Merck, a leading science and technology company, has delivered profitable growth in fiscal year 2024, demonstrating resilience and strategic execution across its Healthcare, Life Science, and Electronics divisions. The company recorded €21.2 billion in net sales, marking an organic increase of 2.0%, with EBITDA pre rising to €6.1 billion—a 6.9% organic growth.

A strong fourth quarter performance further reinforced Merck’s upward trajectory, with net sales rising 3.8% year-on-year and EBITDA pre growing 19.7% organically. Looking ahead to 2025, Merck forecasts continued profitability with expected net sales between €21.5 billion and €22.9 billion and EBITDA pre ranging from €6.1 billion to €6.6 billion.

"Merck is back on a growth path with all three businesses. 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," said Belén Garijo, Chair of the  Executive Board and CEO of Merck. 

Key Business Performance Highlights:

Healthcare: A Major Growth Driver

• Net sales rose to €8.5 billion, an organic growth of 7.0%.
• Oncology segment grew by 12.7%, with Erbitux achieving €1.2 billion in sales, further cementing its blockbuster status.
• Neurology & Immunology franchise saw organic growth of 2.3%, led by Mavenclad’s 12.3% increase in sales.
• Cardiovascular, Metabolism & Endocrinology sales reached €2.9 billion, reflecting 8.5% organic growth.

Life Science: Rebounding After Early-Year Headwinds

• Sales in Science & Lab Solutions remained stable at €4.7 billion.
• Process Solutions recovered with 4.1% organic growth in Q4, despite an overall 6.4% decline for the year due to inventory destocking.
• Life Science Services saw a contraction, with sales declining to €722 million.

Electronics: AI-Driven Growth in Semiconductor Materials

• Net sales reached €3.8 billion, up 4.6% organically.
• Semiconductor Solutions led the growth with a 7.8% organic increase, fueled by demand for AI-driven advanced chip materials.
• Display Solutions rebranded as Optronics but experienced a 3.4% decline in sales.

Strategic Moves and Investments

Merck executed key strategic initiatives to reinforce long-term growth:

• Divested Surface Solutions to sharpen focus on semiconductors and display technologies.
• Acquired Mirus Bio, enhancing capabilities in cell and gene therapy development.
• Expanded semiconductor capabilities with Unity-SC acquisition, improving chip production efficiency.
• Ramped up investment in production & R&D, including:
  • €290 million for a biosafety testing facility in Maryland, USA.
  • €300 million for an Advanced Research Center in Darmstadt, Germany.
  • €70 million for ADC manufacturing expansion in St. Louis, USA.

Sustainability and ESG Commitments

Merck remains on track to cut greenhouse gas emissions by 50% by 2030. In 2024, the company reduced emissions by 26%, nearly halving its carbon footprint since 2020.

Outlook for 2025: Sustained Growth Across All Sectors

Merck projects 3% to 6% organic sales growth in 2025, driven by semiconductor demand, healthcare expansion, and AI-driven efficiencies.

"We have emerged stronger, with all three businesses back on a growth path. Our focus on innovation in biologics, novel modalities, and AI-powered semiconductors positions us for sustained success," said Belén Garijo, CEO of Merck.

With a resilient business model, strategic acquisitions, and strong market positioning, Merck is set to drive long-term value for shareholders and stakeholders alike.