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Consolidated Income Statement1

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€ million Note 2018 2017
Net sales ➞ 8 14,836 14,517
Cost of sales ➞ 9 – 5,382 – 5,071
Gross profit 9,454 9,446
 
Marketing and selling expenses ➞ 10 – 4,384 – 4,349
Administration expenses – 993 – 899
Research and development costs ➞ 11 – 2,225 – 2,108
Impairment losses and reversals of impairment losses on financial assets (net)2 ➞ 38 27
Other operating income ➞ 12 627 1,212
Other operating expenses ➞ 13 – 780 – 880
Operating result (EBIT)3 1,727 2,423
 
Finance income ➞ 32 77 51
Finance costs ➞ 32 – 343 – 345
Profit before income tax 1,461 2,129
 
Income tax ➞ 14 – 368 428
Profit after tax from continuing operations 1,093 2,557
Profit after tax from discontinued operation ➞ 5 2,303 57
Profit after tax 3,396 2,615
thereof: attributable to shareholders of Merck KGaA, Darmstadt, Germany (net income) 3,374 2,605
thereof: attributable to non-controlling interests ➞ 36 22 10
 
Earnings per share (in €) ➞ 17
basic 7.76 5.99
thereof: from continuing operations 2.51 5.87
thereof: from discontinued operation 5.25 0.12
diluted 7.76 5.99
thereof: from continuing operations 2.51 5.87
thereof: from discontinued operation 5.25 0.12
1
Previous year’s figures have been adjusted, see Note (49) ‟Effects from new accounting standards and other presentation and measurement changes”.
2
Relevant for the first time as of January 1, 2018, given the first-time application of IFRS 9, see (49) ‟Effects from new accounting standards and other presentation and measurement changes”.
3
Not defined by International Financial Reporting Standard (IFRSs).