Merck KGaA 1st-qtr 2012 sales rise but net profit plunges

German drug major Merck KGaA (MRK: DE) this morning  reported first-quarter 2012 results with 3.2% growth in total revenues to 2.65 million euros ($3.44 billion), driven by its Merck Serono (1.42 billion euros, +5.4%), and Merck Millipore (653 million euros, +7.3%) units, and consumer health (108 million euros, +7.4%). Sales for the Group increased 3.5% to 2.56 billion euros in first quarter compared to 2.48 billion euros in the year-ago quarter. Merck fell shares dipped 0.8% to 77.84 in early trading.

Gross profit declined 1.5% to 1.90 billion euros; EBIT fell to 311 million euros and EBITDA pre declined to 675 million euros or 26.3% of sales (versus 29.7% of sales in first-quarter 2011). The Merck Group’s first-quarter 2012 profit before tax declined 47% to 246 million euros compared to 461 million euros in the year-ago quarter, which was inflated by the 157 million-euro gain on the divestment of the Crop BioScience business. Profit after tax declined 49% to 177 million euros and net profit fell 49% to 174 million euros or 1.67euros per share, up slightly on consensus expectations of 1.71 euros.