Merck Kgaa · XETR:MRK
Merck Kgaa — Q2 2025 Earnings Presentation
42 slides from Merck Kgaa's earnings presentation, Aug 7, 2025
Slide 1: Acceleration in Life Science Drives Strong Growth Momentum
Acceleration in Life Science Drives Strong Growth Momentum Merck KGaA, Darmstadt, Germany Q2 2025 results Belén Garijo, CEO Helene von Roeder, CFO August 7, 2025
Slide 2: Disclaimer
Disclaimer Publication of Merck KGaA, Darmstadt, Germany. In the United States and Canada the group of companies affiliated with Merck KGaA, Darmstadt, Germany operates under individual business names (EMD Serono, Millipore Sigma, EMD Performance Materials). To reflect such fact and to avoid any mis
Slide 3: Agenda
Agenda 01 Executive Summary 02 Financial Overview 03 Outlook & Guidance 3 Merck KGaA, Darmstadt, Germany Q2 2025 Results Presentation | August 7, 2025
Slide 4: Executive summary
Executive summary 01
Slide 5: Highlights: Sustaining Sales Growth Momentum as Life Science Accelerates
Highlights: Sustaining Sales Growth Momentum as Life Science Accelerates Operations Group Financials Q2 YoY organic sales growth1 Life Science: Q2 organic sales: +2.0% ▪ Very strong PS growth of +11% drives LS sales (+4%) ▪ Very strong YoY improvement in PS orders continues Q2 organic EBITDA pre: +4
Slide 6: Delivering Profitable Organic Sales Growth amid Strong Currency Headwinds
Delivering Profitable Organic Sales Growth amid Strong Currency Headwinds Q2 YoY Net Sales Q2 YoY EBITDA pre Organic Currency Portfolio Total €1,509 m 4.6% €1,462 m Life Science 3.7% -3.6% 0.3% 0.4% -7.2% -0.5% Healthcare 3.6% -5.2% 0.0% -1.6% Electronics -5.6% -3.5% 1.7% -7.4% Group 2.0% -4.2% 0.4%
Slide 7: Financial overview
Financial overview 02
Slide 8: Q2 2025: Overview
Q2 2025: Overview Key figures Comments [€m] Q2 2024 Q2 2025 Δ ▪ Sales down -2%; moderate org. growth is overcompensated by FX headwinds Net sales 5,352 5,255 -1.8% ▪ LS sales around stable, as HC is down EBITDA pre 1,509 1,462 -3.1% slightly and EL is down significantly Margin (in % of net sales) 28
Slide 9: Q2 2025: Reported Figures
Q2 2025: Reported Figures Reported results Comments ▪ EBIT up, primarily due to the absence of [€m] Q2 2024 Q2 2025 Δ prior year HC asset impairment, EBIT 792 891 12.4% partially offset by one-time EL costs ▪ Adverse change to financial result Financial result -7 -62 764.2% reflects tax items and lo
Slide 10: Life Science Q2: Sustains Low-teens PS Growth, Confirming LS Acceleration
Life Science Q2: Sustains Low-teens PS Growth, Confirming LS Acceleration Life Science P&L Net sales bridge [€m] IFRS Pre €2,258 m 3.7% 0.3% €2,267 m Q2 2024 Q2 2025 Q2 2024 Q2 2025 -3.6% Net sales 2,258 2,267 2,258 2,267 M&S -567 -544 -563 -544 +0.0% Q2 2024 Organic Currency Portfolio Q2 2025 Admin
Slide 11: Healthcare Q2: Mavenclad, CM&E and Erbitux Drive Profitable Growth
Healthcare Q2: Mavenclad®, CM&E and Erbitux® Drive Profitable Growth Healthcare P&L Net sales bridge [€m] IFRS Pre €2,137 m 3.6% 0.0% €2,102 m Q2 2024 Q2 2025 Q2 2024 Q2 2025 -5.2% Net sales 2,137 2,102 2,137 2,102 M&S -437 -432 -439 -432 Q2 2024 Organic Currency Portfolio Q2 2025 Admin -78 -79 -76
Slide 12: Electronics Q2: Faster DS&S Downcycle, Materials Growth Remains Intact
Electronics Q2: Faster DS&S Downcycle, Materials Growth Remains Intact Electronics P&L Net sales bridge €957 m 1.7% €886 m [€m] IFRS Pre Q2 2024 Q2 2025 Q2 2024 Q2 2025 -5.6% -3.5% Net sales 957 886 957 886 M&S -142 -142 -142 -136 +0.0% Q2 2024 Organic Currency Portfolio Q2 2025 Admin -36 -50 -34 -3
