CSL Ltd earnings results

CommSec CommSec

 

14 August 2019

Results (Reported)

Full Year 2019

Full Year 2018

Change

Sales Revenue (US$m)

8,205.4

7,587.9

+8.1%

Net Profit After Tax (US$m)

1,918.7

1,728.9

+11%

Bloomberg Consensus (US$m)

1,913

 

 

Earnings Before Interest & Tax (EBIT) (US$m)

2,504

2,380

+5.2%

CSL Behring Sales (US$m)

7,187

6,678

+7.6%

Seqirus Sales (US$m)

1,018

910

+11.9%

Final Dividend (US$)

1.00

0.93

+7.5%

CSL Ltd (CSL) sees strong demand drive profits higher

Results

  • Biotechnology firm, CSL Limited (CSL), reported an 11% rise in net profit after tax (NPAT) of US$1.92 billion but grew 17% in constant currency (cc) terms, removes the impact of exchange rate movements. Meanwhile, sales revenue came in at US$8.21 billion, 8% higher than the prior year but was 11% higher in cc terms.

Drivers

  • As has been the case in previous years, a strong lift in sales for its CSL Behring segment has helped drive the improved total sales revenue. CSL Behring focuses on developing and marketing plasma therapies. Sales growth was seen across all regions it operates in with its largest region, North America, improving 11% (cc basis). Growth was slowest in Europe, with a 9% increase. Global demand for immunoglobulins (antibodies) treatments remains strong with sales improving 16% in cc terms to US$3.54 billion and equates to over 40% of total sales. Albumin sales lifted 15% but Haemophilia treatments fell 3%. Among its specialty therapies, Haegarda outperformed with sales soaring 61%.
  • Seqirus, which distributes influenza vaccines, also saw sales and total revenue grow by double digits. Total sales came in just above $1 billion, an improvement of 14% and helped by increased sales of seasonal vaccines. Total revenue growth was strongest in Europe, jumping 51% but fell 4% in Asia Pacific.

Dividend

  • CSL will be paying a final dividend of US$1.00 per share, bringing total FY19 dividend to US$1.85 per share. The final dividend will be paid on 11 October 2019 with the ex-dividend date of 10 September 2019.

Outlook

  • CSL expects continued strong demand for its plasma products while Seqirus is expected to deliver in line with its prior guidance. Sales in China will take a one-off hit in FY20 of US$340-US$370 million, due to the previously announced change to a new sales model.
  • With that in mind, CSL FY20 NPAT is anticipated to grow 7-10% to be in the range of US$2.05B and US$2.11B at constant currency with revenue growth of ~6% predicted.

Share price

  • CSL shares hit all-time highs of $235.66 on the release of the result with the stock climbing ~25% in calendar year 2019.

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