CSL [ASX:CSL] Presents Half Year Results, Profit Reaches $1.62 Billion

Multinational biotech CSL [ASX:CSL] released its half-year 2023 results to the markets earlier on Tuesday. The company revealed its net profit after tax had reached $1.62 billion — 7% less than last year. However, this was impacted by one-off costs associated with the major acquisition of Vifor Pharma.

The biotech says Vifor lends a 15% uptick in revenue growth and has reaffirmed its existing guidance, which is expected to balance out with no further costs linked to Vifor to consider.

Today the group’s share price was lifted slightly from its last closing price, worth $308.84 at the time of writing.

CSL has moved strongly over the 12 months, going up 27%.

Source: tradingview.com

Revenue raises for CSL in the second half 2023

Today the biotech reported $1.62 billion in net profit after tax for the first half of the fiscal 2023 year. It was a 7% decrease on the profit earned a year before. However, this does include one-off costs that were incurred through its acquisition of Vifor Pharma.

CSL’s underlying profit came to a total of $1.82 billion, a 10% increase on the period before on a constant currency basis.

Revenue raised 19% to $US7.2 billion, boosted by strong growth in CSL’s most popular products.

With Vifor added to the company’s ranks and contributing to five months of earnings in the first half, the company can now incorporate a further 15% in revenue growth, with integration already underway and cost synergies also on track.

The group reported NPATA (net profit after tax) earnings per share of $3.77 and interim dividends of US$1.07 per share (AU$1.55 a share and a boost of 9%).

CSL said there was strong growth in immunoglobulin and albumin sales (US$2.227 and $585 million, respectively), and the company hit new record levels in plasma collections (up 36%).

There was found to be strong growth in the market for its haemophilia B product IDELVION and KCENTRA as well as influenza vaccine CSL Seqirus, which brought in US$1.738 billion, an increase of 9% in sales.

CSL has secured a licence agreement for its mRNA vaccine technology, and the FDA has approved HEMGENIUX.

Mr Paul Perreault, CSL’s CEO who is soon to be replaced by COO Paul McKenzie, commented:

‘CSL delivered a solid performance in the first half of the financial year demonstrating the strong fundamentals of the company and the disciplined execution of our patient focused strategy.

‘Our focused investment across our business units underpinned our resilience throughout the pandemic, and as we emerge from it we are starting to deliver positive momentum behind our sustainable growth agenda.’

The group believes plasma collections will continue to grow and immunoglobulins will continue strong.

HEMGENIX is due to launch in the US, Seqirus is expected to deliver another profitable year, and CSL will be able to take full advantage of Vifor going forward.

CSL has reaffirmed its guidance for FY23, with 28–30% growth in revenue expected and 13–18% growth in NPATA.

Regards,

Mahlia Stewart

For The Daily Reckoning

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