Merck Reports Q2 Revenue Surge of 14.3% Amid Strong FX Tailwinds, Raises Full-Year Guidance

Gelonghui August 4th丨Merck KGaA (MRK.US) Q2 revenue was €5.568 billion, up 14.3% year-over-year, surpassing market expectations of €5.42 billion;

Revenue grew organically by 6.6%;

EBIT (Earnings Before Interest and Taxes) of 1.177 billion euros, a year-on-year increase of 12.2%;

EBITDA was 1.709 billion euros, a year-on-year increase of 16.2%;

EBITDA margin was 30.7%, compared to 30.2% in the same period last year.

Adjusted EBITDA was €1.782 billion, up 13.1% year-over-year, surpassing market expectations of €1.71 billion. Excluding the positive impact of exchange rates, adjusted EBITDA would have grown by only 3.2%.

Adjusted EBITDA margin was 32%, compared to 32.4% in the same period last year;

Net profit of 8.7 billion euros, a year-on-year increase of 16.5%;

Adjusted earnings per share of €2.64, representing a 17.9% year-over-year increase;

Operating cash flow was 8.52 billion euros, a year-on-year decrease of 4.1%.

Looking ahead to the full year of 2022, the company expects revenue to grow by 6-9%, reaching 21.9-23.0 billion euros (previously 21.6-22.8 billion euros), with market expectations at 21.9 billion euros.

Adjusted EBITDA will grow by 5-9%, to €6.75-7.25 billion (previously €6.6-7.1 billion);

The positive impact of foreign exchange is expected to increase revenue by 5-8% (previously 3-6%);

At a tax rate of 23%, the adjusted earnings per share will be €9.85-10.75 (previously €9.6-10.5).