More of the same from the past couple of years is promised for the coming year from Australia’s global pharmaceutical giant, CSL – a solid profit rise, higher dividend, with another buyback also possible.
In some respects it could be a replay of 2013-14 and 2012-13. CSL is now a very reliable performer.
The latest year to June 30 saw full-year net profit after tax rise 7.8% to $US1.307 billion ($A1.41 billion), up from $US1.2 billion in 2012-13. (The result would have been higher but was dragged down by the $US64 million cost of a legal settlement).
Market forecasts were for a profit of $US1.3 billion.
Revenues rose 7.7% to $US5.33 billion in the year to June 30, which was just under the U$S5.4 billion estimate from analysts.
On a constant currency terms, sales were up 8.6% to $US5.37 billion.
CSL 1Y – CSL flags buyback, lifts profit
And shareholders can expect a better year in 2014-15 with CEO Paul Perreault confident of another very solid year.
Commenting on CSL’s outlook, Mr Perreault said, “We continue to see robust global demand for plasma therapies. Our broad suite of products together with a multisite capacity expansion program strongly positions the company in a competitive market.
"In the recombinant haemophilia space we anticipate a new generation of products to enter the market over the next few years. CSL is well placed to compete with a portfolio of innovative recombinant therapies in the final stages of development.”
“This financial year, at constant currency, we anticipate net profit after tax to grow approximately 12% and earnings before interest and tax to grow approximately 15%.
"Earnings per share growth will again exceed profit growth expectations as shareholders benefit from the ongoing effect of past and current share buybacks.
"I’m pleased to foreshadow that following the completion of the current share buyback program the Board of Directors will consider a further on-market share buyback of a similar amount to the current program of $A950 million,” Mr Perreault said.
The board lifted final dividend 15% to 60 US cents per share, unfranked (up 14% in Australian currency to around 65 cents).
That took total dividends for the year to $US1.24 a share, up 17%.
CSL shares ended at $67.27, up 2.6% in one of its best one day performances for a while.
In fact up to Tuesday’s close, the shares had risen by just 0.1% in the past year, against an 8% rise in the ASX 200 (but less than 2% in 2014 so far).
