Germany's Merck KGaA Expects Currency Headwinds to Weigh on Earnings

By Adria Calatayud

Germany's Merck KGaA forecast currency headwinds would continue to weigh on its earnings this year, as the life-sciences and chemical company prepares for a leadership change.

In Merck's final set of results with Belen Garijo as chief executive, the company projected lower adjusted earnings and sales to be flat at best for the year ahead, with considerable foreign-exchange headwinds affecting its results.

Merck last year said Kai Beckmann, the head of its electronics division, would take the helm at the group level in May, while French drugmaker Sanofi recently named Garijo as its next CEO.

The company projected earnings before interest, taxes, depreciation and amortization excluding special items to range from 5.5 billion to 6 billion euros ($6.40 billion-$6.98 billion) this year. It forecast net sales at 20 billion to 21.1 billion euros, ranging from a 1% fall to a 2% rise in organic terms.

For last year, Merck said Ebitda before special items rose 0.6% to 6.11 billion euros. Net sales were 21.1 billion euros, up 3.1% organically, as growth in the group's life-science and healthcare segments offset a decline in electronics.

The results broadly matched consensus estimates compiled by Vara Research.

After-tax profit fell 6.1% to 2.615 billion euros.

Write to Adria Calatayud at [e-mail]

(END) Dow Jones Newswires

03-05-26 0128ET