In the first nine months of 2012, total revenues of the Merck Group increased 9.0% to € 8,338 million (9M 2011: € 7,651 million), driven by similar contributions from both organic growth (+4.3%) and positive benefits from changes in foreign exchange rates (+4.2%) and supported by growth from acquisitions (+0.4%). Sales were up 8.8% to € 8,029 million (9M 2011: € 7,381 million), with sales growing 4.1% organically, a favorable impact from changes in foreign exchange rates contributing 4.3% and acquired businesses adding 0.4%. After a moderate start to 2012, business trends strengthened in the second and third quarters. The strongest driver of organic growth was Merck Serono, which benefited from higher volumes in most of its therapeutic areas as well as positive pricing trends, particularly in the United States. From a regional perspective, the share of Group sales in Emerging Markets and North America increased to 34% and 20%, respectively (9M 2011: 33% and 18%, respectively), reflecting softer economic conditions in Europe, but also an increasing business focus on markets with the strongest growth profiles.
EBITDA pre one-time items was € 2,175 million, or 27.1% of sales, in the first nine months of 2012 (9M 2011: € 2,043 million, or 27.7% of sales), up 6.5% but down as a percentage of sales, reflecting a tough year-on-year comparison due to an exceptionally strong first quarter 2011 in all divisions. On a reported basis, € 528 million of one-time items were booked in the first nine months of 2012, including both impairments of € 23 million and € 409 million of other one-time costs related to the Group’s “Fit for 2018” efficiency program. Factoring in these higher one-time items as well as a net € 48 million in one-time gains in the first nine months of 2011, which included the disposal of the CropBioscience business, reported EBITDA declined by 19.2% to € 1,689 million (9M 2011: € 2,091 million). EPS pre one-time items for the first nine months of 2012 amounted to € 5.56 (9M 2011: € 5.12), an increase of 8.6%.
Merck Group | EBITDA pre one-time items by quarter/Jan.-Sept.
Free cash flow totaled € 1,860 million in the first nine months of 2012 (9M 2011: € 1,380 million), up 34.8%, as a result of a strong operational performance and effective working capital management, leading to a substantial reduction in net financial debt to € 2,127 million as of September 30, 2012 (December 31, 2011: € 3,484 million).
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