CSL books $US2b profit despite 'sobering' COVID conditions
Biotechnology giant CSL has booked a $US2 billion ($2.8 billion) full year profit and will pay shareholders an increased $US1.07 dividend despite warning that COVID-19 continues to present challenges for the global healthcare industry.
The company revealed on Wednesday morning it had increased its sales revenue by 7.2 per cent to $US8.8 billion ($12.4 billion), gains for both its blood plasma and vaccine businesses while its net profit after tax attributable to members was up 9.6 per cent to $US2.01 billion ($2.8 billion).
CSL CEO Paul Perreault.Credit:Eamon Gallagher
Sales in the company's blood plasma products business CSL Behring were up 9 per cent to $US7.8 billion, while CSL's vaccine producer Seqirus saw revenue up 11 per cent to $US1.3 billion as the demand for influenza vaccines globally grew in the wake of the COVID-19 pandemic.
In a letter to shareholders, CSL chairman Brian McNamee and chief executive Paul Perreault said the pandemic had resulted in "sobering and far-reaching" impacts on the global community and added complexities to CSL's business.
Global shutdowns had presented challenges for collecting plasma, the yellow liquid in blood which CSL collects predominantly in the United States and uses to make treatments for diseases like haeomophilia.
The company's plasma collections for the 2020 financial year were down 5 per cent compared with 2019 and "additional collection costs" had been incurred as city-wide shutdowns presented a barrier to donors attending collection centres.
"To mitigate this, we have a number of measures in place to sustain plasma collections. It is our view that at some point, the pandemic will receive," the company said in briefing notes to investors.
CSL has a broad research pipeline and has been devoting a signifcant portion of its research and deveopment focus to the fight against COVID-19.
Mr McNamee and Mr Perreault said in briefing notes to investors that the company was fortunate to have the unique capabilities and assets to be at the forefront of the virus response.
The company flagged there would be a need for multiple treatment tools in the long-term fight against coronavirus.
"No single vaccine or therapeutic approach is going to solve this health crisis; multiple approaches are essential."
CSL declared a final dividend of $US1.07, up from $US1 last year.
More to come.