Germany’s Merck KGaA has revised its outlook for 2023, anticipating lower earnings and sales. The company reported a decrease in third-quarter revenue across all segments.
Merck KGaA now predicts that its net sales for 2023 will trend slightly below the mid-point of the previously stated range of €20.5 billion to €21.9 billion ($21.96 billion-$23.46 billion). Furthermore, the company expects its earnings before interest, taxes, depreciation, and amortization (EBITDA) excluding one-time items to fall within the lower half of the range of €5.8 billion to €6.4 billion.
During the third quarter, Merck KGaA reported an aftertax profit of €740 million, compared to €926 million in the same period last year. Net sales for the quarter experienced a decline of 11%, amounting to €5.17 billion. Negative foreign-exchange movements negatively impacted performance, while weak pandemic-related demand and inventory reductions affected the life-sciences segment. Additionally, a subdued semiconductor market weighed on the electronics segment.
On an organic basis, the healthcare sales of Merck KGaA grew by 7.4%. However, life-sciences and electronics sales witnessed a decline of 13% and 7.9%, respectively. EBITDA excluding one-time items dropped 20% to €1.45 billion.
According to consensus estimates provided by the company, analysts projected EBITDA excluding one-time items of €1.39 billion and net sales of €5.19 billion.