CSL has significantly revised its earnings and revenue forecasts, citing a decline in US vaccination rates. This announcement coincides with the company’s decision to shelve plans for the demerger of its Seqirus vaccines business. Further complicating matters, CSL faces a potential board spill following a second consecutive year of shareholder rejection of the company’s remuneration report.
The announcement was made ahead of CSL’s annual general meeting. The company anticipates a 12 per cent drop in US vaccination rates during the upcoming northern hemisphere winter. This decline is expected to negatively impact earnings at Seqirus, one of CSL’s core business units. CSL is a global biotechnology company that researches, develops, manufactures, and markets a range of pharmaceutical products. Seqirus, its vaccines arm, develops and manufactures influenza vaccines.
Chief executive Paul McKenzie stated that net profit is now projected to grow between 4 per cent and 7 per cent in fiscal year 2026. This is a reduction from the company’s previous forecast in August, which anticipated growth of 7 per cent to 10 per cent. The revised forecast reflects the anticipated challenges posed by the reduced vaccination rates and the subsequent impact on Seqirus’s financial performance.
The events unfolding at CSL highlight the challenges faced by the company, including external market factors and internal governance issues. Investors are closely watching the company’s response to these challenges and its strategies for navigating the evolving healthcare landscape.
