REPORTING SEASON: CSL Limited (CSL)

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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

 

You can see all of CommSec’s reporting season analysis by clicking here.

Steven Daghlian, Market Analyst,