The CSL Limited (ASX: CSL) share price could be on the move on Wednesday following the release of the biotherapeutics giant's full year results.
How did CSL perform in FY 2019?
For the 12 months ended June 30, CSL posted revenue of US$8,539 million and net profit after tax of US$1,919 million. This was an 11% and 17% constant currency increase, respectively, on FY 2018's results. It is also at the upper end of its guidance range of US$1,880 million to US$1,950 million, just as management had promised.
A key driver of growth during FY 2019 was its Immunoglobulins sales once again. They rose 16% on the prior corresponding period to US$3,543 million. Combined with a 15% increase in Albumin sales and a 6% lift in Speciality sales, the CSL Behring business reported an 11% jump in total revenue to US$7,343 million in FY 2019.
This growth was supported by its fledgling Seqirus business which posted a 12% increase in total revenue to US$1,196 million. A 19% increase in the sales of seasonal influenza vaccines helped drive this strong result.
The company's chief executive officer and managing director, Paul Perreault, was pleased with the company's performance in FY 2019.
He said: "I am pleased to report a robust result given it follows a very strong comparative period. Our largest franchise, the immunoglobulin portfolio, is performing exceptionally well, with Privigen sales growing 23% and Hizentra sales up 22%. In part, driving the growth in demand has been our new CIDP (Chronic Inflammatory Demyelinating Polyneuropathy – a debilitating neurological disorder) indication for Hizentra and the inclusion of this indication for Privigen in the US market."
Outlook.
Looking ahead, Mr Perreault appears confident that the company can build on this and deliver more solid growth in FY 2020.
He advised: "Demand for CSL's plasma and recombinant products continues to be strong. We expect to again outpace the market in growing plasma collections and plan to open around 40 new collection centers in FY20."
The chief executive also advised that the Seqirus business is "expected to continue to perform well and deliver in line with prior guidance, benefiting from product differentiation and process improvement."
As a result, the company's net profit after tax for FY 2020 is anticipated to be in the range of approximately $2,050 million to $2,110 million at constant currency. This represents annual growth of approximately 7% to 10% and takes into account the one-off financial headwind of transitioning to a new model of direct distribution in China.
