The CSL Ltd (ASX: CSL) share price is under pressure on Tuesday morning.
At the time of writing, the biotherapeutics company's shares are down 3% to $300.03.
CSL share price tumble on results
Investors have been selling the company's shares this morning in response to its full year results for FY 2024.
As we covered in detail here, in constant currency, CSL reported an 11% increase revenue to US$14.8 billion and a 15% jump in net profit after tax before amortisation (NPATA) to US$3.01 billion.
While this was driven by positive performances from across the company, the star of the show was undoubtedly the key CSL Behring business.
It reported a 14% increase in total revenue to US$10.61 billion thanks to strong demand for Immunoglobulins (Ig). Management advised that Ig product sales lifted 20% in FY 2024 to US$5.666 billion thanks to strong growth across all geographies.
The even better news is that management expects this strong form to continue. CSL's CEO, Dr. Paul McKenzie, commented:
The momentum in our CSL Behring business is expected to continue to be underpinned by the strong patient demand in our immunoglobulins franchise.
But the good news doesn't stop there for this key business. Management notes that margin improvements are on the way, which will boost profitability in CSL Behring. Dr McKenzie adds:
We have a number of initiatives underway in plasma collections and our manufacturing operations that will continue to drive efficiencies and lead to an improving CSL Behring gross margin.
And let's not forget its "transformational" HEMGENIX product for haemophilia B patients. This could be a big boost to sales in the coming years according to its CEO. He said:
We are excited about the potential growth in our transformational gene therapy product for haemophilia B patients, HEMGENIX and we are looking forward to bringing our monoclonal antibody, Garadacimab, for the treatment of HAE, to market in FY25, subject to receiving regulatory approvals.
Guidance for FY 2025
The sum of the above is that management is guiding to the following for FY 2025:
- Revenue growth to be approximately 5% to 7% over FY 2024 in constant currency.
- NPATA to be in the range of approximately US$3.2 billion to US$3.3 billion in constant currency. This represents growth of 10% to 13%.
How does this compare to expectations?
CSL delivered on expectations in FY 2024 but may have underwhelmed with its guidance.
Ahead of the release of its results, Morgans said:
Not expecting major surprises. We view FY24 constant currency guidance (NPATA US$2.9-3.0bn, +13-17%; 9-11% revenue growth) as achievable and look for FY25 growth guidance to be similar (NPATA +13-17%; US$3.3-3.5bn).
This is likely to explain why the CSL share price is having a tough time this morning.
