FY23 Result - First Take - As pre-announced but detail encouraging Overweight CSL.AX, CSL AU Price (14 Aug 23):A$263.00 Price Target (Jun-24):A$320.00 NPATA 2% ahead, Behring and Seqirus divisions stronger than expected. CSL has delivered a NPATA result of $2.6b ahead of our forecasts and Bloomberg consensus by 2.4%. The NPATA guidance for FY24 was unchanged at $2.9-3.0b. The stronger result was supported by higher gross margins and lower operating expenses. The Behring division sales and operating results were 1% and 4% ahead of our forecasts supported by higher Ig sales and a better gross margin. Seqirus operating results was 3.5% ahead of our forecasts while Vifor was 1% lower. A final dividend of 129c was declared comfortably ahead of JPMe of 120c. The outlook commentary was upbeat forecasting strong Ig sales growth for Behring and continued growth for Seqirus. The company also outlined its mediumterm plans to lift Ig yields later this decade with the charts suggesting a 10% increase is expected on top of the typical year by year improvements. • Key positives. Behring Ig sales and gross margins ahead of forecasts. Yield enhancement program suggests CSL will have a clear competitive advantage in future. Operating cashflow was well ahead of our forecast. Capex to be cut by 30%. • Key negatives. Tax higher than forecast but this likely reflects the impact of non-recurring items. • Outlook and Guidance. NPATA guidance of $2.9-3.0b with growth of 1318% at cFX reaffirmed. Revenue growth of 9-11% is a little lower than our 12% forecast. • Expected share price reaction. Up low to mid single digits.
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