Merck KGaA expects earnings and sales growth this year after reporting a rise in annual earnings on temporarily reduced research and development expenses in its healthcare segment and strict cost discipline.

Merck KGaA on Thursday forecast currency-adjusted operating earnings growth of up to 8%, helped by demand for semiconductor chemicals and for lab equipment in biotech drug production.

Merck KGaA forecast slow profit growth for this year as its life science business continues to recover and the boom in AI lifts demand at its semiconductor division.