Merck achieved a strong result in the 1st quarter of 2022. Sales rose 12.2 percent year-on-year to around EUR 5.2 billion. The main growth drivers were the Process Solutions business of Life Science, new healthcare products and the Semiconductor Solutions business of Electronics. Organic growth in Group sales totaled 7.8 percent. Operating profit increased by 12.5 percent to 1.17 billion euros. Net income grew by 17.9 percent to 880 million euros. The Darmstadt-based chemical and pharmaceutical company has now specified the qualitative forecast for fiscal 2022 given in March to organic sales growth of six to nine percent and sales of between 21.6 and 22.8 billion euros.
"Merck has made a promising start to fiscal 2022 thanks to the strong growth and attractive margins of our 'Big 3'. Life Science's outstanding quarter is proof that our core business can deliver impressive growth independent of the Covid 19-related business. We are particularly pleased that our growth story continues despite significant headwinds from the market as a result of the current geopolitical tensions," commented Belén Garijo, Chairwoman of Merck's Executive Board, on the results. In first quarter of 2022, Merck continued to execute its strategic agenda as it moves toward becoming a leader in 21st century science and technology. For example, in February the company completed the acquisition of U.S.-based Exelead, a biopharmaceutical contract manufacturer and developer, and continues to drive growth with its new life science business model, also announced in February.
Life Science performed strongly in the first quarter, reducing overall dependence on sales related to pandemic response. Sales in first quarter of 2022 increased 14.7 percent to 2,445 million euros. Of this, 9.7 percent was organic sales growth and 4.8 percent was driven by positive currency effects. The Process Solutions business unit, with its range of products and services for the entire pharmaceutical manufacturing value chain, achieved organic sales growth of 13.1 percent, the highest rate of increase within Life Science. The positive development was driven by strong demand in the core business, while the Covid-19 solutions business was stable year-on-year. The Research Solutions business unit, with its range of products and services to support research activities in pharmaceutical, biotechnology and academic research institutions, achieved organic sales growth of 2.1 percent. This was mainly due to growth in the core business, with a decline in pandemic-related demand. The Applied Solutions business unit, with its products for researchers and scientific and commercial laboratories, achieved double-digit organic sales growth of 12.9 percent.
In the first three month of 2022, the Healthcare business unit achieved organic sales growth of 6.5 percent, well above the market, and gained share in key markets. Almost all of this organic growth resulted in particular from business with new products. At the same time, the robustness of the portfolio of established products was once again demonstrated. Sales increased overall by 9.5 percent to 1,795 million euros. The Oncology business unit posted organic growth of 26.6 percent in the quarter under review. Sales of an immuno-oncology cancer drug more than doubled. With approvals in 2020 in the US and 2021 in Europe and Japan as first-line maintenance therapy in patients with locally advanced or metastatic urothelial carcinoma (UC), market share was steadily gained in these regions. Sales of the Neurology & Immunology business unit increased organically by 0.8 percent. Merck's product for the short-term oral treatment of relapsing-remitting multiple sclerosis with high disease activity achieved organic sales growth of 24.9 percent. The Fertility product line increased its sales organically by 4.3 percent, while the Cardiovascular Diseases, Metabolic Disorders & Endocrinology business unit grew by 2.5 percent in the reporting period.
Due to assumptions regarding economic and geopolitical conditions, this outlook is subject to increased uncertainty and volatility. Merck expects organic sales growth of six to nine percent in fiscal 2022 (previously strong organic growth), driven by all business sectors, especially Life Science. Overall, the company forecasts sales in the range of 21.6 to 22.8 billion euros.
