Despite the above expenses, the operating result increased at a higher rate than total revenues and the gross margin. The first-quarter operating result rose 26% to EUR 372 million from EUR 295 million in the year-ago quarter. Organically, meaning excluding acquisitions, basically Millipore, divestments, and currency effects, the Group operating result rose by 14%.
The Group return on sales (ROS: operating result/total revenues) increased to 14.5% in the first quarter of 2011 compared to 14.0% in the year-ago quarter, boosted by the strong performance of the Chemicals business sector. Group core ROS (operating result excluding Serono- and Millipore-related amortization of intangible assets and integration costs/total revenues) in the first quarter of 2011 was 24.6% compared to 20.6% in the year-ago quarter.
Exceptional items in the first quarter of 2011 amounted to EUR 158 million. This included EUR 157 million from the sale of the Crop BioScience business to Novozymes A/S (announced in December 2010) and EUR 1 million in additional cash in-flow from the sale of the Théramex women’s health business (completed in 2010). The year-ago amount was negligible.
Therefore, earnings before interest and tax (EBIT) in the first quarter of 2011 jumped 80% to EUR 530 million compared to EUR 295 million in the year-ago quarter.
Due to interest on the financing for Millipore, Merck’s financial result increased by 77% to EUR –68 million in the first quarter of 2011 compared to EUR –39 million in the year-ago quarter.
The Merck Group’s first-quarter profit before tax increased 80% to EUR 461 million from EUR 256 million in the year-ago quarter. Merck’s underlying tax ratio was 25.1% for the first quarter of 2011 compared to 24.0% in the year-ago quarter.
Profit after tax in the first quarter of 2011 jumped by 77% to EUR 344 million from EUR 195 million in the first quarter of 2010.