Slide 13: Balance Sheet
Balance Sheet Assets [€bn] Liabilities [€bn] 51.6 51.6 Cash & cash equivalents 2.5 47.4 47.4 3.9 1.2 Receivables 4.5 4.2 Inventories 4.5 30.0 Net equity 28.3 Intangible assets 25.5 22.9 10.3 Financial debt 9.4 Property, plant Payables/refund liabilities 10.0 9.7 3.1 & equipment 2.9 2.0 1.8 Provision
Slide 14: Cash Flow Statement
Cash Flow Statement Q2 2025 – cash flow statement Cash flow drivers [€m] Q2 2024 Q2 2025 Δ ▪ Profit after tax strongly up on solid Profit after tax 605 655 50 operational performance D&A 680 457 -223 ▪ D&A down on absence of prior year HC R&D impairment and lower amortization Changes in provisions -
Slide 15: Outlook & Guidance
Outlook & Guidance 03
Slide 16: Group Full-year 2025 guidance
Group Full-year 2025 guidance Net sales: Organic: +2% to +5% YoY FX: -5% to -2% YoY ~€20.5 – €21.7 bn EBITDA pre: Organic: +4% to +8% YoY PF: -2% to -1% (-€120 m to -€80 m)1 FX: -6% to -3% YoY ~€5.9 – €6.3 bn EPS pre: ~€8.00– €8.70 1) Mainly driven by SpringWorks acquisition closed on July 1, 2025;
Slide 17: 2025 business sector guidance
2025 business sector guidance1 Net sales EBITDA pre Life Science ▪ Organic: +3% to +6% YoY ▪ Organic:+3% to +7% YoY ▪ FX: -5% to -2% YoY ▪ FX: -5% to -2% YoY ▪ ~€8.80 bn to €9.30 bn ▪ ~€2.50 bn to €2.70 bn ▪ PS in line with mid-term target of ~10% Net sales EBITDA pre Healthcare ▪ Organic: +3% to +5
Slide 18: Appendix
Appendix
Slide 19: Geographical Diversification Drives Resilient Organic Sales Growth
Geographical Diversification Drives Resilient Organic Sales Growth Regional breakdown of net sales [€m] Regional organic development Europe +3.0% org. ▪ N. America: LS growth (PS), offset by 31% low-teens EL (DS&S) and moderate HC declines (Bavencio® & Rebif®) despite strong Mavenclad® North America
Slide 20: Additional Financial Guidance 2025
Additional Financial Guidance 2025 Further financial details Corporate & Other EBITDA pre1 ~ -€350 m to -€400 m Interest result2 ~ -€200 m to -€250 m Effective tax rate ~ 21% to 23% Capex on PPE3 ~ €1.6 to 1.8 bn FY 2025 overall hedge ratio ~ 70% Hedging at Corporate & Other line4 EUR/USD hedging @
Slide 21: Credit Details
Credit Details Maturity profile as of June 30, 2025 Credit rating information Coupon [€m] Last LT LT ST Rating Outlook Rating Rating Change 3.875% 1.625% 2.875% 1.875% A3 21.10.21 Stable P-2 800 0.875% 0.125% 842 0.500% 0.375% A 29.05.13 Stable A-1 2.375% 750 1 750 800 600 500 500 634 2025 2026 2027
Slide 22: Profitable Organic Growth in H1, Driven by Healthcare and Life Science
Profitable Organic Growth in H1, Driven by Healthcare and Life Science H1 YoY Net Sales H1 YoY EBITDA pre Organic Currency Portfolio Total €2,963 m 5.2% €2,998 m Life Science 3.1% -1.5% 0.3% 1.9% -3.5% -0.5% Healthcare 3.5% -2.7% 0.0% 0.7% Electronics -2.6% -1.3% 1.2% -2.7% Group 2.3% -2.0% 0.3% 0.6
Slide 23: H1 2025: Overview
H1 2025: Overview Key figures Comments [€m] H1 2024 H1 2025 Δ ▪ Sales up +1% as moderate organic growth is partially compensated by FX Net sales 10,472 10,535 0.6% ▪ Low-teens growth in HC EBITDA drives EBITDA pre 2,963 2,998 1.2% slight growth in EBTIDA pre, offset by FX Margin (in % of net sales)
Slide 24: H1 2025: Reported Figures
