Germany's Merck KGaA predicted a decline in earnings on Thursday, warning of a decline at its electronic chemicals unit and citing a drop in COVID-related demand for its lab supplies from drug and vaccine makers.

For 2023 earnings before interest, taxes, depreciation and amortisation (EBITDA), adjusted for one-offs, the company "assumes a moderate decline to an about stable development", before any currency swings, it said.

Negative foreign exchange effects would likely be an additional drag of between 1% and 4%, it added.

"Overall, Merck assumes that 2023 will be a challenging year. The slowing semiconductor market, decreasing Covid-19-related demand and persistently high inflation will contribute to this," it said in a statement. (Reporting by Ludwig Burger, Editing by Friederike Heine)