Research, Charts & Company Announcements
Research Tree provides access to ongoing research coverage, media content and regulatory news on MERCK KGAA. We currently have 6 research reports from 1 professional analysts.
|06Dec16 02:00||PRN||Merck's Consumer Health Business Drives Consumer-Centric, Purposeful Innovation|
|06Dec16 09:00||PRN||Merck's Consumer Health Business Drives Consumer-Centric, Purposeful Innovation|
|29Nov16 01:21||PRN||FDA Accepts the Biologics License Application for Avelumab for the Treatment of Metastatic Merkel Cell Carcinoma for Priority Review|
|17Nov16 08:15||PRN||With an Extended Fertility Technologies Portfolio Merck Now Covers All IVF Steps|
|14Nov16 01:00||PRN||Merck KGaA, Darmstadt, Germany's Phase IIb ADDRESS II Results Confirm Potential of Atacicept as a Candidate Therapy for SLE|
|02Nov16 01:56||PRN||Merck KGaA, Darmstadt, Germany, Presents Phase II Data on the Safety and Efficacy of Atacicept at the 2016 ACR/ARHP Annual Meeti|
|02Nov16 12:00||PRN||Merck KGaA, Darmstadt, Germany, Presents Phase II Data on the Safety and Efficacy of Atacicept at the 2016 ACR/ARHP Annual Meeting|
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Research reports on
Healthcare and Life Science see profitability push; guidance lifted
15 Nov 16
Q3 sales strongly grew +19% to €3,724m, primarily driven by the Sigma-Aldrich acquisition as organic growth was levelled out by negative FX developments. The gross profit margin dropped from 69.9% to 66.4% as a consequence of the acquisition. EBITDA strongly increased by +23% to €1,110m and net profit attributable to shareholders went up +26% to €457m. After the weak development in Q2, operating CF caught up in Q3 (+22% to €1,067m) based on the strong operating performance and additionally helped by higher NWC inflow (€172m after €157m). Lacking some higher income from the disposal of other financial assets and divestments, investing CF swung back from €418m to €-223m despite lower capex (€-208m after €-246m). Financing CF (€-702m after €2,217m) had been dominated by net gross debt issuance (€2,278m) in preparation for the acquisition in the previous year’s quarter, whereas the reported quarter saw net gross debt repayment (€-640m). In the light of the strong Q3 figures, management again adjusted FY 2016 guidance, now seeing sales at €14.9-15.1bn (unchanged), EBITDA pre one-offs at €4,450-4,600m (vs. €4,250-4,400m) and EPS pre one-offs at €6.15-6.40 (vs. €5.85-6.10).
Good organic growth, but strong increase in NWC
04 Aug 16
Q2 sales was again pushed by the Sigma-Aldrich acquisition (+19%) and was additionally helped by the strong organic growth in Healthcare and Life Science (+5%), coming in +18% higher at €3,805m. The gross profit margin declined from 68.5% to 65.4%. EBITDA strongly rose +27% to €1,069m, but net profit attributable to shareholders dropped by 9% to €312m. Despite higher D/A, operating CF weakened 5% to €311m due to higher NWC outflows (€-494m after €-366m). Lacking cash–in from the Sigma-Aldrich hedging and some other proceeds which helped the previous year’s figure to end up at €1,860m, investing CF in the reported quarter swung to €-114m. Financing CF (€357m after €174m) was mainly hit by bond repayments. Management adjusted its recent FY 2016 guidance, now seeing sales at €14.9-15.1bn (€14.8-15.0bn), EBITDA before one-offs at €4,250-4,400m (€4.1-4.3bn) and EPS before one-offs at €5.85-6.10 (€5.65-6.00).
Healthcare back on track?
