Merck KGaA ETR: MRK opened its 2026 Annual General Meeting (AGM) in person at Frankfurt’s Jahrhunderthalle, marking the company’s first in-person AGM at the venue since 2019, according to Supervisory Board Chairman Michael Kleinemeier, who chaired the meeting.
Kleinemeier formally confirmed the meeting had been convened in accordance with required procedures, including publication in the Federal Gazette on March 12, 2026, and noted that shareholders had not submitted motions to supplement the agenda or filed countermotions ahead of the AGM. He also outlined participation rules, including the ability to vote in advance via postal vote and the investor portal, and said the company would conduct voting electronically using tablets.
Audit and financial statements
Under agenda item 1, Kleinemeier said the Executive Board-prepared annual financial statements and combined management report for fiscal year 2025, as well as the IFRS consolidated financial statements for the Merck Group, were audited by Deloitte GmbH Wirtschaftsprüfungsgesellschaft, Munich. He said the audits “did not lead to any objections” and that Deloitte issued unqualified audit opinions for both the annual and consolidated financial statements and the combined management report.
Kleinemeier added that the Supervisory Board examined the annual and consolidated statements and related reports and, at its Feb. 27, 2026 meeting, raised no objections and approved the financial statements and reports.
Supervisory Board focus areas in 2025
Summarizing the Supervisory Board’s report, Kleinemeier said cooperation with the Executive Board in 2025 was characterized by “intensive trusting exchange,” with regular written and verbal reporting on business development, market and sales conditions, financial position, earnings development, and corporate planning. He also cited quarterly reporting that covered revenue and earnings for the group and for individual business sectors.
Kleinemeier said Supervisory Board discussions during the year addressed strategic considerations for the group and its businesses as well as geopolitical developments. He listed additional topics that included:
- the Climate Protection Plan,
- the acquisition of SpringWorks,
- the group’s cyber risk landscape, and
- artificial intelligence as part of a comprehensive training program.
Garijo outlines transformation and 2025 performance
Executive Board Chair Belén Garijo told shareholders the 2026 AGM would be her final appearance as CEO. Reflecting on her tenure beginning in May 2022, Garijo described leading the company through pandemic-driven disruption and said the company pursued a “five-year transformation journey” aimed at resilience, innovation, and unity.
Garijo said Merck redesigned its footprint by shifting toward regionalization, including “region for region manufacturing and R&D,” and invested more than €7 billion in over 30 new and expanded sites worldwide. She also described a capital allocation approach focused on three long-term growth pillars: bioprocessing, rare diseases, and artificial intelligence.
In Life Science, Garijo cited the acquisition of the chromatography business of JSR Life Sciences as strengthening Merck’s bioprocessing commitment. In Healthcare, she said Merck pivoted toward rare diseases following two phase III pipeline setbacks in prior years and called the acquisition of U.S.-based SpringWorks Therapeutics a strategic fit, adding that it brought two approved rare-disease therapies into Merck’s portfolio. She also referenced pimicotinib, for which Merck acquired commercialization rights from Abbisko Therapeutics for tenosynovial giant cell tumor (TGCT). Garijo later corrected an earlier remark, clarifying that pimicotinib is approved in China but “not approved yet” in the U.S., adding that she meant it could be approved by the end of the year.
In Electronics, Garijo said Merck sharpened its semiconductor focus to capture AI-driven demand, divested Surface Solutions, and acquired Unity-SC, which she described as providing metrology and inspection instrumentation for the semiconductor industry.
Garijo reported that from 2020 to 2025, Merck’s net sales increased 20% and EBITDA pre increased 17%, while operating cash flow rose 30%. She said EPS grew 31% and dividends per share increased 57% over the period. She also cited progress toward climate goals, including cutting net greenhouse gas emissions and emissions from purchased energy by 60% since 2020 and reaching 64% purchased renewable electricity toward an 80% target by 2030.
For fiscal 2025, Garijo reported net sales of €20.1 billion, representing organic growth of around 3.1%. She said EBITDA pre was €6.1 billion, corresponding to a margin of almost 29% of net sales, despite “significant foreign exchange headwinds” and earnings dilution tied to portfolio moves.
By sector, Garijo said Life Science delivered 4% organic sales growth, with Process Solutions achieving double-digit organic growth. She highlighted the opening of a €150 million facility in Blarney, Ireland, to increase capacity for filtration devices, and said a new customer-centric operating model organized around Process Solutions, Discovery Solutions, and Advanced Solutions took effect in January 2026.
In Healthcare, she said the business delivered 3.7% organic growth driven by performance “across all major franchises,” including established medicines such as Mavenclad and Erbitux, while cardiometabolic, endocrinology, and fertility franchises provided a “stable cash generative foundation.” She said that excluding global health programs, the commercial portfolio reached over 100 million patients worldwide in 2025.
In Electronics, Garijo reported a slight sales decline of 0.6%, while semiconductor materials grew organically by 8.2%. She also cited the inauguration of a €500 million Semiconductor Solutions “mega site” in Taiwan and said Optronics delivered a stable performance supported by the Unity-SC acquisition.
Based on the 2025 performance, Garijo said management proposed a stable dividend of €2.20 per share, which she said would mark the 15th consecutive year of an increasing or stable dividend.
Leadership transition effective May 1
Garijo introduced leadership changes effective May 1, saying Benjamin Hein will join the Executive Board as CEO of Electronics, succeeding Kai Beckmann, who will become Chairman of the Executive Board and CEO of Merck on May 1. Beckmann addressed shareholders, thanked Garijo for her leadership, and spoke about his long tenure at Merck, noting he joined in 1989. He emphasized the importance of staying ahead of technological progress, pointing to semiconductor innovation as a key area during his time leading Electronics.
Beckmann said his task as CEO would include fully leveraging Merck’s combined portfolio “for the benefit of patients, our customers, our employees, and of course, for your benefit,” and cited Merck’s workforce as “62,461” colleagues in 65 countries.
In closing remarks, Kleinemeier thanked Garijo and the Executive Board for fiscal 2025 achievements, and said Garijo would hand over leadership to Beckmann at the end of April. He also welcomed Beckmann into his new role and expressed expectations of continued growth under his leadership.
About Merck KGaA ETR: MRK
Merck KGaA operates as a science and technology company in Germany. It operates through Life Science, Healthcare, and Electronics segments. The company's Life Science segment offers tools, chemicals, and equipment for academic labs, biotech, and pharmaceutical manufacturers, as well as industrial sector. This segment provides drug manufacturers with process development expertise and technologies, such as continuous bioprocessing; testing kits and services; reagents and services; testing solutions that analyze air, water, and soil; and testing and tools, as well as products that help test nutritional value and identify quality inconsistencies.
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