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Figure 1: CSL Limited Ltd 12 month chart


CSL Limited boosted by demand for plasma therapies

·         Australia’s largest listed biopharmaceutical company, CSL Limited (CSL) posted a 7.9% rise in FY14 profit to US$1.3 billion as expected. The result was a touch ahead of CSL’s own 7% growth guidance and included US$64 million of litigation expenses

·         The result was driven by a 9.8% rise in sales in its plasma protein therapies unit; CSL Behring, which stgelops products to treat coagulation disorders including haemophilia. The unit’s revenue accounted for 92% of total sales

·         CSL’s earnings took a US$3.3m hit from currency moves as it earned 89% of its revenue offshore; 37% of which was in the US

·         A US$0.60 per share unfranked 2H14 dividend was declared, payable on 3 Oct to eligible shareholders. CSL has a dividend yield of 1.7% and is trading 23 times earnings (PE ratio)

·         Looking ahead and at constant currency, CSL expects net profit after tax to grow by approximately 12% this financial year. It also flagged the likelihood of another on-market share buyback to the tune of A$950 million. CSL is 93% through its current buyback

·         CSL shares, which have fallen by 7.5% over the past few months in the lead up to this result surged in response to its earnings and outlook


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Steven Daghlian, Market Analyst,