Ann: Full Year Results, Appendix 4E and Analysts , page-5

re: Ann: Full Year Results, Appendix 4E and A... Some commentary from the papers:

SMH 14/8/13 Malcolm Maiden.
How CSL got golden shot in the arm

But after he completed the acquisition in April 2004 he was in charge of one of the world's two big plasma processors, alongside the United States-based group Baxter. Over time Baxter and CSL brought supply and demand back into equilibrium (totally independently, of course) and CSL's profits soared.

CSL shares slipped by $2.01 or 3 per cent to $65.79 on the profit news, but CSL's track record like CBA's suggests that short-term gyrations should be ignored.

One of the keys to CSL's relentless improvement is that it has a tailored strategy for the small slice of the global pharmaceutical market it has captured.

The machine needs to be constantly fed, and pharma giants typically run R&D budgets that suck up between 15 per cent and 20 per cent of sales revenue.

At $US427 million in the latest year to June it was 8.5 per cent of revenue, and it will be about $US480 million or 9 per cent of revenue in the current year.

It has won 17 product approvals in the past decade, 85 per cent of them on its first attempt. Big Pharma's first-up application success rate is about 30 per cent.
There's no guarantee CSL will continue to generate new products that supplement sales and earnings on its mainline plasma products including immunoglobulin, but the history is instructive, and Perreault seems very confident there's enough new product coming through to maintain positive profit momentum. Earnings per share are also being leveraged by share buybacks: a $US900 million one is almost complete, and another of much the same size is being considered.
CSL hasn't entirely backed up its latest 19 per cent profit rise in its new guidance and that's one reason its shares fell. It is pointing to a 10 per cent rise in net profit this year, and a 14 per cent rise in earnings before interest and tax. The Melbourne-headquartered group does, however, appear to have a strategy that makes double-digit earnings growth sustainable: for long-term investors, that's golden.

Business Spectator 14/8/13 Robert Gottliebsen.
Healthy and wealthy, but is CSL's buyback wise?

CSL believes that the growth it has achieved over the past decade can continue for the next five to 10 years. That’s why it has decided to embark on another $900 million share buyback.

There is a twinkle in CSL's eye. Most heart attack victims die at the second or third attack, rather than the first heart attack. CSL believes that its so-called RHDL product will reduce the instances of second heart attacks by reducing cholesterol. CSL shareholders should watch out for that product because it's a blockbuster that could transform the company yet again.

A product called Kcentra, which has been used in Europe for a decade, has just been approved for use in the United States. CSL believes this could be a major growth area.

Business Spectator 14/8/13 Stephen Bartholomeusz.
Buybacks as usual at Perreault's CSL

No matter how its excess financial capacity is deployed, the willingness to flag another buyback says Perreault and his board believe the company can maintain the profitability and growth it has demonstrated in the past.

HT1