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- Biotech giant CSL (CSL) has increased its 2020 profit outlook on the back of a healthy half-year financial report
- The report highlighted an 11 per cent increase in both revenue and profits compared to the period the year before
- CSL pulled in roughly $7.3 billion in revenue and $1.82 billion in net profit after tax for the half-year
- The growth was underpinned by strong sales of CSL’s immunoglobulin products
- On the back of the financial report, CSL has upgraded its full-year profit guidance to between $3.14 billion and $3.23 billion
- CSL shares saw a big spike this morning but have since settled
- Currently, shares are up just under two per cent and trading for $327 each
Medical biotech giant CSL (CSL) is going from strength to strength with the release of a stellar half-year report today.
The company has already been cashing in off coronavirus scares over the past month as punters eye out stocks in the race for finding a cure. Today, CSL stocks spiked early to an all-time intraday high of $335.99.
The company pulled in roughly $7.3 billion in revenue over the half-year from June to December 2019, up 11 per cent on the same time period the year before. Of this revenue, $1.86 billion translated in net profit after tax — also 11 per cent higher than this time last year.
A key driver of CSL’s sales growth was strong sales numbers of its immunoglobulin (Ig) products, which increased by 26 per cent over the same time the year before. In fact, almost $5.8 billion of the company’s total revenue came through its CSL Behring business, which specialises in the Ig product sales.
CSL Seqirus, the company’s flu vaccine business, increased sales by nine per cent to roughly $1.5 billion in response to increased demand for season flu vaccines.
The increase in sales and profit was accompanied by two pieces of news that every investor wants to hear: higher dividends and upgraded profit forecasts.
CSL will be shelling out a half-year dividend of US$0.95 (roughly A$1.42) per share — up 18 per cent on the company’s previous interim dividend of US$0.85 per share.
Further, the healthy six months has seen CSL boost its profit guidance by just under three per cent. At the end of the 2019 financial year, CSL was expecting between US$2.05 billion and $2.11 billion (A$3.05 billion and A$3.14 billion) in profits for 2020. Today, this figure has been bumped up to between $2.11 billion and $2.17 billion (A$3.14 billion and A$3.23 billion) for the full year.
CSL CEO and Managing Director Paul Perreault said growth in sales for the company’s PRIVGEN and HIZENTRA products — both part of CSL’s Ig portfolio — underpinned the strong half-year.
“Our largest franchise, the immunoglobulin portfolio, performed exceptionally well, with PRIVIGEN sales growing 28 per cent and HIZENTRA sales up 37 per cent,” Paul said.
“Our results reflect the focused execution of our strategy, robust demand for our differentiated medicines and a deep, inherent passion for meeting the evolving needs of our patients,” he said.
After the sudden uptake this morning, CSL shares have settled somewhat at lunchtime. Nevertheless, around midday AEDT, CSL shares are still 1.76 per cent up and trading at $327.71 each. The company’s market cap is just shy of $150 billion.
