CSL share price on watch amid 20% profit jump

The CSL Ltd (ASX: CSL) share price will be on watch this morning.

That’s because the biotechnology giant has just released its half-year results.

Let’s see how the company performed during the six months ended 31 December.

CSL share price on watch following half-year results

• Revenue up 11% in constant currency to US$8.05 billion
• Net profit after tax in constant currency up 20% to US$1.94 billion
• Net profit after tax before amortisation (NPATA) in constant currency up 13% to $2.06 billion
• Interim dividend up 12% to A$1.81 per share
• Guidance reaffirmed for FY 2024

What happened during the half?

During the first half, CSL reported an 11% lift in constant currency revenue to US$8.05 billion.

This was driven by a 14% increase in CSL Behring revenue to US$5,238 million, a 2% increase in CSL Seqirus revenue to $1,804 million, and a US$1,011 million contribution from the new CSL Vifor business.

In respect to the key CSL Behring business, its growth was underpinned primarily by strong demand for immunoglobulins (Ig). Management notes that Ig product sales increased 23% to US$2,757 million thanks to strong growth across all geographies driven by global plasma supply and patient demand.

The good news is that plasma collection conditions remain strong, and the cost of collections have continued to trend down following a post-COVID spike. In addition, a new roll out plan for the RIKA plasmapheresis devices has been developed. Deployment across its US fleet is expected over the next 18 months.

CSL continued to invest in its research and development (R&D) during the half. It advised that its R&D expenses were US$669 million, up 11% year on year.

Management commentary

CSL’s CEO and managing director, Dr. Paul McKenzie, was pleased with the “strong” half. He commented:

Our strong first-half result for the 2024 financial year was driven by CSL Behring’s exceptional performance across its portfolio, especially immunoglobulins. 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.

Outlook

The good news for the CSL share price is that management has reaffirmed its guidance for FY 2024. Dr. McKenzie said:

For FY24, I am pleased to reaffirm our previous guidance. CSL’s underlying profit, NPATA is expected to be in the range of approximately $2.9 billion to $3.0 billion at constant currency, representing growth over FY23 of approximately 13-17%6

The company’s CEO also remains very positive on the future, highlighting that “CSL is in a strong position to deliver annualised double-digit earnings growth over the medium term.”

The CSL share price is down 5% over the last 12 months.

The post CSL share price on watch amid 20% profit jump appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has positions in CSL. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended CSL. The Motley Fool Australia has recommended CSL. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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