CSL Faces Vaccine Market Headwinds but Confident on Full-Year Outlook

Robust Half-Year Results Amid Mixed Segment Performance

CSL Limited, the Australian biotechnology giant, unveiled its half-year results for the period ending 31 December 2024, showcasing steady growth across key financial metrics. The company reported a 5% increase in revenue on a constant currency basis, reaching approximately US$8.47 billion, alongside a 7% rise in net profit after tax (NPAT) to US$2.04 billion. These results underscore CSL's resilience in a complex global healthcare environment.

Driving much of this growth was CSL Behring, the company’s flagship plasma-derived therapies division, which posted a 10% revenue increase. Strong demand for immunoglobulins (Ig) surged by 15%, supported by albumin and haemophilia products, while new product uptake such as HEMGENIX® accelerated. Operational efficiencies, including the rollout of the RIKA plasma donation system and iNomi yield improvements, contributed to margin expansion and cost control.

Seqirus Faces Headwinds but Pandemic Tenders Provide Support

In contrast, CSL Seqirus, the influenza vaccine arm, experienced a 9% revenue decline, reflecting ongoing challenges from low immunisation rates in the US and competitive pressures in European markets. However, the segment benefited from pandemic preparedness contracts, including avian influenza tenders, which are expected to bolster second-half revenues. The launch of KOSTAIVE® in Japan and progress in advanced purchase agreements signal potential for recovery and growth in the vaccine portfolio.

Vifor Continues Growth Trajectory in Iron and Nephrology

CSL Vifor, focusing on iron deficiency and nephrology treatments, maintained positive momentum with 6% revenue growth. Volume gains in FERINJECT® and geographic expansion, alongside successful launches of TAVNEOS® and FILSPARI®, underpin the segment’s strong performance. The company highlighted ongoing progress in nephrology innovation and market penetration, positioning Vifor as a growth engine within CSL’s portfolio.

Financial Discipline and Outlook

Interim CFO John Levy noted disciplined financial management, with research and development spending aligned to approximately 10% of revenue and general administrative costs around 6%. The company’s balance sheet deleveraging remains on track, supporting sustainable cash flow generation, which increased to US$1.07 billion from operations.

Looking ahead, CSL reaffirmed its full-year NPATA guidance of 10-13% growth at constant currency, projecting earnings between US$3.2 billion and US$3.3 billion. The outlook anticipates continued strength in CSL Behring’s core immunoglobulin franchise, further margin improvements, and a rebound in Seqirus driven by pandemic-related revenues and new product launches. Vifor’s geographic expansion and product innovation also remain key growth drivers.

CEO Paul McKenzie emphasized the company’s commitment to operational excellence and innovation, highlighting the strategic importance of ongoing plasma collection enhancements and the anticipated launch of ANDEMBRY® (Garadacimab) following regulatory approvals in multiple regions.

Balancing Growth with Market Challenges

While CSL’s half-year results reflect solid execution, the mixed performance across segments, particularly the pressures on Seqirus, suggests a nuanced path forward. The company’s ability to navigate vaccine market dynamics and sustain plasma supply will be critical to maintaining its growth trajectory. Investors will be watching closely how CSL leverages its innovation pipeline and operational initiatives to offset external headwinds.