Shares of Germany’s Merck KGaA experienced a rise in value after the company projected a return to organic sales growth in the coming year. This positive outlook is attributed to a recovery in demand for semiconductor materials and the easing of Covid-19 challenges.
As of 0749 GMT on Thursday, Merck’s shares were trading 5.4% higher at EUR153.40.
Stable Performance Predicted for Current Year
The life-sciences and electronics group affirmed its expectation of a generally stable top-line performance for the present year. Sales are forecasted to range from a decline of 2% to a rise of 2%. This will result in total net sales of 20.5 billion euros and 21.9 billion euros ($21.60 billion-$23.08 billion).
Based on a FactSet poll, analysts anticipate Merck’s sales to reach EUR21.33 billion this year, with a further increase to EUR22.46 billion in 2024.
Improving Outlook for 2023 and Beyond
Merck anticipates that the impact of weakening Covid-19 sales will be less significant for its life-sciences segment next year compared to 2023. Additionally, the company foresees a gradual recovery in the semiconductor-material market served by its electronics segment in 2024.
The company restated its medium-term targets for the division and expressed confidence in its ability to continue growing beyond 2025 due to exposure to favorable structural trends.