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Australian pharmaceutical giant CSL Limited (ASX: CSL) has boosted net profit by 20 per cent to US$2.64 billion ($4.01 billion) in FY24, with pumped up margins from its immunoglobins portfolio driving growth and poised to deliver another big result in the current year.
The CSL profit has been built on an 11.6 per cent increase in group revenue to US$14.8 billion ($22.47 billion), aided by significant demand for its CSL Behring division’s immunoglobin products, along with a solid performance by the CSL Seqirus division’s influenza vaccine.
CSL’s chief executive Dr Paul McKenzie describes the FY24 numbers as a “strong result” that sets the business up to continue to deliver double-digit growth in the medium term.
“Our largest franchise, the immunoglobulins portfolio, delivered exceptional growth driven by significant patient demand and the recovery in CSL Behring’s gross margin is progressing to plan,” says McKenzie.
“CSL Seqirus outperformed the market in a challenging environment driven by the adjuvanted influenza vaccine FLUAD®.
“CSL Vifor continues to grow iron volume in Europe despite generic entrants and we remain confident in our plan to drive long-term value from this business.”
CSL Behring accounted for US$10.6 billion of group revenue, up 14 per cent from a year earlier.
While CSL Seqirus’ revenue of US$2.13 billion was up only 4 per cent, CSL says this was achieved amid a decline in immunisation rates, highlighting “the strength of CSL Seqirus' differentiated product portfolio”.
Over the past year, CSL lifted its research and development spend by 12 per cent to US$1.43 billion, although this is at the low end of the company’s guidance of 10 to 11 per cent of revenue.
Cash flow from operations was US$2.76 billion, up 6 per cent, which reflects higher profitability and overall growth in sales driven by a strong finish to the year by CSL Behring
“The momentum in our CSL Behring business is expected to continue to be underpinned by the strong patient demand in our immunoglobulins franchise,” says McKenzie.
“We have a number of initiatives under way in plasma collections and our manufacturing operations that will continue to drive efficiencies and lead to an improving CSL Behring gross margin.
“We are excited about the potential growth in our transformational gene therapy product for haemophilia B patients, HEMGENIX® and we are looking forward to bringing our monoclonal antibody, Garadacimab, for the treatment of HAE, to market in FY25, subject to receiving regulatory approvals.”
McKenzie says while market conditions for CSL Seqirus remain challenging, the business is expected to outperform the market.
“For CSL Vifor, the iron market continues to evolve and we are well positioned for increased competition,” he says. “We continue to believe in the longer-term strategic merits of the business.”
CSL is targeting NPATA of between US$3.2 billion and US$3.3 billion in constant currency terms for the current financial year, or an increase of between 10 and 13 per cent on FY24.
CSL is paying a final dividend of US$1.45 per share for a total payout in FY24 of US$2.64, up 12 per cent.
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