Merck's electronics business benefits from the AI boom, although a broader semiconductor market recovery is pending. CEO Belen Garijo expressed optimism about the regionalization of Merck's supply chain, noting no impact from US tariffs on Canada and Mexico and a manageable impact for China. The company plans to propose a dividend of €2.20 per share at its annual general meeting. CFO Helene von Roeder mentioned expectations for a semiconductor market recovery in the second half of the year.
Key takeaways:
- Merck KGaA forecasts a profit increase in 2025, driven by recovery in its life science business and AI demand in its semiconductor division.
- Adjusted earnings before interest, tax, depreciation, and amortization are expected to rise by 3% to 8% on an organic basis, reaching up to €6.6 billion.
- The company's life science unit is recovering from a post-Covid slump, with increasing demand for lab equipment and vaccine components.
- Merck is in advanced talks to acquire SpringWorks Therapeutics Inc., which could boost its pipeline in cancer and rare diseases.