CSL Boosts Profit 6% with Strong Plasma Sales, Faces Vaccine Market Headwinds
CSL Limited reported a solid 5% revenue increase and 6% rise in net profit after tax for the half year ended December 2024, underpinned by robust performance in its plasma therapies business despite headwinds in its influenza vaccine segment.
- Total revenue up 5% to US$8.48 billion
- Net profit after tax (NPAT) rises 6% to US$2.01 billion
- CSL Behring revenue grows 10%, driven by immunoglobulin and haemophilia products
- CSL Seqirus revenue declines 9% due to low influenza immunisation rates
- Interim dividend increased to US$1.30 per share, reaffirmed FY25 guidance
Robust Half-Year Performance Amid Mixed Segment Results
CSL Limited (ASX: CSL) has reported a resilient financial performance for the half year ended 31 December 2024, with total revenue climbing 5% to US$8.48 billion and net profit after tax (NPAT) attributable to shareholders rising 6% to US$2.01 billion. These results reflect the company’s strong foothold in plasma-derived therapies, offsetting challenges faced in its influenza vaccine business.
The company’s core plasma therapies division, CSL Behring, delivered a standout performance with revenue up 10% to US$5.74 billion. Growth was driven by a 15% increase in immunoglobulin sales, notably PRIVIGEN® and HIZENTRA®, reflecting sustained patient demand and expanding diagnosis rates globally. Haemophilia products also contributed positively, with sales rising 11%, supported by the uptake of novel therapies such as HEMGENIX® gene therapy and IDELVION® recombinant factor IX.
Seqirus Faces Market Headwinds, Vifor Shows Steady Growth
Conversely, CSL Seqirus experienced a 9% revenue decline to US$1.66 billion, primarily due to significantly lower influenza immunisation rates in key markets, including the United States. FLUAD® and FLUCELVAX® sales fell by 17% and 12% respectively, reflecting the broader challenges in the influenza vaccine market. However, the business secured several tenders related to the ongoing H5 avian influenza outbreak, with revenues expected to materialise in the second half of FY25.
CSL Vifor, focusing on iron deficiency and nephrology therapies, posted a 6% revenue increase to US$1.08 billion. Iron product sales grew 3%, driven by volume gains in Europe despite generic competition. The nephrology portfolio, including TAVNEOS® and the recent launch of FILSPARI® in select European markets, demonstrated strong momentum.
Operational Efficiencies and Financial Discipline
CSL’s operational discipline was evident in its expense management. Research and development (R&D) expenses decreased 4% to US$646 million, reflecting the winding down of certain programs, while selling and marketing costs rose 7% due to product launch preparations and geographic expansion. General and administrative expenses increased 27%, driven by non-recurring project costs expected to normalise in the second half.
The company’s cash flow from operations surged 18% to US$1.26 billion, supported by strong earnings growth and working capital improvements. CSL’s balance sheet remains robust with net assets of US$20.55 billion and undrawn liquidity facilities of US$2.5 billion, providing ample flexibility for ongoing investments.
Dividend and Outlook
Reflecting confidence in its financial position, CSL declared an unfranked interim dividend of US$1.30 per share, up from US$1.19 in the prior period. The company reaffirmed its FY25 guidance, anticipating revenue growth of 5-7% at constant currency and NPATA growth of 10-13%, targeting US$3.2 to US$3.3 billion.
CSL’s management highlighted the solid fundamentals of its plasma therapies and iron deficiency franchises, while acknowledging the ongoing challenges in the influenza vaccine market. The completion of the RIKA plasmapheresis device rollout by mid-2025 is expected to enhance plasma collection efficiency and gross margins.
Looking ahead, CSL is positioned to sustain double-digit earnings growth over the medium term, driven by innovation in gene therapies, expanding patient populations, and strategic market expansion.
Bottom Line?
CSL’s half-year results underscore its resilience and growth potential, but investors will watch closely how Seqirus navigates ongoing market pressures.
Questions in the middle?
- How will CSL Seqirus adapt its strategy to counteract declining influenza vaccine demand?
- What impact will the completion of the RIKA device rollout have on plasma collection costs and margins?
- Can CSL sustain its double-digit earnings growth amid increasing generic competition and regulatory challenges?
