Poor quarter for Merck KGaA, mainly due to negative currency impact

Merck KGaA today has announced a poor second quarter, with revenues slightly increasing to €3.7bn, but an EBIT of €328m–that is a 35% decline as compared to Q2 2017–and €251m net income (-40% vs Q2 2017); the group’s cash flow decreased from €1.5bn to €0.750bn. The results were especially affected by a negative currency effect (-11%), due to the euro strengthening. The results confirm that 2018 is a transition year and Merck will resume growth in 2019, the group’s CEO Stefan Oschmann has said in commenting the results.

The Darmastadt-based group places great expectation on the two new drugs Bavencio (cancer) and Mavenclad (multiple sclerosis), which together have generated €37m revenues in Q2 2018, that is 50% more than last year. Merck’s shares (Frankfurt) have soon reacted by declining 3%.

(Source: FAZ)