H1 2025: Reported Figures Reported results Comments ▪ EBIT up, primarily due to the absence [€m] H1 2024 H1 2025 Δ of prior year HC R&D impairment, EBIT 1,724 1,897 10.0% partially offset by one-time EL costs ▪ Adverse change to financial result Financial result -39 -112 183.3% reflects tax items an
Slide 25: Life Science H1: Low-teens PS Growth, Confirming Ongoing Recovery
Life Science H1: Low-teens PS Growth, Confirming Ongoing Recovery Life Science P&L Net sales bridge [€m] IFRS Pre €4,402 m 3.1% 0.3% €4,485 m -1.5% H1 2024 H1 2025 H1 2024 H1 2025 Net sales 4,402 4,485 4,402 4,485 M&S -1,117 -1,099 -1,108 -1,097 H1 2024 Organic Currency Portfolio +0.0%H1 2025 Admin
Slide 26: Process Solutions: Sales Growth Remains Low Teens amid Higher Comps
Process Solutions: Sales Growth Remains Low Teens amid Higher Comps Sales development [€m] - org. growth [%] YoY 938 945 ▪ Organic sales up low teens year-over-year; 919 sequential sales growth continues 896 11% 11% ▪ Order intake remains very strong year-over- 871 year 4% 4% ▪ Book-to-bill >1, at s
Slide 27: Science & Lab Solutions: Headwinds from US Academia and Government
Science & Lab Solutions: Headwinds from US Academia and Government Sales development [€m] - org. growth [%] YoY 1,192 1,167 1,143 1,149 1,150 ▪ Organic sales growth around stable year- over-year amid government spending policies in the US impacting academia & government ▪ Pharma research spending ca
Slide 28: Life Science Services: Managing Funding Volatility, Demand Fluctuations
Life Science Services: Managing Funding Volatility, Demand Fluctuations Sales development [€m] - org. growth [%] YoY 194 199 ▪ Sales decline moderating, up qoq, amid continuously challenging funding 171 172 environment for early-stage novel modalities 151 ▪ Contract testing down low-teens against to
Slide 29: Healthcare H1: CM&E, Mavenclad, and Erbitux Drive Profitable Growth
Healthcare H1: CM&E, Mavenclad®, and Erbitux® Drive Profitable Growth Healthcare P&L Net sales bridge [€m] IFRS Pre €4,184 m 3.5% 0.0% €4,216 m H1 2024 H1 2025 H1 2024 H1 2025 -2.7% Net sales 4,184 4,216 4,184 4,216 M&S -836 -843 -834 -843 H1 2024 Organic Currency Portfolio +0.0%H1 2025 Admin -154 -
Slide 30: Oncology: Double-Digit Organic Erbitux Growth Underpins Franchise
Oncology: Double-Digit Organic Erbitux® Growth Underpins Franchise ® Sales development Oncology, [€m] YoY Bavencio net sales, [€m] org. org. org. org. org. 200 186 180 184 ▪ Down -12% org., mainly due to [€m] 9.2% 9.1% 13.8% -1.9% 3.9% 157 158 150 increased competition in the 550 US, Japan and first
Slide 31: SpringWorks Acquisition Completed Successfully Closed on July
SpringWorks Acquisition Completed Successfully Closed on 1 July ® Sales development SpringWorks, Ogsiveo net sales, [US$m] [US$m] YoY ® 80 67 ▪ Ogsiveo up over 50% qoq with [$m] 60 62 strongest quarter since launch 49 40 44 40 ▪ Positive CHMP opinion adopted 90 Not Consolidated till Q3’251 82 20 in
Slide 32: N&I: Mavenclad Sales Up 21% YoY Organic with Solid QoQ Growth
N&I: Mavenclad® Sales Up 21% YoY Organic with Solid QoQ Growth ® Sales development N&I, [€m] YoY Mavenclad Y1+Y2 patients1 ▪ Exceptional growth driven by strong commercial execution, org. org. org. org. org. significant increase in Y1 patients [€m] -7.4% 6.7% 2.9% -3.7% 2.6% and positive channel mix
Slide 33: Fertility: Moderate Organic Decline Amid Tough Comps
