As many analysts had forecast or suspected, CSL yesterday revealed a small dip in earnings for the six months to December.
And the reason was also as most analysts had suspected – constraints on plasma collection (especially in the US) which had a negative impact on sales and margins.
The Melbourne-based global blood products giant reported a net profit of $US1.76 billion ($A2.46 billion) profit for the six months to December, down 5% in constant currency terms from a year ago.
That was on a 5% rise in revenue to $US6.041 billion in constant currency terms.
Interim dividend was left unchanged at $US1.04 a share (around $A1.46 a share but up 8% because of currency changes).
The company saw its gross profit margin down 3.4 percentage points to 57.1% because of extra costs linked to dealing with Covid and its impact on blood collections, especially in North America.
And, according to the company, the rest of the June 30 year looks like being a bit more of the same with CSL still forecasting a net profit after tax for the June 30 year to be in the range of approximately $US2.15 to $US2.25 billion at constant currency.
Seeing that is forecast to include around $US90 million to $US110 million in transaction costs related to the agreement to acquire Vifor Pharma, the underlying result could be as high as $US2.35 billion.
Which in effect is a small upgrade to underlying earnings.
CSL shares rose sharply as a result of that bit of good news – the shares jumped more than 8% to a day’s high of $263.69 as analysts realised the profit position may not be as weak as previously thought.
The half year numbers fell within the company’s guidance and CEO Paul Perreault told the markets in a statement that the results were delivered amid a “challenging environment brought about by the ongoing impacts of the COVID-19 pandemic”.
CSL indicated the challenges were evident in the company’s revenue figures for its core immunoglobulin business, which includes therapies created with donated human plasma.
Revenues dropped 9% for the half in constant currency terms, coming in at $US1.977 billion.
Mr Perreault acknowledged that challenges collecting plasma over the course of the pandemic contributed to the numbers, but told investors the business was seeing a significant improvement in plasma collections thanks to initiatives the company has launched over the past two years.
A company presentation said collections, which had dipped as much as 20% across the industry, had risen 18%.
“Given the long-term nature of our manufacturing cycle, this will underpin stronger immunoglobulin and albumin sales going forward,” he said.
The company’s vaccine maker Seqirus posted another strong half, with flu vaccine sales up 20%.
The business saw revenues up 17% to $US1.7 billion.
In his outlook statements, Mr Perreault indicated that while Seqirus was expected to post a full year profit, it would post a loss in the second half due to the seasonal nature of the business (in the northern hemisphere).
