Investors are punishing CSL after it lowered its profit outlook

Photo: Getty/Carsten Koall

Biotech group CSL posted a 7% increase in net profit of $US692 million for the six months to the end of December but downgraded its outlook for the full year by 10%.

The blood products group’s revenue for the first half was $US2.8 billion, up 6% but below analyst expectations of $3 billion. However, the net profit was slightly ahead of forecasts.

CEO Paul Perreault said double digit sales growth was achieved in both the blood serum albumin and specialty products.

Influenza vaccine sales were up 24% following a severe influenza season in the northern hemisphere.

Perreault expects global demand for plasma to continue to grow but the market will become increasingly competitive.

“The company continues to have a strong outlook, however, in light of current trading conditions we have tempered our net profit after tax guidance for FY15 to approximately 10% at constant currency,” he said.

The company lifted the unfranked interim dividend by five cents to 58 US cents.

CSL shares were down more than 9% to $81.85.

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