Merck KGaA reported a notable 2% increase in organic net sales for 2024, signaling a robust return to expansion across all three of its business segments. As a prominent German science and technology firm, Merck accomplished sales totaling 21.16 billion euros for the fiscal year ending December 31, 2024.
This figure surpasses the previous year's sales of 20.99 billion euros and also beats the FactSet consensus estimate, which anticipated revenues of 21.13 billion euros. Despite the boost in sales, attributable profit saw a slight decline, falling to 2.78 billion euros from the previous year's 2.82 billion euros. The healthcare segment showcased impressive growth, with organic net sales surging 7% to reach 8.5 billion euros.
This growth was significantly bolstered by effective cost management strategies and decreased research and development expenditures. Key drivers of this growth included strong performances from Merck's oncology medication Erbitux and its treatment for multiple sclerosis, Mavenclad. Meanwhile, the life sciences segment encountered challenging year-over-year comparisons following the surge in demand during the pandemic.
However, it experienced a remarkable recovery in the second half of the year. Despite this positive rebound, full-year organic sales in this segment dipped by 3.3%, totalling 8.9 billion euros. In contrast, the electronics division made a comeback to profitable growth, with organic sales escalating by 4.6%, largely propelled by increasing demand for semiconductor materials within artificial intelligence applications. Belén Garijo, Chair and Chief Executive Officer, remarked, "The challenges of recent years have been taken as an opportunity to strengthen our supply chains and invest in Europe, the United States, and Asia.
In 2025, we will continue to deliver profitable growth across our company. With our innovation-driven portfolio, we are ideally positioned to benefit from global macro trends such as complex biologics, novel modalities, and semiconductors for the AI era." In light of its solid performance, the board is set to propose maintaining a dividend of 2.20 euros per share for 2024 during its upcoming annual general meeting.
Looking forward, Merck anticipates net sales to fall within a range of 21.5 billion euros to 22.9 billion euros in 2025, translating to an expected organic growth rate of 3% to 6%. On the trading front, Merck shares experienced an increase of nearly 2% in the green on Thursday morning..