Sales are recognized net of sales-related taxes as well as sales deductions. They are recognized once the goods have been delivered or the services have been rendered, the significant risks and rewards of ownership have been transferred to the purchaser, the amount of revenue can be measured reliably, and it is probable that the economic benefits will flow to the entity. When sales are recognized, estimated amounts are taken into account for expected sales deductions, for example rebates, discounts and returns. In addition to revenue from the sale of goods, sales also include revenue from services, but the volume involved is insignificant. Long-term, [...]

Cost of sales primarily included the cost of manufactured products sold as well as goods for resale. Cost comprises overheads and, if necessary, inventory write-downs, in addition to directly attributable costs, such as the cost of materials, personnel and energy.

Sales were generated primarily from the sale of goods and to a limited degree also included revenues from services rendered. Merck Group sales totaled € 10,700.1 million in 2013 (2012: € 10,740.8 million), which represented a decline of –0.4% compared to 2012 (increase of 8.4% in 2012). Adjusted for the impact of foreign exchange rates and acquisitions, organic growth amounted to 4.2% (2012: 4.5%). Sales are presented by division and region in the Segment reporting (see Note ).

In 2013, Merck performed well in a challenging market environment. Despite adverse exchange rate movements, strong earnings improvements were achieved, thanks mainly to the accelerated implementation of the efficiency measures within the scope of the “Fit for 2018” transformation and growth program. In 2013, total revenues of the Merck Group declined slightly by –0.7% to € 11,095 million (2012: € 11,173 million). Organic growth increased total revenues by 3.8%. Negative foreign exchange effects lowered total revenues by –4.6%. Apart from the negative exchange rate movements of Latin American currencies and the U.S. dollar, this decline was mainly due to [...]

In 2013, sales of the key products of the Merck Serono division developed as follows: Merck’s top-selling drug Rebif®, which is used to treat relapsing forms of multiple sclerosis, achieved slight organic growth of 1.4% in 2013. This was especially attributable to its good performance in the first half of 2013, during which sales grew organically by 4.7%. Yet in the second half of 2013, Rebif® suffered an organic decline in sales, primarily in North America. Taking adverse foreign exchange effects of –2.9% into account, Rebif® sales decreased by –1.5% to € 1,865 million (2012: € 1,893 million). In North America, which generated 51% of Rebif® sales [...]