Key Financial Highlights:

• Full-year net sales increased to €21.2 billion (organically: +2.0%)
• EBITDA pre rose to €6.1 billion (organically: +6.9%)
• Strong fourth quarter: Net sales up 3.8% organically year-on-year, EBITDA pre up organically by 19.7%
• Stable dividend proposed: €2.20 per share
• Forecast 2025: Net sales between €21.5 and €22.9 billion, EBITDA pre of €6.1 to €6.6 billion

Merck, a leading science and technology company, returned to profitable growth in 2024, successfully delivering on its guidance for the year. A strong performance in Healthcare, a rebound in Life Science, and profitable growth in Electronics fueled this turnaround. The company also strategically sharpened its portfolio focus on future growth areas. Following a robust fourth quarter, Merck looks ahead to 2025 with confidence, expecting continued profitable growth.

CEO Perspective: "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.

Business Performance

1. Life Science: Signs of Recovery in Second Half of 2024

• Net sales: €8.9 billion (organically: -3.3%)
• EBITDA pre: €2.6 billion (organically: -6.3%)
• Q4 performance: Net sales up 1.9% organically, EBITDA pre up 16.0%

Despite inventory destocking in the first half of 2024, Life Science regained momentum in the latter half. Process Solutions sales declined to €3.5 billion (organically: -6.4%), but Q4 growth of 4.1% indicates a positive trend. Science & Lab Solutions reported €4.7 billion in sales (+0.2% organically), while Life Science Services saw sales of €722 million.

2. Healthcare: Strong Growth Across All Franchises

• Net sales: €8.5 billion (organically: +7.0%)
• EBITDA pre: €3.0 billion (organically: +22.7%)
• Oncology net sales: €2.0 billion (organically: +12.7%)
• Cardiovascular, Metabolism & Endocrinology: €2.9 billion (+8.5%)

The Healthcare segment continued its growth trajectory, driven by strong sales across its franchises. Oncology, led by Erbitux (€1.2 billion, +15.7% organically), achieved notable gains. Mavenclad, for multiple sclerosis, recorded €1.1 billion in sales (+12.3%). The segment also benefited from temporarily reduced R&D expenses and disciplined cost management.

3. Electronics: AI-Driven Semiconductor Growth

• Net sales: €3.8 billion (organically: +4.6%)
• EBITDA pre: €970 million (organically: +6.9%)
• Semiconductor Solutions: €2.6 billion (organically: +7.8%)

The Electronics sector returned to profitable growth, fueled by demand for high-value semiconductor materials. Growth in Semiconductor Solutions was driven by AI chip advancements and next-generation computing. Display Solutions, rebranded as Optronics in 2025, and Surface Solutions faced minor sales declines.

Strategic Developments in 2024

Portfolio Management and Acquisitions:

• Divestiture of the Surface Solutions business to sharpen focus on semiconductor and display industries.
• Acquisition of Mirus Bio, enhancing Merck's capabilities in transfection reagents crucial for cell and gene therapies.
• Acquisition of Unity-SC, bolstering metrology capabilities in semiconductor manufacturing.

Major Investments:

• €290 million: Biosafety testing facility in Rockville, Maryland, USA
• €70 million: ADC manufacturing expansion in St. Louis, Missouri, USA
• €300 million: Advanced Research Center in Darmstadt, Germany
• €300 million: Bioprocessing Production Center in Daejeon, Korea
• €70 million: Advanced Materials Center in Shizuoka, Japan

Sustainability Progress

Merck significantly reduced its greenhouse gas emissions, cutting combined Scope 1 and 2 emissions by 26% in 2024. The company is on track to achieve its 2030 sustainability goals ahead of schedule.

2025 Outlook: Continued Profitable Growth

• Net sales forecast: €21.5 - €22.9 billion
• EBITDA pre forecast: €6.1 - €6.6 billion
• Expected organic sales growth: 3% - 6%
• Expected organic EBITDA pre growth: 3% - 8%

Merck enters 2025 with a robust pipeline, disciplined financial management, and strategic investments in high-growth areas. With its innovation-driven approach, the company remains well-positioned to capitalize on emerging global trends in biopharma, semiconductors, and digital health.