CSL share price on watch amid US$1.6b profit

CSL has been battling currency headwinds during the half but still delivered a solid result…

| More on:
A doctor appears shocked as he looks through binoculars on a blue background.

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 has released its half year results this morning
  • The biotherapeutics giant has delivered a US$1.6 billion profit
  • Management has reaffirmed its full year profit guidance

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

This follows the release of the biotherapeutics giant's eagerly anticipated half year results.

CSL share price on watch following results release

  • Total revenue up 19% to US$7,183.5 million
  • Net profit after tax down 8% to US$1,623.2 million
  • Net profit after tax before amortisation (NPATA) in constant currency up 10% to US$1,957 million
  • Interim dividend up 2.9% to US$1.07 per share

What happened during the half?

For the six months ended 31 December, CSL reported a 19% increase in total revenue to US$7,183.5 million.

This was driven by the acquisition of Vifor Pharma, strong growth in immunoglobulin and albumin sales, record levels of plasma collections, strong growth in market leading haemophilia B product Idelvion and key specialty product Kcentra, and a strong performance by influenza vaccines business, CSL Seqirus.

And while CSL's profits were down 8% to US$1,623.2 million, this was in line with consensus estimates and due to currency headwinds and acquisition costs. This was largely.

NPATA on a constant currency basis provides a better reflection of the company's performance. That was up 10% year over year to US$1,957 million.

Management commentary

CSL's outgoing CEO, Paul Perreault, commented:

CSL delivered a solid performance in the first half of the financial year demonstrating the strong fundamentals of the company and the disciplined execution of our patient focused strategy. Our focused investment across our business units underpinned our resilience throughout the pandemic, and as we emerge from it we are starting to deliver positive momentum behind our sustainable growth agenda.

Outlook

Management is expecting more of the same in the second half. As a result, it has reaffirmed its guidance for FY 2023 NPATA in the range of approximately US$2.7 billion to US$2.8 billion at constant currency. Perreault added:

The strong growth we have seen in plasma collections and our immunoglobulins franchise is expected to continue. We are looking forward to launching Hemgenix in the US, an exciting, ground breaking, new therapy that will change people's lives. The rest of our R&D pipeline is in great shape and we look forward to bringing more innovative therapies to patients in the future.

Seqirus continues to perform strongly and will deliver another profitable year. Consistent with the seasonal nature of the business we anticipate, however, a loss in the second half of the year. The integration of CSL Vifor is well advanced and we will focus on driving organic growth and efficiencies across the product portfolio and deliver on our synergy objectives

Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. 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 Healthcare Shares

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

CSL share price leaping higher amid $1.9 billion funding news

ASX 200 investors are bidding up the CSL share price on Wednesday.

Read more »

Two happy scientists analysing test results.
Healthcare Shares

Mesoblast share price rockets 36% on breaking FDA news

ASX investors are sending the Mesoblast share price soaring following promising FDA news.

Read more »

a doctor in white coat and stethoscope stands in front of a building holding an electronic device in his hands.
Healthcare Shares

Guess which ASX 200 healthcare share is jumping 7% on a guidance update

This healthcare share is performing better than expected in FY 2024.

Read more »

a biomedical researcher sits at his desk with his hand on his chin, thinking and giving a small smile with a microscope next to him and an array of test tubes and beackers behind him on shelves in a well-lit bright office.
Earnings Results

Chemist Warehouse merger target Sigma reports 149% FY24 profit jump

This could be the last set of results from Sigma as we know it if its merger is approved.

Read more »

Cropped shot of an attractive young female scientist working on her computer in the laboratory.
Healthcare Shares

1 ASX healthcare stock that looks severely undervalued

I think this stock looks too cheap to miss.

Read more »

Stethoscope with a piggy bank and hundred dollar notes.
Healthcare Shares

Own Medibank shares? Here's why it's a rewarding day for you

Shareholders are getting a healthy boost today.

Read more »

Health professional looking at a laptop.
Healthcare Shares

Are CSL shares a must-buy in March?

Let's see what analysts are saying about this high-quality company.

Read more »

A woman jumps for joy with a rocket drawn on the wall behind her.
Healthcare Shares

This ASX healthcare stock is up 72% on FDA news and 'historic moment'

Huge gains are been recorded by this stock on Tuesday. But why?

Read more »