19 May 16
Clearly pushed by Sigma (portfolio: +20%), Merck’s sales rushed upwards +21% (organic: +5%) to €3,665m whereas the gross profit margin declined from 68.0% to 64.3%. EBITDA jumped +60% to €1,282m, also benefiting from the sale of the rights to Kuvan®, and net profit attributable to shareholders more than doubled, helped by a slightly lower tax rate. Operating CF did not fully reflect the operating performance (+26% to €352m) as the neutralisation of the gain on disposal of assets (€-388m after €-15m) were the party pooper. NWC outflow were €-279m after €-312m. Mainly due to the lower net inflow from the disposal of financial assets (€114m after €453m), investing CF moved from €392m to €284m. Primarily due to the absence of a net bond issuance of €-2,363m, financing CF swung from €2,288m to €-572m. Management shared some more details on its FY 2016 guidance, seeing sales at €14.8-15.0bn, EBITDA pre one-offs at €4.1-4.3bn and EPS pre one-offs at €5.65-6.00.
Healthcare remains weak, Life Science becomes the new shining star
08 Mar 16
Q4 sales strongly rose +16% to €3,464m, but gross profit margin slightly weakened from 67.0% to 66.8%. EBITDA stood unchanged at €803m, but net profit attributable to shareholders more than halved (-55% to €126m). Operating CF clearly dropped by 37% to €718m, seeing much lower NWC inflow (€71m after €465m). Reflecting the payment for Sigma-Aldrich, investing CF ended up at €-14,605m (€-1,144m) and financing CF rose from €1,519m to €2,833m. Management will propose a slightly higher dividend (€1.05 after €1.00 per share) at the AGM on 29 April 2016, paying out roughly 40% of the calculated EPS. For FY 2016, management expects slight organic growth fuelled by Sigma and sees EBITDA pre one-offs to increase in the low double-digits.
Healthcare’s continued weak dynamics
12 Nov 15
Merck’s Q3 sales rose +7% to €3,121m and the gross profit margin improved from 67.5% to 69.9%. EBITDA strongly increased (+15% to €901m), partly helped by higher D/A, and net profit attributable to shareholders jumped +46% to €364m. Operating CF increased +20% to €872m driven by the stronger operating performance and reporting higher NWC inflow (€158m after €128m). Investing CF swung from €-364m to €418m seeing much lower investments in financial assets (€-52m after €-1,346m) and lower inflow from the disposal of other financial assets (€580m after €1,142m), which gives a net inflow. Financing CF swelled from €90m to €2,217m, propelled by a €2.0bn bond repayment. Having received the final EU approval for the Sigma-Aldrich takeover on 10 November 2015, management adjusted its guidance, now expecting sales of €12.6-12.8bn (of which €300m is attributable to Sigma; previously: €12.3-12.5bn) and EBITDA pre one-offs of €3,580-3,650m (of which €80-90m is attributable to Sigma; previously: €3,450-3,550m), which looks fairly unchanged for core Merck.
Rebif in trouble and Ebitux’s loses dynamics
06 Aug 15
Q2 sales were primarily driven by favourable FX developments (+10pp) whereas organic growth contributed 2pp to the +14% total growth rate to €3,220m. Gross profit declined from 70.1% to 68.5% but EBITDA improved +10% to €845m. Net profit attributable to shareholders rose +13% to €343m. Operating CF does not reflect the good operating performance (-24% to €326m) due to significantly higher NWC (€-365m after €-193m), primarily burdened by clearly higher changes in other assets and liabilities. Investing CF (€1,860m after €-1,233m) is characterised by the cash-in from the Sigma Aldrich hedging whereas the previous year’s figure reflects the AZ acquisition. Financing CF moved from €-856m to €-174m helped by the swing in other current and non-current financial liabilities and the acquisition of outstanding interests in AZ Materials after obtaining control. Management confirmed its guidance, expecting sales of €12.3-12.5bn and EBITDA pre one-offs of €3,450-€3,550m without the impact of the expected closing of the Sigma-Aldrich acquisition.