Fertility: Moderate Organic Decline Amid Tough Comps ® Sales development Fertility, [€m] YoY Gonal-f net sales, [€m] 227 ▪ Sales down -13% org. amid still 209 206 org. org. org. org. org. 192 186 elevated comps reflecting prior [€m] -0.5% 1.1% -4.7% -0.4% -3.4% year competitor stock-outs 450 ▪ Negat
Slide 34: CM&E: Solid Organic Growth of 5% Supported by All Therapeutic Areas
CM&E: Solid Organic Growth of 5% Supported by All Therapeutic Areas ® Sales development CM&E, [€m] YoY Glucophage net sales, [€m] ▪ Glucophage® sales +4% org. org. org. org. org. org. [€m] 13.7% 7.8% 8.4% 10.6% 4.7% 247 248 despite reversal of positive 238 242 YoY 235 250 phasing seen in Q1 200 800
Slide 35: Group pipeline August 07, 2025
Group pipeline August 07, 2025 Healthcare pipeline Phase 1 Phase 2 Phase 3 Registration mirdametinib (MEK inhibitor) EU approval Adult and pediatric NF1-associated plexiform neurofibromas 1,2 Jul-2025 nirogacestat (Gamma Secretase Inhibitor) Adult desmoid tumors 1,3 Positive CHMP pimicotinib (CSF-1R
Slide 36: Healthcare catalysts
Healthcare catalysts Q1 2025 Q2 2025 Q3 2025 Q4 2025 Enpatoran Pimicotinib1 M0324 (Oral TLR7/8 inhibitor ) (CSF-1R antagonist) (MUC1xCD40) Read-out - Phase II study: Cohort B (SLE) Read-out of Part 2 of Phase III study in Initiation of Phase I study (Cohort A read out positively in Q3-2024) TGCT Pre
Slide 37: Electronics H1: Faster DS&S Downcycle, Materials Growth Remains Intact
Electronics H1: Faster DS&S Downcycle, Materials Growth Remains Intact Electronics P&L Net sales bridge €1,886 m 1.2% €1,835 m [€m] IFRS Pre -2.6% -1.3% H1 2024 H1 2025 H1 2024 H1 2025 Net sales 1,886 1,835 1,886 1,835 M&S -280 -284 -279 -275 H1 2024 Organic Currency Portfolio +0.0%H1 2025 Admin -73
Slide 38: Semiconductor Solutions Impacted by Sharper DS&S Downcycle
Semiconductor Solutions Impacted by Sharper DS&S Downcycle Sales development [€m] - org. growth [%] YoY 691 665 649 ▪ Overall, the partial hedge is unwinding 642 603 faster with a sharper DS&S downcycle; structural growth intact ▪ Semi Materials up low-single-digit YoY 11% 7% ▪ 6th consecutive quart
Slide 39: Cash flow statement
Cash flow statement H1 2025 – cash flow statement Cash flow drivers [€m] H1 2024 H1 2025 Δ ▪ Profit after tax strongly up on solid Profit after tax 1,305 1,393 88 operational performance D&A 1,134 930 -204 ▪ D&A down on absence of prior year HC R&D impairment and lower amortization Changes in provis
Slide 40: Adjustments in Q2 2025
Adjustments in Q2 2025 Adjustments in EBIT [€m] Q2 2024 Q2 2025 Adjustments thereof D&A Adjustments thereof D&A Life Science 72 56 68 19 Healthcare 126 155 27 3 Electronics 24 11 33 4 Corporate & Other 37 0 14 0 Total 259 222 141 27 40 Merck KGaA, Darmstadt, Germany Q2 2025 Results Presentation | Au
Slide 41: Adjustments in H1 2025
Adjustments in H1 2025 Adjustments in EBIT [€m] H1 2024 H1 2025 Adjustments thereof D&A Adjustments thereof D&A Life Science 98 56 100 19 Healthcare 127 155 22 3 Electronics 36 11 59 6 Corporate & Other 67 0 18 0 Total 328 223 199 29 41 Merck KGaA, Darmstadt, Germany Q2 2025 Results Presentation | A
Slide 42: Meet the team
FLORIAN SCHRAEDER NADJA GROSSCHMIDT SUSAN KUEHN eet the team Head of Investor Relations Assistant Investor Relations Assistant Investor Relations +49 6151 72-5271 +49 6151 72-3321 +49 6151 72-3744 florian.schraeder@emdgroup.com nadja.grosschmidt@emdgroup.com susan.kuehn@emdgroup.com DATE EVENT Augus