Earnings pump at CSL

Good performance from blood and pharma company

An “exceptional” performance from its Behring division has helped CSL post an increase in half year underlying earnings of more than 10 per cent, with managing director Paul McKenzie doubling down on the full year profit outlook.

The blood and pharmaceutical products company on Tuesday announced revenue of $US8.05bn ($12.36bn) for the half year, up 11 per cent on a constant currency basis, while net profit after tax and amortisation – the company’s preferred measure – was 11 per cent higher at $US2.02bn.

Dr McKenzie said the strong result was “driven by CSL Behring’s exceptional performance across its portfolio, especially immunoglobins’’.

“The plasma initiatives we have implemented are starting to drive gross margin recovery,’’ he said. “CSL Seqirus achieved solid growth in a challenging season. Its portfolio of differentiated products outperformed the market.”

CSL Behring’s revenue came in at $US5.24bn for the half, up 14 per cent compared to the previous corresponding period.

The company said immunoglobin sales were up 23 per cent to $US2.76bn, with strong growth across all geographies.

The company said plasma collections remained strong, with the cost of collection continuing to trend down.

CSL Seqirus grew revenue by 2 per cent to $US1.8bn, with its FLUAD flu vaccine increasing sales 14 per cent.

“This growth was achieved against a backdrop of reduced rates of immunisation and highlights the strength of CSL Seqirus’ differentiated product portfolio,’’ the company said.

CSL Vifor posted revenue of $US1.01bn and the company said it had “dampened our near-term growth aspirations for CSL Vifor’’.

Dr McKenzie, however, said the company was “very confident in delivering” on the promise of Vifor but “the timing, it will be a little bit longer than we had planned”.

Dr McKenzie said while CSL Seqirus had performed well in a challenging season, “due to the seasonality of this business we anticipate it to post a loss in the second half of the fiscal year’’.

Dr McKenzie said the failure of potential blockbuster cardiac arrest compound CSL112 to meet its desired research endpoints, which the company announced on Monday, was naturally a disappointment, but the 18,200person trial was executed well, and the company’s R&D pipeline remained robust.

CSL reaffirmed its full year net profit guidance of $US2.9bn-$US3bn, up 13-17 per cent over the previous corresponding period.

UBS analysts said they were encouraged by the strong sales performance in immunoglobins and the 10 per cent reduction in the cost of plasma.

CSL will pay an interim dividend of $US1.19 per share on April 3, up 12 per cent in Australian dollar terms.