re: Ann: Full Year Results, Appendix 4E and A...
Just listened to the webcast. Some points that I thought were interesting were
a) The margin expansion (EBIT is growing more than revenue) b) Gearing goal is 1 x EBITDA, or about $1.4B. Currently, net debt is $917m. On my calcs, FCF, after CAPEX and dividends is about $361m. Add in $483m more debt and you have a buyback of $844m - that could be rounded to $900 quite easily. Hence the buyback comment. c) Sales of only $200m in China last year and offices in Eastern Europe will continue to grow growth. d) Albumin sales will have significant growth opportunities on the back of a USFDA caution on hydroxyethyl starch solutions. e) Two pages of R&D highlights show the return on that investment. Also the incremental growth of the same product in multiple jurisdictions is low risk with big paybacks. Kcentra is a great example of this. The approval in the US of this drug (when it has been used in Europe for many years) will provide real growth, as it is the first new drug for 50 years for acute major bleeding.
HT1
CSL Price at posting:
$63.35 Sentiment: LT Buy Disclosure: Held
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(20min delay)