CSL has boosted half year profit by more than 10 per cent

An ‘exceptional’ performance from its plasma division has underpinned an uplift in first half profit with CSL reaffirming its full year growth outlook.

CSL chief executive Paul McKenzie with chairman Brian McNamee.Picture: Supplied

An “exceptional” performance from its Behring division has helped CSL post an increase in half year underlying earnings of more than 10 per cent.

The blood products company on Tuesday announced revenue of $US8.05bn for the half year, up 11 per cent on a constant currency basis, while net profit after tax and amortisation - the company’s preferred measure - was 11 per cent higher at $US2.02bn.

CSL managing director Dr Paul McKenzie said the strong result was “driven by CSL Behring’s exceptional performance across its portfolio, especially immunoglobins’’.

“The plasma initiatives we have implemented are starting to drive gross margin recovery’’.

“CSL Seqirus achieved solid growth in a challenging season. Its portfolio of differentiated

products outperformed the market.

“For CSL Vifor we are well prepared for the transitioning iron market.”

CSL Behring’s revenue came in at $US5.24bn for the half, up 14 per cent compared to the previous corresponding period.

The company said immunoglobin sales were up 23 per cent to $US2.76bn, with strong growth across all geographies.

“Underlying demand for immunoglobin continues to be strong due to significant patient needs in core indications – namely primary immune deficiency, secondary immune deficiency and chronic inflammatory demyelinating polyneuropathy (CIDP).’’

The company said plasma collections remained strong with the cost of collection continuing to trend down.

CSL Seqirus grew revenue by 2 per cent to $US1.8bn, with its FLUAD flu vaccine increasing sales 14 per cent.

“This growth was achieved against a backdrop of reduced rates of immunisation and highlights the strength of CSL Seqirus’ differentiated product portfolio,’’ the company said.

CSl Vifor, which was acquired in August 2022, posted revenue of $US1.01bn.

“While the strategic potential of the business remains strong, we have dampened our near-term growth aspirations for CSL Vifor,’’ the company said..

CSL reaffirmed its full year net profit guidance of $US2.9-$US3bn, up 13-17 per cent over the previous corresponding period.

“CSL is in a strong position to deliver annualised double-digit earnings growth over the medium term,’’ Dr McKenzie said.

“The strong growth in our immunoglobulins franchise is expected to continue as patient

demand remains strong.

“We have a number of initiatives underway in plasma collections that are improving efficiencies and processing times, supporting continued expansion in CSL Behring’s gross margin.’’

Dr McKenzie said while CSL Seqirus had performed well in a challenging season, “due to the seasonality of this business we anticipate it to post a loss in the second half of the fiscal year’’.

“For CSL Vifor, we are operating within an evolving iron market,’’ he said.

“While there are challenges for near-term growth, we are well positioned for iron competition in the EU and further geographic expansion.

“Our focus remains on unlocking value by leveraging capabilities across the CSL group.’’

CSL on Monday announced that its blockbuster cardiac drug trial for the CSL112 compound had failed to deliver the desired result, likely bringing to an end a 10 year, circa $1bn development program.

CSL will pay an interim dividend of $US1.19 per share on April 3, up 12 per cent in Australian dollar terms.

Originally published as CSL has boosted half year profit by more than 10 per cent