Who Optimizes SG&A Costs Better? Merck & Co., Inc. or Grifols, S.A.

Optimizing SG&A Costs: A Comparative Analysis

In the competitive landscape of the pharmaceutical industry, managing Selling, General, and Administrative (SG&A) expenses is crucial for maintaining profitability. This analysis delves into the SG&A cost optimization strategies of two industry giants: Merck & Co., Inc. and Grifols, S.A., from 2014 to 2023.

Merck & Co., Inc. consistently reported higher SG&A expenses, peaking in 2014 with a 16% higher cost than in 2020. Despite fluctuations, Merck's expenses showed a downward trend, indicating effective cost management strategies. In contrast, Grifols, S.A. exhibited a steady increase in SG&A expenses, rising by approximately 90% over the same period. This upward trend suggests a different strategic focus, possibly on expansion or increased operational activities.

Understanding these trends provides valuable insights into how these companies navigate financial challenges, offering lessons in strategic financial management for businesses worldwide.