Merck 1999: Sustainable sales growth led by strong operative business and acquisitions

Darmstadt/Germany 20. ledna (PROTEXT) - Merck KGaA today announced that the companies of the Merck Group boosted global sales for the full year 1999 by +28,9 percent from EUR 4,149 m to EUR 5,347 m. Extraordinary strong organic sales growth contributed +9,4 percent; further sales increase was due to acquisitions (+18.4 percent) and currency effects (+0.9 percent). In the fourth quarter of 1999 alone, sales climbed by +56.2 percent - an all-time high of sales growth in Merck history, even on the background that about half of this increase was attributable to the acqusition of U.S. laboratory distributor VWR Scientific Products. A full-year sales growth of +9,4 percent was also unparalleled in Merck within the last decade. "This excellent result, combined with a remarkable business expansion during the fourth quarter, gives us reason to very optimistic business expectations for this year", says Prof Dr Hans-Joachim Langmann, Chairman of the Board of Directors of Merck KGaA. The Pharmaceuticals Division increased its sales by +19.6 percent to EUR 2,858 m in 1999, accounting now for about 54 percent of total Merck Group sales. All four business segments contributed to the growth in turnover: Ethicals showed an above- market-average sales growth of +7,9 percent to EUR 1,619 m, while sales in Concumer Healthcare, the former OTC business area, were up +16.6 percent to EUR 262.5 m due to both natural growth and an internal reassignment of product lines. Acqusitions and investments made an essential contribution to the strong growth in Generics (+46.7 percent to EUR 648.1 m) and Contrast Media (+47.2 percent to EUR 328.4 m). The Laboratory Division increased its sales in 1999 by +66.1 percent to EUR 1,604 m, mainly due to the acquisition of laboratory distributor VWR Scientific Products. The division represents today about 30 percent of the Merck Group sales. Without the VWR acquisition, the division would have been accountable for an annual sales growth of +8.1 percent to EUR 1,044 m. The Specialty Chemicals division increased its annual turnover in 1999 by +12.1 percent to EUR 861 m, accounting for 16 percent of Merck Group sales. Within the Regions, North America showed an outstandig sales development of +109 percent, mainly due to inital consolidation of acquisitions. Business in North America now accounts for about 28 percent of Merck Group sales. Recovering markets in Asia boosted sales in this region by +27 percent, while sales in Latin America rose slowly due to the unfavourable development of local currencies. Merck KGaA will present full-year sales and earnings figures in detail at its annual media conference on March 14, 2000, 10:30 a.m., in Darmstadt/Germany. Sales Growth Analysis 1999 ... by Businesses Q4/99 Q1-4/99 Q1-4/98 % (in EUR m) Merck Group 1,607 (+56.2 %) 5,347 (+28.9 %) 4,149 100 % - Currency +5.4 % +0.9 % - Acquisitions +34.6 % +18.4 % - Organic Growth +13.6 % +9.4 % Pharma 760 (+29.3 %) 2,858 (+19.6 %) 2,391 54 % Specialty Chemicals 235 (+26.7 %) 861 (+12.1 %) 768 16 % Laboratory 607 (+143.2 %) 1,604 (+66.1 %) 966 30 % - without VWR SP 284 (+14.0 %) 1,044 (+8.1 %) ... by Regions (in EUR m) Q1-4/99 % Europe 2,550 (+9%) 48 % - thereof in Germany 726 (+3%) 14 % North America 1,517 (+109%) 28 % Latin America 350 (+3%) 7 % Asia 660 (+27%) 12 % Africa/Australia/others 270 (+20%) 5 % Contact: Merck KGaA D-64293 Darmstadt Dr. Hartmut Vennen Tel. +49 61 51 72 2386 Fax +49 61 51 72 7707 E- mail hartmut.vennen@merck.de Internet http://www.merck.de Subscribers please note that material bearing the slug "PROTEXT" is not part of CTK's news service and is not to be published under the "CTK" slug. Protext is a commercial service providing distribution of press releases from clients, who are identified in the text of Protext reports and who bear full responsibility for their contents. PROTEXT