Merck Reports Q4 Net Profit Down 21% and Issues Below-Consensus 2023 Guidance

Intelligent Finance APP learned on February 2 that Merck & Co., Inc. (MRK.US) announced its Q4 and full-year 2022 financial results before the U.S. stock market opened. The financial report showed that the company's Q4 revenue was $13.83 billion, a year-over-year increase of 2%, compared to $13.521 billion for the same period last year. GAAP net profit was $3.017 billion, a year-over-year decrease of 21%, compared to $3.820 billion for the same period last year. GAAP earnings per share were $1.18, compared to $1.51 for the same period last year.

By business segment, pharmaceutical sales reached $12.18 billion, a year-on-year increase of 1%. Among them, the sales of the anti-cancer drug Keytruda were $5.45 billion, a year-on-year increase of 19%; the sales of GARDASIL/GARDASIL 9 (HPV vaccine) were $1.47 billion, a year-on-year decrease of 4%; the sales of diabetes drugs JANUVIA/JANUMET were $913 million, a year-on-year decrease of 34%; and the sales of the COVID-19 oral drug Molnupiravir (trade name: LAGEVRIO) were $825 million, a year-on-year decrease of 13%. Animal health business sales were $1.23 billion, a year-on-year decrease of 2%.

In terms of full-year performance, sales reached US$59.283 billion, a year-on-year increase of 22%; GAAP net profit was US$14.519 billion, a year-on-year increase of 18%, compared to US$12.345 billion for the same period last year; GAAP earnings per share were US$5.71, compared to US$4.86 for the same period last year.

Looking ahead, MSD expects full-year revenue for 2023 to be between $57.2 billion and $58.7 billion; LAGEVRIO sales to be approximately $1 billion; GAAP earnings per share to be between $5.86 and $6.01; non-GAAP earnings per share to be between $6.80 and $6.95, with the market consensus at $7.39.