CSL Limited Announced Double-Digit Profit Growth In Interim Results

CSL

Biotechnology company, CSL Limited (ASX: CSL) today announced its interim results for Fiscal 2019’s half year ended 31st December 2018.

The key highlights of the result have been sales revenue of US$4,505 million, up 11%, Earnings before interest and Tax of US$1,553 million, up 6% and net profit after tax of US$1,161 million, up 10% on constant currency basis compared to the previous corresponding period.

Australia’s leading health care company, CSL reported that the delivery of double-digit profit growth was underpinned by the increased usage of immunoglobulin, speciality products as well as Seqirus’ portfolio of influenza vaccines. 

Earnings per share of the company grew 10% to US$2.56 in 1H 19 compared to 1H 18. The Board of Directors declared an interim dividend of US$0.85 per share, up 8% PCP, scheduled to be paid on 12 April 2019 with the record date of 14 March 2019.

Mr Paul Perreault, CSL’s Chief Executive Officer and Managing Director said that the company posted solid interim results on the back of strong performance of the company’s immunoglobulin portfolio with Privigen® sales growing 17% and Hizentra® sales growing 14%.

Most interestingly, the company now expects its FY19 NPAT to be around the upper end of already stated guidance range of US$1,880 million to US$1,950 million at constant currency. Looking forward, the management advised that there seem to the continuous demand for strong for CSL’s plasma and recombinant products.

The company further targets to move ahead of the market’s growth in plasma collection with around 30-35 new collection centres planned to be launched this financial year.

During the first half of FY19, CSL Limited managed to turn Seqirus influenza vaccines business into profitability. Seqirus delivered first-half earnings before interest and taxes of over $300 million but is reportedly expected to post a loss in the second half of FY19 due to the seasonality of this business.

On the operational front, real-world effectiveness data has shown that Seqirus’ FLUCELVAX® is more effective than standard egg-based QIV in preventing influenza-like illness in the US. FLUAD® and FLUCELVAX® preferred a recommendation for the 65+ cohort in the UK and Australian public market going forward.

CSL also informed the retirement of Seqirus’ President Gordon Naylor who has been with CSL since 1987. Gordon has decided to retire from the company later this year, however, he will reportedly continue to lead Seqirus until his replacement is appointed.

The company has secured a Good Supply Practices license from China which will now remove the company’s reliance on 3rd party distributor while improving participation in the value chain. For Fiscal 2020, the company intends to identify sales when made to the customer, make Multi-month one-off sales timing adjustment in FY20 and have no impact on supply to patients during the transition.

CSL last traded at $186.090, down 3.924% on 13 February 2019. Its Price to Earnings ratio was 37.460x with a market capitalisation of $87.73 billion. The stock has massively moved up by 38.09% over the past 12 months including a positive price change of 0.43% over last three months.


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