Shareholders of the blood products giant CSL
(ASX:ASX) are set to benefit as the company increased its revenue and earnings in the year leading up to June 30.
On Tuesday, the company unveiled that it had raised its full-year underlying profit by 10%, reaching $2.61 billion USD ($4 billion AUD), attributed to higher sales in its core immunoglobulin division, driven by major therapies Privigen and Hizentra.
The Melbourne-based multinational disclosed on the ASX that its underlying net profit after tax and amortisation, adjusted for constant currency, surged by 20%. This substantial increase was attributed to a robust recovery in the CSL Behring business, which specialises in blood-based treatments for chronic immune system disorders, rebounding from the impact of Covid-19.
At constant currency rates, the company's revenue saw a remarkable 31% leap to $13.31 billion USD, while net after-tax profit on the same basis rose to $2.41 billion USD, marking an 8% increase. When considering ordinary currency rates, net after-tax profit experienced a 3% decrease, amounting to $2.19 billion USD.
The final dividend was determined at $1.29 USD per share ($1.18 USD per share in 2022), resulting in a total dividend for the year of $2.36 USD per share, indicating a 6% rise. CSL stated that, when converted to Australian currency, the total full-year dividend would amount to approximately $3.59 AUD per share, reflecting a 13% increase.
The company reiterated its guidance for 2023-24, which was initially provided in a June update and triggered a sell-off in shares. CSL stated that net profit after tax and amortisation, adjusted for constant currencies, would fall within the range of $2.9 to $3 billion USD. This projection represents a growth of 13% to 17%, slightly narrower than the June estimate of 13% to 18%.
Dr. Paul McKenzie, CEO of CSL, commented in Tuesday's release, "Our robust performance in the 2023 financial year was achieved amid a challenging operating environment. Our CSL Behring business rebounded vigorously, driven by remarkable growth in immunoglobulin sales and record plasma collections. While we faced inflation and currency challenges, our focus on enhancing efficiencies across our global manufacturing sites helped mitigate the impact.
"We remain dedicated to executing our strategy of delivering innovative medicines to best serve our patients and safeguard public health. Coupled with our workforce's efforts, this approach is generating positive momentum for CSL and our patients in over 100 countries."
Dr. McKenzie added, "A highlight during this period was successfully treating the first patients with HEMGENIX®, after FDA approval of the first and only gene therapy for treating adults with hemophilia B earlier in the year."
The company reported a 12% revenue increase in CSL Behring, reaching $9.290 billion USD, along with a 6% growth in specialty product sales.
Regarding the crucial task of gathering plasma supplies, CSL had good news to share, particularly in comparison to the experiences during the Covid-19 pandemic. "Plasma collections remained strong, with plasma volumes up by 31%, now at record levels. Improved social mobility post-COVID, targeted marketing campaigns, and enhanced digital initiatives to attract donors all contributed to this unprecedented growth."
The report highlighted a significant ~14% decline in plasma collection costs from the previous year and ~17% reduction from the peak in March 2022. This substantial increase in plasma supply supports the company's ability to manufacture plasma products and meet the core patient demand for these products.
CSL Seqirus, the company's vaccines division, especially for influenza, witnessed a 6% rise in total revenue, reaching $2.031 billion USD. This growth was achieved despite reduced immunisation rates, underscoring the strength of CSL Seqirus' strategic approach and its high-value differentiated product portfolio.
Finally, CSL Vifor achieved a total revenue of $1.989 billion USD, reflecting approximately 11 months of contribution since the business was acquired on August 9, 2022.
