The CSL Limited (ASX: CSL) share price is climbing higher today following the release of its annual general meeting presentation.
At the time of writing, the biotherapeutics company's shares up 1.5% to $302.96.
What was in CSL's annual general meeting update?
As well as the usual rundown on its performance over the last 12 months and board changes, CSL provided the market with a trading update and its expectations for FY 2021.
According to the release, trading conditions have been relatively mixed for CSL this financial year because of the pandemic.
Management expects its Seqirus vaccines business to continue to benefit from its differentiated products and strong demand for influenza vaccines. The latter is being driven in part by Governments wanting to protect their populations from contracting COVID and influenza.
The company's Albumin sales are expected to normalise following the successful transition to its new business model in China.
Management is also expecting strong demand for its plasma and recombinant therapies to continue. However, due to COVID restrictions, which are expected to restrain its ability to collect plasma, the costs of collection are expected to increase.
The good news is that the company has a number of initiatives underway to mitigate the impact.
What about research and development?
CSL also provided an update on its research and development (R&D).
While its R&D response to COVID, as well as new initiatives, will put upward pressure on its R&D expense, it is still expected to be within its guidance range of 10-11% of revenue.
Speaking of guidance, CSL has updated its profit guidance for FY 2021.
It now expects revenue growth in the range of 6 to 10% in FY 2021, with net profit after tax of approximately $2.170 to $2.265 billion in constant currency. The latter implies growth of 3% to 8%.
This is a slight tightening of the range advised with its FY 2020 results of 0% to 8%.