08 Dec 16
Elderstreet stake acquired 02 GENERAL NEWS Globalworth premium In this issue Venture capital firm Draper Esprit has taken a 30.8% stake in venture capital trust manager Elderstreet. Both investment managers focus on the technology sector and they will be able to co-invest. Elderstreet has investments in a number of AIM-quoted companies through its VCTs. The purchase was funded by an issue of Draper Esprit shares worth just over £250,000. Simon Cook, the chief executive of Draper Esprit, is a former partner at Elderstreet so he knows the business and the people who run it, although he did leave more than 14 years ago. Cook has previously acquired portfolios from 3i and Cazenove, two other firms where he has worked. Draper Esprit has an option to acquire the remaining shares in Elderstreet, which has more than £25m under management. Adding Elderstreet to the group enables Draper Esprit to offer investors a range of EIS funds, VCTs and an ISA qualifying listed evergreen patient capital fund. The enlarged group has venture capital assets under management of more than £350m. At the end of September 2016, Draper Esprit had a net asset value of 352p a share, which is similar to the current share price. The June 2016 flotation price was 300p a share. Draper Esprit is quoted on Ireland’s Enterprise Securities Market as well as AIM.
N+1 Singer - Morning Song 05-12-2016
05 Dec 16
RTHM is acquiring a profitable Canadian listed mobile specialist for equivalent of US$42.5m consideration in shares (88.235m). This helps adds to two growth vectors RTHM is targeting; (i) adds unique exclusive audience (10m unique) and (ii) Exclusive demand Yahoo and Facebook. The business has 15 premium and owned and operated apps which provide users with rewards for activity. The business is expected to deliver c$9m of EBITDA in FY18 including $2m of cost synergies. This equates to just 4.7x EV/EBITDA. This marks what we see the first step in RTHM activity to scale the business and deliver on margin potential (see our initiation notes). Our initial estimates for EPS revisions are very significant - for FY18 are 2.3 cents (currently 0.6) and for FY19 4.3 (currently 2.5). There is a call at 830 for investors and we will revise post this.
Exponential growth now in sight
07 Dec 16
The best things in life are worth waiting for, or at least that seems to be the case with Kromek, a pioneering radiation detection expert. Since listing on AIM at 51p back in October 2013, the company has not only been busily refining and field testing its next generation CZT (cadmium zinc telluride) technology, but importantly also securing a raft of new orders.
N+1 Singer - Morning Song 09-12-2016
09 Dec 16
This morning’s AGM Statement confirms that trading in the first four months of the year to 31st October was in line with expectations. Revenue was slightly above the prior year period and cash collection has remained strong. The Group has reiterated its commitment to maintaining a progressive dividend policy. The statement is encouraging and we therefore leave our forecasts unchanged. We note the attractions of a 5% dividend yield and consider the shares inexpensive at 4.5x FY’17 EV/EBITDA.
Small Cap Breakfast
07 Dec 16
Creo Medical group—Schedule 1 update.. £20m raise. Expected market cap £61.2m, admission expected 9 December. ECSC—Schedule 1 from provider of cyber security services. Raising £5m. Vendor sale £0.8m. Target date 14 Dec. Expected market cap £15m. RM Secured Direct Lending - The secured direct lending fund intends to float on the Main Market on 15 December raising up to £100m
N+1 Singer - Morning Song 06-12-2016
06 Dec 16
With FY16 volume and revenue already disclosed in the pre-close, the focus in today’s prelims is on PBT (£100.3m versus our £101m) and EPS (96.8p versus our 95.4p). No special dividend triggered this year (none forecast) and DPS is held at 46.8p (N1SE: 48.0p). On end markets, recent commentary is reiterated – the core business is growing, whilst consumer electronics will be subdued in the current year (competitive capacity from Solvay). On currency, there will be a material benefit in the current year (a little more than the £14m to £15m previously indicated), and a further tailwind next year if current rates are maintained (quantum TBC). There is also an investment of £10m today in a minority interest in Magma Global, Victrex’ oil and gas mega programme partner. Although the share price is now close to our TP of 1730p, we feel that there is enough in today’s announcement to retain a positive stance on medium term opportunities with strong cashflow and a special dividend potentially to look forward to in the current year.