CSL share price on watch amid 20% profit jump

This biotech giant's half-year profits just topped US$2 billion

| More on:
Shot of a young scientist using a digital tablet while working in a lab.

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

The CSL Ltd (ASX: CSL) share price will be on watch this morning.

That's because the biotechnology giant has just released its half-year results.

Let's see how the company performed during the six months ended 31 December.

CSL share price on watch following half-year results

  • Revenue up 11% in constant currency to US$8.05 billion
  • Net profit after tax in constant currency up 20% to US$1.94 billion
  • Net profit after tax before amortisation (NPATA) in constant currency up 13% to $2.06 billion
  • Interim dividend up 12% to A$1.81 per share
  • Guidance reaffirmed for FY 2024

What happened during the half?

During the first half, CSL reported an 11% lift in constant currency revenue to US$8.05 billion.

This was driven by a 14% increase in CSL Behring revenue to US$5,238 million, a 2% increase in CSL Seqirus revenue to $1,804 million, and a US$1,011 million contribution from the new CSL Vifor business.

In respect to the key CSL Behring business, its growth was underpinned primarily by strong demand for immunoglobulins (Ig). Management notes that Ig product sales increased 23% to US$2,757 million thanks to strong growth across all geographies driven by global plasma supply and patient demand.

The good news is that plasma collection conditions remain strong, and the cost of collections have continued to trend down following a post-COVID spike. In addition, a new roll out plan for the RIKA plasmapheresis devices has been developed. Deployment across its US fleet is expected over the next 18 months.

CSL continued to invest in its research and development (R&D) during the half. It advised that its R&D expenses were US$669 million, up 11% year on year.

Management commentary

CSL's CEO and managing director, Dr. Paul McKenzie, was pleased with the "strong" half. He commented:

Our strong first-half result for the 2024 financial year was driven by CSL Behring's exceptional performance across its portfolio, especially immunoglobulins. The plasma initiatives we have implemented are starting to drive gross margin recovery. CSL Seqirus achieved solid growth in a challenging season. Its portfolio of differentiated products outperformed the market. For CSL Vifor we are well prepared for the transitioning iron market.

Outlook

The good news for the CSL share price is that management has reaffirmed its guidance for FY 2024. Dr. McKenzie said:

For FY24, I am pleased to reaffirm our previous guidance. CSL's underlying profit, NPATA is expected to be in the range of approximately $2.9 billion to $3.0 billion at constant currency, representing growth over FY23 of approximately 13-17%6

The company's CEO also remains very positive on the future, highlighting that "CSL is in a strong position to deliver annualised double-digit earnings growth over the medium term."

The CSL share price is down 5% over the last 12 months.

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 recommended CSL. 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

Shot of a young scientist using a digital tablet while working in a lab.
Share Gainers

If you'd put $20,000 in this ASX healthcare stock during COVID-19, you'd have $257,000 now

You could have become filthy rich in just 4 years. Just think about that.

Read more »

Shot of a young scientist using a laptop while conducting research in a laboratory.
Healthcare Shares

Sonic Healthcare shares hit 52-week low as analysts take a scalpel to targets

Analysts have sharpened the knives after the latest blood-sucking half year at Sonic Healthcare.

Read more »

Shot of a young scientist using a digital tablet while working in a lab.
52-Week Highs

Medibank share price hits 52-week high on US tech partnership

This private health insurer's shares are scaling new heights today. But why?

Read more »

Shot of a scientist using a computer while conducting research in a laboratory.
Healthcare Shares

What is the dividend growth rate of CSL stock?

CSL's dividends are worth more than what meets the eye.

Read more »

Shot of a young scientist looking stressed out while working on a computer in a lab.
Earnings Results

Sonic share price sinks after first-half profit crash

The healthcare company's profits have almost halved.

Read more »

Shot of a scientist using a computer while conducting research in a laboratory.
Healthcare Shares

The market is placing 'zero value' on this ASX 200 stock's booming pipeline

Up 78% in a year, these experts reckon there’s more outperformance to come from this top ASX 200 stock.

Read more »

Shot of a senior scientist looking stressed out while working in a lab.
Healthcare Shares

This ASX 200 healthcare share is diving 13% as short sellers take aim

A short seller is describing this company's Daybue product as a 'flop'.

Read more »

Happy, tablet or doctor in a laboratory with research results or positive feedback after medical data analysis. Smile, vaccine or healthcare worker reading or working on futuristic science innovation.
Healthcare Shares

Guess which ASX 300 healthcare stock is surging 13% on FDA news

Here's what's getting investors excited today.

Read more »