In 2013, Merck once again performed well in a market environment that remained challenging. The robust organic growth achieved almost fully offset the adverse exchange rate effects that impacted the development of total revenues and sales. The good operating business performance along with the accelerated implementation of the efficiency measures within the scope of the “Fit for 2018” transformation and growth program led to a strong increase in EBITDA pre. The EBITDA pre margin was 30.4% (2012: 27.6%), reflecting the high profitability of the Merck Group. In 2013, the business free cash flow of the Merck Group amounted to € 2,960 million (2012: € 2,969 million), thus reaching the previous year’s excellent level.
The solid accounting and finance policy of the Merck Group is reflected by the very good key balance sheet figures, which improved even further in 2013 owing to good business performance. For example, the strong equity ratio of 48.1% in 2012 rose further to 53.2%. Following the sharp reduction in working capital in 2012, another notable improvement was achieved in 2013. Taken together with the successful performance of operating business, this led to a high inflow of funds. Among other things, this cash flow was used to repay financial liabilities, making it possible to lower net financial debt to € 307 million (2012: € 1,926 million).
Against the backdrop of the superb liquidity position and financing base as well as the excellent business development, the economic position of the Merck Group can be assessed positively overall. It offers an ideal starting basis for the further execution of the successfully commenced “Fit for 2018” transformation and growth program, the focus of which is now shifting to organic and inorganic growth. In this connection, special reference is made to the announcement made in December 2013 of the intention to acquire AZ Electronic Materials S.A., Luxembourg, in 2014.
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