 2 Corporate & Other 29 0 4 0 Total 70 0 58 2 Totals may not add up due to rounding 33 Merck KGaA, Darmstadt, Germany Q1 2025
Slide 34: Meet the team
FLORIAN SCHRAEDER NADJA GROSSCHMIDT SUSAN KUEHN eet the team Head of Investor Relations Assistant Investor Relations Assistant Investor Relations +49 6151 72-5271 +49 6151 72-3321 +49 6151 72-3744 [email protected] [email protected] [email protected] DATE EVENT May 1
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