German multinational science and technology company Merck KGaA announced its Life Science unit, which supplies tools and materials for the whole pharmaceutical value chain, saw adjusted earnings jump 30.7% in the third quarter, driven by demand related to COVID-19.
Earnings before interest, taxes, depreciation and amortisation (EBITDA), adjusted for one-off items, for the division reached 824 million euros.
In an unscheduled press release last week, Merck raised its full-year profit forecast again, citing very strong performance at its Life Science unit, and published forecast-beating group earnings for the quarter. According to Merck, all business sectors – first and foremost Life Science – will contribute to organic growth.
In Q3, Life Science generated organic sales growth of 17.1%. Foreign exchange effects contributed 0.6% to sales growth. Consequently, sales of the business sector increased by a total of 17.7% to € 2.2 billion compared with the year-earlier quarter. In the third quarter, EBITDA pre of Life Science increased by 30.7% to € 824 million. The EBITDA pre margin was 36.6%.
Key business developments in Life Science in the third quarter:
- The Process Solutions business unit, which markets products and services for the entire pharmaceutical value chain, generated organic sales growth of 27.6%. This strong development was driven by additional business in connection with the Covid-19 pandemic and continued high demand in the base business.
- Sales of the Research Solutions business unit, which provides products and services to support life science research for pharmaceutical, biotechnology and academic research laboratories, increased organically by 6.8%. In particular, strong demand in the base business had a positive impact.
- Applied Solutions, the business with products for researchers as well as scientific and industrial laboratories, generated organic sales growth of 7.9% thanks to solid demand in the base business and recovery from the lockdown effects in 2020.
Original Source: Merck Group Press Release – Featured Image: © Merck KGaA, Darmstadt Germany