The CSL Limited (ASX: CSL) share price is trading lower on Wednesday following the release of its full year results.
In afternoon trade, the biotherapeutics company's shares are down 1% to $295.35.
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How did CSL perform in FY 2021?
For the 12 months ended 30 June, CSL reported a 9.6% in constant currency revenue to US$10,026 million.
This was driven by a 6% increase in CSL Behring revenue and a 30% increase in revenue from its influenza vaccines business, Seqirus. This reflects strong demand for its immunoglobulin portfolio and record demand for seasonal influenza vaccines.
On the bottom line, CSL reported net profit after tax growth of 10% to US$2,307 million. This compares favourably to its guidance of 3% to 8% growth in FY 2021.
However, that wasn't enough to keep the CSL share price from dropping today. Investors have been selling its shares after management warned that its FY 2022 profits would decline by 2.5% to 6.8% on its constant currency result or 5% to 9% on its reported result.
How does this compare to expectations?
Analysts at Goldman Sachs have been looking over the result and have given their feedback.
The broker said: "FY21 modestly ahead of expectations (revenue/EBIT/NPAT +2%/-1%/+2% vs. VA consensus). CSL delivered +10% revenue and +10% earnings growth in a year of widely understood challenges. In the core Behring division, revenues grew +6% (vs. cons +5%), with the entirety of the beat driven by IG."
"Seqirus held up reasonably well after a stellar 1H, although ultimately missed consensus EBIT expectations by -7% despite a modest +1% beat on sales," it added.
As mentioned above, the main drag on the CSL share price appears to be its guidance. Goldman Sachs notes that constant currency net profit after tax of US$2,150 million to US$2,250 million falls short of the analyst consensus estimate of US$2,289 million by 6% to 2%.
And while it acknowledges that management is often conservative with its guidance, these are unprecedented times.
Goldman said: "FY22 net profit is guided to $2,150m-2,250m (vs. FY21 level of $2,375m) on sales guidance of +2-5% (both in constant currency). CSL has stated that FY22 will be a 'transitional year' and, despite 'robust demand', guides to further margin pressure, primarily due to increased plasma costs. Whilst management has a long-standing reputation for conservative guidance, the current conditions are clearly unprecedented."
