CSL chalks up another record as chief exits
Brian McNamee will exit the group in July after 23 years as chief executive, handing the reins to Paul Perreault, the head of the company's flagship subsidiary.
Mr McNamee leaves CSL with a net profit of $US627 million ($611 million) for the six months to the end of December. This is up 25 per cent from the previous corresponding period after stripping out the effect of the exchange rate.
Even so, the result was largely in line with expectations, boosted by cost savings and a growing presence in emerging markets. Given CSL generates most of its profit from offshore, it has shifted to reporting in US dollars.
Mr McNamee, who flagged his retirement in August, said the company was on track to increase its profits by 20 per cent for the full year, despite recording no growth in Japan and economic conditions remaining soft in parts of southern Europe.
"Although global business conditions remain mixed, we are able to reaffirm our upgraded profit outlook," he said. "It's been a very productive half-year, during which we have successfully strengthened our presence in emerging markets."
CSL shares closed steady at $57.21, but had rallied more than 3 per cent during the session. The company increased its interim dividend to US50¢ a share.
CSL's leading product is used to replace antibody cells in people with low immunity. Sales of immunoglobulin rose 10 per cent to $US912 million. The company also makes blood transfusion products to help sufferers of haemophilia. Sales of these products rose 6 per cent to $US542 million.
Mr Perreault said the healthcare product sales were helped by a growing number of patients able to afford blood treatments in developing countries. "As emerging markets continue to industrialise and treatments and care become available, the first thing they worry about is clean water, and from there it starts moving up."
Mr McNamee said the company was anticipating a rise in royalties for its Gardasil vaccine, and flagged it was waiting on a federal government decision over the introduction of a new shingles vaccination. "We are hoping for good news," he added.
The company announced it will try to raise about $US300 million through a private placement in the US during the second half. The funds would be used to pay off existing debt. "It's really just a question of managing our debt profile," Mr McNamee said.
A UBS healthcare analyst, Andrew Goodsall, said the results were robust and within expectations.
Frequently Asked Questions about this Article…
CSL reported a record net profit of US$627 million for the six months to the end of December, up about 25% from the previous corresponding period after stripping out exchange‑rate effects. Management said the result was largely in line with expectations and reaffirmed guidance to lift full‑year profits by around 20%.
CSL has shifted reporting to US dollars because the company now generates most of its profit offshore. Reporting in US dollars better reflects its largely international revenue and reduces currency distortion in results.
Long‑serving CEO Brian McNamee, who led CSL for 23 years, will exit the group in July. He will be succeeded by Paul Perreault, who is currently head of CSL's flagship subsidiary.
Yes. CSL increased its interim dividend to US50¢ a share. That boost signals continued shareholder returns alongside the company’s strong half‑year performance, though investors should weigh dividend moves with overall strategy and guidance.
CSL's leading immunoglobulin product—used to replace antibody cells in people with low immunity—saw sales rise 10% to US$912 million. Sales of blood‑transfusion and haemophilia products increased about 6% to US$542 million.
Emerging markets are a key growth driver. Management said CSL strengthened its presence in these markets during the half and that a growing number of patients in developing countries can now afford blood treatments as healthcare access improves.
CSL announced plans to seek about US$300 million through a private placement in the US during the second half of the financial year. The company says the proceeds would be used to pay off existing debt and better manage its debt profile.
CSL said it is anticipating a rise in royalties from the Gardasil vaccine. Management also flagged it is awaiting a federal government decision on introducing a new shingles vaccination and described the company as 'hoping for good news.'
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