From The Australian - FYI CSL profit hit by purchase of flu...

From The Australian - FYI

CSL profit hit by purchase of flu vaccine business


Scientist at work.

• The Australian
• 10:19AM August 17, 2016
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• Michael Roddan
  
  Reporter
  Melbourne
  @michaelroddan
  

CSL has revealed a 10 per cent drop in annual profit in its centenary year as the costs associated with its purchase of the Novartis influenza vaccine hamper its headline results.
CSL (CSL) today booked a net profit for the year through June of $US1.24 billion, a slide of 10 per cent year-on-year.
CSL shares dropped 6.9 per cent to $108.70 in early trade.
On an underlying basis, excluding the purchase of the Novartis influenza business, net profit was up 5.2 per cent to $US1.47bn.
“In our 100th anniversary year, it is clear CSL has evolved from an organisation that largely brought international discoveries to Australians — to an established and growing global leader which translates its own early research into commercial medicines for patients in more than 60 countries,” CSL chief executive Paul Perreault said.
Total revenue for the year was up 8.9 per cent to $US6.13bn. Sales also increased 8.3 per cent to $US5.9bn.
CSL has a workforce of 16,000 across 30 countries and the group has seen its share price rally 400 per cent over the last five years.
CSL plunged $US614 million into research and development during the year and bought the loss-making influenza vaccine business of Novartis to create the world’s second largest flu vaccine manufacturer. The flu business is expected to break even in the 2018 financial year.
A perennial buyer of its own shares, CSL said it will consider launching a further $500m share buyback program after completing the current $1bn program. The group said it also intends to approach the US private placement market to raise around $500m.
Mr Paul Perreault said CSL was expected to grow net profit 11 per cent over the next year, on a constant currency basis.
CSL will pay a final US68c dividend, bringing the year’s total payout to $US1.26.