CSL share price on watch following FY22 results

How did CSL perform in the last financial year?

| More on:
Two lab technicians wearing white coats discuss results they see on a computer screen.

Image source: Getty Images

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Key points

  • CSL shares are in focus after the global biotech dropped its full-year results this morning
  • The company booked NPAT of $2,236 million, down 6% on FY21
  • CSL maintained its full-year dividend of US$2.22 per share

The CSL Limited (ASX: CSL) share price will be one to watch today.

This comes after the global biotherapeutics company released its highly anticipated full-year results.

CSL share price on watch after delivering a mixed performance

This morning, CSL delivered its FY22 results for the 12 months ending 30 June 2022. Here are some of the key takeaways.

  • Total revenue up 3% in constant currency (CC) to US$10,668 million
  • Gross profit down 1% CC to US$5,786 million
  • Net profit after tax (NPAT) down 6% CC to US$2,236 million
  • Full-year dividend of US$2.22 per share, flat year on year
  • FY23 guidance: NPAT to grow between 7.6% to 11.8% in constant currency on FY22 NPAT

What happened in FY22?

CSL advised that its FY22 performance was in line with expectations despite a difficult global environment.

Under the CSL Behring portfolio, immunoglobulin and albumin sales were limited by COVID-constrained plasma collections in FY21. However, this didn't stop CSL Behring achieving sales of US$8,598 million, up 2%.

CSL's Seqirus business experienced a strong surge in seasonal influenza vaccines, up 16%. A record volume of around 135 million doses was distributed around the world. As a whole, Seqirus revenue jumped to US$1,964 million, up 13% from the prior corresponding period.

The company also updated investors its plasma collection issues.

CSL noted that volume has now exceeded pre-pandemic levels following operating and marketing initiatives that were previously undertaken.

The company opened 27 new centres to attract lapsed and new donors through its doors in FY22.

Furthermore, CSL carefully managed costs and significantly boosted its investment in research and development to US$1,156 million, up 17%.

Management commentary

CSL's CEO and managing director, Paul Perreault, said:

CSL has delivered a good result at the top end of our guidance, demonstrating our resilient performance against the ongoing challenges presented by the global COVID pandemic.

Despite the uncertain environment, we have carefully managed our costs and significantly boosted our investment in Research and Development, supporting our commitment to providing innovative medicine to patients.

Perreault went on to add:

During FY22, we announced the agreement to acquire Vifor Pharma and we are excited that this acquisition recently closed on 9 August 2022. CSL Vifor adds a high-value and complementary portfolio of products and market leading positions in renal disease and diseases of iron deficiency to CSL.

I remain confident in the value CSL Vifor will bring to CSL shareholders, adding to the sustainability of CSL's growth.

What's the outlook for FY23?

One thing that could boost the CSL share price today is its guidance for FY23.

Management is forecasting a strong mid-term outlook as COVID recedes. It also highlighted a promising cluster of R&D programs that are nearing completion.

Perreault commented: 

We have continued to invest in all facets of our business and I am very encouraged by the improved momentum we are seeing in our core immunoglobulin franchise.

The strong growth we have seen in plasma collections is anticipated to continue as COVID recedes and underpin strong future sales growth in our core plasma therapies. The current higher cost of plasma is also expected to prevail into FY23.

We anticipate our influenza business, CSL Seqirus, to deliver another strong year driven by demand for its differentiated products.

CSL's net profit after tax for FY23 is anticipated to be approximately $2.4 billion to $2.5 billion at constant currency, returning to strong sustainable growth. This excludes CSL Vifor earnings and costs associated with the acquisition.

CSL share price snapshot

Since the beginning of 2022, the CSL share price has moved in circles to post a small gain of 2%.

For context, the benchmark S&P/ASX 200 Index (ASX: XJO) has lost around 4.5% over the same timeframe.

CSL is the ASX's largest healthcare company and presides a market capitalisation of approximately $142.78 billion.

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. has positions in 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 Scott Phillips.

More on Earnings Results

Hand of a woman carrying a bag of money, representing the concept of saving money or earning dividends.
Earnings Results

Which ASX shares delivered the biggest profit jumps of the earnings season?

These companies revealed at least a 70% profit boost in their latest earnings reports.

Read more »

A man and woman sit next to each other looking at each other and feeling excited and surprised after reading good news about their shares on a laptop.
Earnings Results

Why this ASX 300 share is leaping 14% despite being branded a 'sell'

Falling profits are putting investors off the fund manager.

Read more »

A young male ASX investor raises his clenched fists in excitement because of rising ASX share prices today
Technology Shares

Life360 share price rockets 24% after smashing FY23 earnings expectations

This tech stock delivered a very strong result this morning. How strong was it?

Read more »

a man in a shirt and tie holds his chin in thoughtful contemplation and looks skywards as if thinking about something while a graphic of a road with many ups and downs unfurls behind him.
Earnings Results

What's with the Neuren Pharmaceuticals share price today?

The full market reaction to the Daybue developer's FY23 earnings report won't be seen until tomorrow.

Read more »

Two workers at an oil rig discuss operations.
Earnings Results

2 ASX energy shares going gangbusters on today's earnings results

The ASX energy shares are drawing investor interest today after releasing their half-year earnings results.

Read more »

Man pointing at a blue rising share price graph.
Earnings Results

This ASX 300 stock just jumped 12%! Here's why

The ASX 300 stock is impressing investors with its half-year earnings results.

Read more »

Shot of a scientist using a computer while conducting research in a laboratory.
Earnings Results

Mesoblast share price tumbles on US$32.5m half-year loss

This biotech continues to burn cash.

Read more »

Man and woman sitting at casino table playing poker
Earnings Results

Star Entertainment share price jumps 5% on strengthening outlook

ASX 200 investors are bidding up the Star Entertainment share price on Thursday.

Read more »