How is the CSL share price performing against its sector in 2022?

It has been a tough 2022 so far for CSL shareholders…

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Key points

  • CSL shares edge 0.09% lower to $265.47 at Monday's closing bell
  • The company's shares have tracked relatively in line with the S&P/ASX 200 Health Care sector in 2022
  • However, CSL shares have fared slightly better when looking at a 12-month comparison

The CSL Limited (ASX: CSL) share price has wobbled since the beginning of the year.

This has been caused by a challenging environment brought about by the ongoing impacts of the global COVID pandemic.

At Monday’s market close, the global biotech’s shares finished 0.09% lower to $265.47.

Below, we take a look at the company’s most recent performance, and comparison against its sector in 2022.

What’s happened to CSL recently?

On February 16, CSL provided investors with its half-year results for the 2022 financial year. The CSL share price rose 8.5% on the back of the details.

The company noted that its immunoglobulin portfolio faced headwinds caused by industrywide constraints on collecting plasma in FY21. This was due to the global pandemic, with government-mandated restrictions causing foot traffic numbers to fall.

Under the CSL Behring banner, sales of its leading subcutaneous immunoglobulin product, Hizentra, fell 9%. Nonetheless, this contributed to overall revenue of US$4.4 billion for the CSL Behring portfolio, down 2% on H1 FY21.

Meanwhile, its Seqirus business experienced a strong surge in seasonal influenza vaccines, up 20%. A record volume of around 110 million doses was distributed around the world. As a whole, Seqirus revenue jumped to US$1.7 billion, up 17% from the prior corresponding period.

In addition, CSL responded by implementing multiple initiatives in its plasma collections network. Programs included using social media influencers, speeding up the donation sign-up and check-in process, and paying donors more for blood.

Investors were also updated on the company’s plasma collection numbers, with volume up 18% over H1 FY21.

CSL opened 18 new facilities in the first half of FY22 to attract lapsed and new donors through its doors. For the remainder of the financial year, the company plans to open another 35 centres, expanding its presence, mostly across the United States.

Also in February, CSL announced the completion of a share purchase plan. The SPP – first announced in December – raised $750 million for CSL’s acquisition of Vifor Pharma.

How does the CSL share price compare to the health sector?

Over the last 12 months, the CSL share price is more or less flat, but is down almost 8.7% this year to date. The company’s shares hit a 52-week high of $319.78 in November 2021, before moving in circles.

In contrast, the S&P/ASX 200 Health Care Index (ASX: XHJ) has lost 2.6% from this time last year, and is down 11.3% in 2022. The sector also registered a record high of 48,213 points in late-August.

Both the CSL share price and broader health index are down around 3.5% over the past month.

As you can see, CSL shares are slightly tracking ahead of the Health Care Index. The latter has failed to take off this year amid the expected rise in interest rates which weakens investor sentiment.

Based on today’s price, CSL commands a market capitalisation of roughly $127.88 billion, with approximately 481.71 million shares on issue.

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns and has recommended CSL Ltd. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

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