CSL announces bumper $US1.2 billion profit, lifts guidance
CSL has beaten market expectations with a $US1.2 billion ($1.7 billion) net profit on revenue of $US4.5 billion for the December half year and lifted its full year earnings guidance.
The upgrade is not a big surprise.
Consensus earnings estimates for the fiscal year were $US1.94 billion ahead of the result, which was was at the top end of CSL’s guidance of $US1.88 billion to $US1.95 billion provided last year., suggesting the market was expecting an upgrade, according to Bloomberg.
The company lifted its dividend to US85c, which equates to $1.20 in Australian dollar terms.
"This is a solid result and particularly pleasing given it follows a very strong comparative period," said CSL chief executive Paul Perrault in the announcement to the ASX.
CSL said the half year performance was driven by increased usage of its immunoglobulin products for chronic therapies and higher value sales of its flu vaccines.
"Our immunoglobulin portfolio is performing very well, with Privigen sales growing 17 per cent and Hizentra sales sales growing 14 per cent."
Sales of its plasma based products was up 8 per cent to $US3.55 billion after adjusting for currency movements, driven by a 12 per cent increase in immunoglobulin sales to $US1.7 billion.
Its flu-vaccine based Seqirus business increased sales by 21 per cent to $US949 million.
"Our Seqirus influenza vaccine business is running to plan," said Mr Perreault.
"Only three years ago it posted a full year loss of over $US300 million."
The bad news is that Seqirus, which posted its first profit last year, will lose its boss Gordon Naylor, who has anounced plans to step down after a 31-year career at CSL.
Speaking of the company's outlook for the year, Mr Perreault said plans to open 30 to 35 plasma collection centres this year are on track.
"We expect to again outpace the market in growing plasma collections," he said.
"Seqirus is tracking to plan but due to the seasonality of this business we anticipate it to post a loss in the second half of the year."