Australia-based pharmaceuticals company CSL reports 17% increase in half-year net profit
Australia-based pharmaceuticals company CSL has reported a 17% increase in its half-year statutory net profit, showcasing a strong performance in its main blood-plasma business. CSL’s statutory net profit for the six months through December was US$1.90 billion, surpassing market expectations of US$1.84 billion.
Total statutory revenue saw a 12% increase to US$8.05 billion, exceeding market forecasts of US$7.94 billion. The company has declared an interim dividend of US$1.19 per share, up from US$1.07 in the previous year.
When adjusting for foreign-exchange movements, CSL’s net profit rose by 20% to US$1.94 billion. Its underlying profit, at constant exchange rates, increased by 13% to US$2.06 billion, while annual revenue went up by 11% to US$7.95 billion. This positive outcome was attributed to exceptional performance in its CSL Behring unit, particularly in the area of immunoglobulins, a crucial component derived from plasma. The company noted early benefits from recent plasma initiatives, leading to a recovery in gross margin.
Looking forward, CSL has reaffirmed its financial outlook, expecting an underlying profit for the fiscal year 2024 in the range of US$2.9 billion to US$3.0 billion, indicating an annual growth rate of 13%-17%. The company highlighted its strong position for delivering annualized double-digit earnings growth over the mid-term, driven by continued strong demand for its immunoglobulins franchise.
CSL faced challenges during the initial stages of the coronavirus pandemic due to disruptions in blood plasma collections. However, the situation has improved as restrictions eased and plasma collections resumed.
Analyst comment
Positive news. The market is likely to respond positively to CSL’s strong financial performance, exceeding market expectations. The company’s increase in net profit and revenue, especially in its blood-plasma business, demonstrates resilience and potential for growth. The reaffirmation of its financial outlook for FY 2024 further reinforces investor confidence.
