Merck KGaA posts 49% net profit rise for 2006, with revenues up 8.5%

Darmstadt, Germany-headquartered drug and chemicals group Merck KGaA has posted record results for 2006, with net profit rising 48.8% to 1.32 billion euros ($1.74 billion) and earnings per share up 49.1% to 5.07 euros, on an 8.5% increase in sales to 5.77 billion euros. The news, on March 1, saw the firm's share price dip 1.3% to 92.85 euros on the Frankfurt exchange.

Merck - the world's oldest pharmaceutical company with a history going back to 1668 - said that, on a stand-alone basis and excluding its generics division (which it has previously announced is up for sale), it expects high single-digit growth in sales and a "comfortable double-digit" increase in earnings before interest, tax and exceptionals for the coming year.

The group also revealed figures for the recently-acquired Serono Group, consisting of Merck Serono SA and its affiliates, which saw 2006 sales rise 8.5% to $2.80 billion. For the fourth quarter, revenues increased 10.4% to $739.2 million, with pretax profits 17.7% lower at $137.4 million. Net profit after minorities for the three-month period leapt 35.8% to $195.7 million.