CSL Ltd (ASX: CSL) shares have lifted more than 2% into the green this past month of trade, outpacing the broader market in that time.
The biotech giant held its annual general meeting (AGM) on Tuesday, and its chair and CEO made several key remarks.
The announcement wasn't labelled as price-sensitive, but there are notable takeouts intelligent investors are paying attention to.
Both leaders made it clear that the company's outlook remains robust despite some shareholder concerns around remuneration and recent strategic shifts.
Here's what investors should know from the AGM that could impact CSL shares in FY25.
CSL shares in focus following AGM
CSL's CEO, Dr Paul McKenzie, gave a lengthy address that covered an equally lengthy list of subjects for the biotech's shareholders.
McKenzie reaffirmed the company's financial guidance for FY25, with revenue growth expected to land between 5% to 7%.
Net profit is also projected to grow by 10% to 13%, reaching US$3.2 – $3.3 billion.
Dr McKenzie also said CSL is well-positioned to "deliver annualised double-digit earnings growth over the medium term".
I'd say this is an important point as many of the long-term price targets for CSL shares are based on this pace of growth being sustained.
Aside from the financials, the CEO continued investment in research and development, focusing on expanding product offerings within its core therapeutic areas.
Meanwhile, chair Brian McNamee also addressed the meeting and made a particular note on CSL Vifor.
CSL Vifor, which saw recent acquisitions to boost its nephrology and iron markets, aims to maintain growth in European markets while addressing pricing challenges.
It has now been over two years since we closed the acquisition of Vifor Pharma. We saw then, as we do now, a company with the capabilities, competencies and adjacencies to CSL, that would contribute to our long-term growth agenda.
This view has not changed, but shareholders will be aware that the business has experienced several near-term challenges. We were prepared for some of these, but others were unexpected.
This is disappointing, but I am confident that the leadership group have the right plans in place to deliver growth from CSL Vifor over the long-term.
The acquisition may or may not be a major growth lever for the company moving forward. But CSL's chair certainly believes it will be.
Longer-term, the focus remains the same as it always has for the biotech giant. Bringing medicines to those in need. Per McNamee:
Our investment has laid the foundation, and with the right skills and talent, our people will maximise the value from them. This will put us in an excellent position to continue to deliver our medicines to our patients whilst maintaining sustainable profitable growth into the future.
This will come from the therapeutic areas we focus on. There remains significant unmet need across these: patients who are not being helped and communities that need protection against infectious disease.
Shareholder concerns on remuneration
If the performance of CSL shares in early FY25 is anything to go by, shareholders mightn't be that encouraged. The stock is down more than 2% since then.
McNamee addressed anticipated shareholder dissent over executive remuneration, balancing the talk of creating value and the need for competitive global pay structures.
As a multinational corporation, it operates across several jurisdictions, but its executives are primarily located in the United States.
We compete for talent in that context: it is essential to our performance and our long-term growth. Our remuneration structure needs to attract and retain talented people across the globe: including those who can navigate the complex science and manufacturing that underpins CSL.
While CSL's board believes in the current remuneration structure's alignment with shareholder interests, McNamee acknowledged the discontent:
Your Board strongly believes our overall remuneration framework is aligned with this goal, and fit for the purpose of attracting top tier, global leaders who will steer the next phase of growth for our shareholders.
But we hear your discontent this year with some aspects of our approach and, of course, I'm disappointed in that. I want you to know that we are listening, and we will carefully consider the feedback we receive.
Foolish takeaway
There's several talking points that could impact CSL shares following the biotech's AGM. Management remains constructive on the future, including divisions like CSL Vifor.
In the last 12 months, the stock is up 27%.
