CSL Limited (CSL)

CommSec CommSec

 

12 February 2020

Results 

Half Year 2020

Half Year 2019

Change

 Sales Revenue (US$m)

4,709

4,343

+8.4%

CSL Behring Sales (US$m)

3,768

3,468

+8.7%

Seqirus Sales (US$m)

941

874

+6.8%

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

1,632

1,553

+5.1%

Net Profit After Tax (US$m)

1,248

1,161

+7.5%

Bloomberg Consensus (US$m)

1,242

 

 

Interim Dividend (US$)

0.95

0.85

+11.8%

CSL Ltd (CSL) upgrades profit guidance on solid first half result 

What happened?

  • Australia’s largest listed healthcare company, CSL Limited (CSL) has released its profit results for the first half of financial year 2020. The company, which makes therapies for a wide range of rare blood diseases and vaccines, reported a lift in net profit of 7.5% to US$1.25 billion. Results are also reported in constant currency (cc) which removes exchange rate fluctuations. Taking cc into account, net profit was US$1.29 billion over the half and 11% higher than the previous year. Sales revenue also rose 8.4% to US$4.71 billion and was 10% higher in cc terms.
  • CSL is lifting its interim dividend to US$0.95 per share with the ex-dividend date, the cut-off date to be eligible to receive the dividend, on 11 March 2020. 

Why did it happen?

  • Sales for its largest division, CSL Behring (focusses on treatments for blood and immune diseases), helped push its overall results higher. The CSL Behring division saw sales of US$3.8 billion which was an improvement of 10% at cc. Sales for its immunoglobulins (antibodies to protect against bacteria or viruses) portfolio was the standout with a 26% jump in sales to US$1.99 billion. Specialty sales saw a more modest lift helped by double digit growth for Kcentra (anti-bleeding treatment used in surgeries).
  • Sales for its Albumin (protein made by liver) product was down 33% in cc terms, in line with company expectations, as CSL shifts its distribution in China to a more direct model. The decline is expected to be a one-off as it pushes back the timeframe for sales to be recognised but the switch will have the benefit of less reliance on third party suppliers moving forward.
  • Seqirus, which focusses on flu vaccines, also managed to lift sales across its major regions with sales totalling US$941 million, up 6.8% (+9% in cc terms). The result was helped by new products (Flucelax and Fluad) being released to market.  

Where to now?

  • Strong demand for CSL’s therapies are expected into the second half of FY20, leading the company to upgrade its full year NPAT guidance. It is now expected to be in the range of US$2.11 billion and US$2.17 billion. This equates to profit growth of 10-13% at cc on the previous year.
  • Albumin sales are also expected to return to a more normalised level in FY21.
  • The CSL share price hit a fresh record high of $335.99 on the market open following the profit announcement but has given back some of those gains. Still, the stock has climbed ~19% already in 2020 and ~75% higher than when it released its first half results in 2019.

 


Tags:

CSL

Start trading today with Australia's leading online broker

Join now >

Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 ("CommSec") is a wholly owned, but non-guaranteed, subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 ("the Bank") and both entities are incorporated in Australia with limited liability.
This information is directed and available to and for the benefit of Australian residents only and is not a recommendation or forecast.

This information has been prepared without taking account of the objectives, needs, financial and taxation situation of any particular individual. For this reason, any individual should, before acting on the information on this site, consider the appropriateness of the information, having regards to their own objectives, needs, financial and taxation situation, and, if necessary, seek appropriate independent financial, foreign exchange and taxation advice. CommSec, and its related bodies corporate, do not accept any liability for any loss or damage arising out of the use of all or any part of this information. We believe that this information is correct as at the time of its compilation, but no warranty is made as to its accuracy, reliability or completeness.

 

Disclaimer

This site is directed and available to and for the benefit of Australian residents only. © Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 ("CommSec") is a wholly owned, but non guaranteed, subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 and both entities are incorporated in Australia with limited liability.

By clicking on the "Download the CommSec App" buttons above, you will be directed to itunes.apple.com or play.google.com. These sites are not affiliated with CommSec and may offer a different Privacy Policy and level of security.

Top