MELBOURNE, Australia – CSL Limited (ASX:CSL; USOTC:CSLLY (OTC:CSLLY)), a global biotech leader, has reported robust earnings growth for the six months ending December 31, 2023. The company’s net profit after tax (NPAT) increased to $1.90B, marking a 20% rise on a constant currency basis. Underlying profit, or NPATA, also saw a rise to $2.02B, up 13% at constant currency, reaching $2.06B.
The strong financial performance was driven by the outstanding performance of CSL Behring, particularly in the immunoglobulin (Ig) sector. Sales of immunoglobulin products increased by 23%, with PRIVIGEN®/INTRAGAM® and HIZENTRA® leading the way, reflecting robust global demand and improved product availability.
Despite a challenging season, CSL Seqirus, the company’s influenza vaccine division, achieved solid growth. Its differentiated product portfolio, including the adjuvanted influenza vaccine FLUAD®, outperformed the market with a 14% increase in sales.
CSL’s recent acquisition, Vifor Pharma, contributed to the company’s revenue with $1,011M. While near-term growth expectations for CSL Vifor have been moderated, preparations are underway for the evolving iron market, and successful launches of products like MIRCERA® and TAVNEOS® have been made in multiple European countries.
Research and development expenses increased by 11% to $669M, reflecting the progress of CSL’s R&D portfolio. Selling and marketing expenses saw a modest 2% rise, while general and administrative expenses decreased by 7%, attributed to efficiencies from centralizing the group’s enabling functions.
CSL’s financial position remains robust, with a strong balance sheet and a 9% increase in cash flow from operations, driven by higher profitability and sales growth. The company’s outlook for the fiscal year 2024 remains positive, with NPATA expected to be in the range of $2.9B to $3.0B at constant currency, indicating a growth of approximately 13-17%.
CEO Dr. Paul McKenzie expressed confidence in CSL’s ability to deliver double-digit earnings growth over the medium term, citing strong demand for immunoglobulins and successful initiatives in plasma collections that enhance efficiencies.
CSL Limited’s impressive performance in the immunoglobulin sector, driven by continued global demand and improved product availability, has resulted in strong financial growth for the company. With a significant increase in net profit after tax and underlying profit, CSL Behring has played a vital role in boosting the company’s earnings. Additionally, CSL Seqirus, the influenza vaccine division, achieved solid growth with its differentiated product portfolio. The successful acquisition of Vifor Pharma contributed to CSL’s revenue, and preparations for the evolving iron market are already underway. CSL’s positive financial position and outlook for the future highlight its strong potential for continued success in the global biotech industry.
