CSL (ASX: CSL) expects organic growth to be driven by Vifor integration

Highlights

• CSL develops, manufactures and markets diagnostic and pharmaceutical products, human plasma fractions and cell culture media.
• Recently, the company has upgraded its foreign currency headwind guidance to USD 230 million to USD 250 million, compared to previous guidance of USD 175 million.
• On 24 July 2023, shares of CSL closed 0.31% down at AUD 266.27 apiece.

An Australian biotechnology company, CSL Limited (ASX:CSL) was founded in 961. The company manages its dynamic portfolio of lifesaving medicines and vaccine to prevent influenza. The company’s area of expertise are rare and serious disease, vaccines and iron deficiency and nephrology. CSL has three businesses – CSL Vifor, CSL Seqirus and CSL Behring.

CSL’s sales and service revenue jumped 20% over the previous year in the first half of 2023 (1HFY23). While, the total revenue surged by 19% year-over-year, driven by increase in Plasma collection AND Increase in sales of immunoglobulin, seasonal influenza vaccine and albumin.

During the same period, net profit after tax dropped by 8%, partly because of Vifor acquisition-related expenses and foreign currency impacts.

Dividend announced

While sharing the results for 1HFY23, the company announced an interim dividend of AU$1.55 apiece. The dividend was unfranked and was paid on 5 April 2023.

Outlook

The company expects to see continuous growth in immunoglobulins franchise and plasma collection in the near term.

CSL has recently updated its foreign currency headwind guidance to approximately USD 230 million to 250 million, due to the foreign currency impact on its forecasted profit. The previous guidance was around USD 175 million.

In FY24, CSL expects its NPATA to grow by approximately 13% to 14% to USD 2.9 billion-USD3.0 billion on a constant currency basis.

The company informed that CSL Vifor integration is advancing well and expects this transaction to bring efficiencies across the product portfolio and result in organic growth. According to ASX filing, the company is also making preparations to roll out HEMGENIX in the US.

CSL share performance

Shares of CSL closed 0.31% down at AUD 266.270 per share on 24 July 2O23. Over the past three months, CSL share price has declined by 12.50% and by 9.27% in last 12 months.

The 52-week high of CSL is AUD 314.280 per share, recorded on 3 February 2023. The current stock price is 15.28% lower than its 52-week high.

The 52-week low price of CSL is AUD 255.87 per share, recorded on 17 July 2023, which is 4.06% higher than today’s closing price.

Note 1: Past performance is neither an Indicator nor a guarantee of future performance.

Note 2: The reference date for all price data, and currency, is 24 July 2023. The reference data in this report has been partly sourced from EODHD/Others.

Disclaimer

This article has been prepared by Kalkine Media, echoed on the website kalkinemedia.com/au and associated pages, based on the information obtained and collated from the subscription reports prepared by Kalkine Pty. Ltd. [ABN 34 154 808 312; AFSL no. 425376] on Kalkine.com.au (and associated pages). The principal purpose of the content is to provide factual information only for educational purposes. None of the content in this article, including any news, quotes, information, data, text, reports, ratings, opinions, images, photos, graphics, graphs, charts, animations, and video is or is intended to be, advisory in nature. The content does not contain or imply any recommendation or opinion intended to influence your financial decisions, including but not limited to, in respect of any particular security, transaction, or investment strategy, and must not be relied upon by you as such. The content is provided without any express or implied warranties of any kind. Kalkine Media, and its related bodies corporate, agents, and employees (Kalkine Group) cannot and do not warrant the accuracy, completeness, timeliness, merchantability, or fitness for a particular purpose of the content or the website, and to the extent permitted by law, Kalkine Group hereby disclaims any and all such express or implied warranties. Kalkine Group shall NOT be held liable for any investment or trading losses you may incur by using the information shared on our website.