Merck KGaA reports 2006 financial results

Merck KGaA has announced its financial results for the 2006 financial year, in addition to reporting preliminary figures for Serono. Merck recorded group sales of 6.3 billion euros (4.25 billion pounds), a rise of 8.5 per cent on the previous year.

Net profit rose 46 per cent to one billion euros, with the balance sheet being described as the strongest since the formation of the company. In response, the board proposed a dividend of 90 cents per share alongside a bonus dividend of 15 cents as a result of exceptional gains.

Meanwhile, Merck reported an 8.5 per cent rise in revenues generated by Serono, to 2.8 billion euros, while the company saw a net profit of 735.4 million euros, compared to a net loss of 106.1 million euros in 2005.

Dr Michael Roemer, chairman of Merck, said: “The year 2006 was another record year for Merck, allowing us to increase our dividend and setting us on a new course for the future.”

He added that, taking the company’s research and development pipeline into account, the future of the company appeared positive.

Last month, Merck announced that it planned a squeeze-out for the remaining shares of Serono after it surpassed the necessary 98 per cent threshold, in addition to delisting and deregistering shares in the company.