Merck KGaA's (OTCPK:MKGAF) (OTCPK:MKKGY) on Oct. 6 reaffirmed its growth objectives noting that up until 2025, it expects to grow sales organically by at least 6% on average per year, equivalent to an increase of more than €1B annually.
The German giant added that it will continue to focus on its 'Big 3' businesses: Process Solutions and Life Science Services, new Healthcare products, and Semiconductor Solutions. By 2025, the businesses are expected to generate ~80% of targeted sales growth, and more than 50% of total sales in 2025.
"I can say with confidence that our highly resilient business sectors are the foundation for our bold plans to accelerate efficient growth and seize organic and inorganic opportunities. We remain fully on track to reach our mid-term growth target of €25 billion in sales by 2025," said Belén Garijo, chair of the executive board and CEO, Merck KGaA.
In addition, Merck KGaA's said that 'larger-scale acquisitions' were an option from 2023 onwards. The company has plans for in-licensing and bolt-on acquisitions.
Inorganic growth initiatives will fit the strategic direction of the company, with high priority being given to the 'Big 3' businesses, Merck KGaA noted.
The Group also confirmed its mid-term forecast for the business sectors:
In Life Science division the company expects organic sales growth of 7% to 10% per year, which will be driven by strong development of its core business.
In Healthcare unit, average annual organic sales growth in the mid single-digit percentage range.
Meanwhile in the Electronics segment, organic sales growth of 3% to 6% per year, driven by the strong above market performance of Semiconductor Solutions, the company added.