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