CSL shares are getting hit as profit misses guidance

CSL CEO Paul Perreault/ Listcorp.

CSL posted a net profit after tax of $US1.34 billion for the 2017 financial year, a rise of 7.4% from the year before.

The profit missed analyst expectations though and a short time ago CSL shares were down by 5.42% to $120.29.


Adjusted for foreign exchanges movements, underlying net profit at constant currency rose by 23.8% to $1.43 billion.

The previous year’s results were hampered by the purchase of a loss-making subsidiary of Swiss pharmaceutical multinational Novartis for $US275 million ($357 million).

“We delivered on our promise to provide innovative medicines to patients with rare and serious diseases in more than 60 countries. As a result, our business performance again created significant value for shareholders and other stakeholders,” CEO Paul Perreault said.

“We also continued to expand our plasma collection network. With nearly 180 centres in the US and Europe, CSL is uniquely positioned to leverage our network to drive future growth. We intend to open 25-30 centres over the next year, a level of expansion which is unmatched in the industry.”

Sales revenue on a constant currency basis rose by 15% to $6.923 million. The company recorded a 16% rise in sales of its core range of blood plasma products.

CSL completed the bulk of its $500 million share buyback program in the 2017 financial year, purchasing approximately 3.6 million shares. It announced plans to raise $600 million from debt markets in the year ahead.

Underlying earnings per share (EPS) were $2.94, an increase of 26%. The company announced a full-year dividend of $1.36 per share, up 8% from the prior year.

Looking ahead, Perreault forecast further profit increases in the 2018 financial year.

“CSL Group’s net profit after tax for FY18 is expected to be in the range of approximately $1.48 billion to $1.55 billion at constant currency. This compares to FY17 reported profit of $1,337 million,” Perreault said.

CSL Group

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