Merck is growing slower this year due to coronavirus

M

The German pharmaceutical and specialty chemicals company Merck warns of a negative impact of the new corona virus on its revenues. The impact of the outbreak on sales is 1 percent, according to the concern. The assumption here is that the number of infections and the death toll in the first quarter peaks. Merck still thinks that it will be able to achieve “solid” revenue growth over its own resources over the whole of 2020.

The pharmaceutical also takes into account a more pessimistic scenario, in which it takes longer to curb the virus from Wuhan. That could lead to a global recession, Merck fears. If the situation begins to deteriorate further, the German company will make an adjustment to its forecast for 2020. Merck emphasizes that it remains difficult to predict precisely what impact the corona crisis will ultimately have on the company.

Last year Merck managed to grow quite well. Turnover in 2019 rose by more than 5 percent on its own, to 16.2 billion euros compared to a year earlier. Below the line, a profit of 1.3 billion euros remained.

About the author

Oliver I. Kjeldsen

Oliver I. Kjeldsen has a corporate finance and extensive expertise in company audit. He grants us amazing insights on taxation, international affairs and friendly advice on nearly any topic of interest. His email is [email protected]

Add comment

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Recent Posts

Categories