CSL Limited earnings results

CommSec CommSec

 

13 February 2019

Results (US$m) Reported

Half Year 2019

 Half Year 2018

Change

Sales

4,343

3,999

+8.6%

Total Revenue

4,505

4,147

+8.6%

EBIT

1,553

1,476

+5.2%

EBIT Margin (%)

34.5

35.6

-110bps

EBITDA

1,719

1,617

+6.3%

Net Profit after Tax 

1,161

1,086

+7%

Interim Dividend (US$)

0.85

0.79

+8%

CSL Ltd (CSL) reaffirms FY19 guidance after strong 1H sales 

 

Results

  • Blood products and vaccine group, CSL Ltd, has lifted its reported total revenue by 8.6% to US$4.5 billion. The same measure grew by 11% to US$4.59 billion in constant currency (cc) terms, which removes the impact of exchange rate movements. Reported net profit improved by 7% to roughly US$1.2 billion or 10% in cc terms.

Drivers

  • CSL consists of two main segments, CSL Behring which manufactures, markets and develops plasma therapies. The second is Seqirus which manufactures and distributes influenza vaccines. Sales for CSL Behring were higher by 8% to US$3.5 billion driven by 13% growth in its largest market, North America. Sales in Asia Pacific - its third largest region - fell 6%. Immunoglobulin (antibodies) treatments saw sales growth of 12% (cc basis) to US$1,708 million. Haemophilia and Albumin sales were down 2% and 4% respectively. Specialty products saw a strong pick up in sales with as 19% (cc) increase in sales of Kcentra (an anti-bleeding treatment used during surgery) and a more than tripling of sales in Haegarda.
  • Seqirus saw a 21% (cc) increase to revenue, up to US$949 million. Growth was strongest in North America and Europe, which saw an increase of 53%. By contrast Asia Pacific sales fell 11%.

Dividend

  • CSL will be paying an interim dividend of US$0.85 per share, up 8% on the previous year. If converted into Australian dollars, the interim dividend is approximately $1.20, up 20%. The ex-dividend date will be 13 March 2019 and it will be paid on 12 April 2019.

Outlook

  • Following the release of its half year report, CSL now expects FY19 net profit after tax to be at the upper end of its target range of US$1,880-$1,950 million.

Share price

  • The market’s initial reaction has been negative, as investors held greater expectations for its guidance. CSL shares tumbled by as much as 3.9% to be among the main weights on the broader ASX200 index for the day.   

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