Biggest global blood plasma company reports FY20 results

Jessica Amir
August 19, 2020

Global biotech company and biggest company on the ASX, CSL (ASX:CSL), reported its full year financial results, here’s what you need to know.

Net profit after tax (NPAT) gained 9.6% to US$2.1b, following growth in its immunoglobulin portfolio, successful haemophilia portfolio and a transition to its own distribution model in China. This results was in line with market expectations.

CSL reported a revenue increase of 7% to US$9.2b, noting that the biotech giant had no material revenue impact to date as a result of COVID-19.

Earnings before interest, tax, depreciation and amortisation (EBITDA) gained 9% to US$3.1b.

CSL reported a full year dividend of US$2.02 per share including the final dividend of US$1.07 per share unfranked, a 9% increase from last year.

 

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The biggest blood plasma company in the world, CSL (ASX:CSL) reported its full financial year results today in line with market expectations, here’s what you need to know.

Now Net Profit After Tax (NPAT) grew almost 10% compared to the same time last year’s result, rising to US$2.1 billion, which was exactly in line with what the market was expecting.

However, if you exclude the foreign exchange movements, its profit was above its guidance levels.

Its profit was bolstered by growth, strong growth in its leading blood plasma immunoglobulin portfolio with PRIVIGEN® sales growing 20% and HIZENTRA® sales soaring 34%.

Now this was underpinned by growth in immune deficiency sales.

CSL saw haemophilia sales rise as well in HAEGARDA® up 12% and IDELVION® soaring 25% at the same time.

CSL also transitioned its own distribution model into China which allows CSL to work directly with doctors to have greater control.

Plus on top of that, on the other side of its business, its vaccine business was turbocharged by seasonal flu sales rising 21%, which helped its Seqirus business which is already a very profitable business.

Total group revenue as a result rose 7.2% to US$9.2 billion with CSL importantly saying COVID-19 has not materially impacted revenue today, but CSL did note some elements are unpredictable.

Group earnings known as earnings before interest tax depreciation and amortization (EBITDA) was up 9% to US$3.1 billion.

CSL declared a total 2020 dividend of US$2.02 per share, that’s 9% up from the same time last year and that of course factors in the final dividend of US$1.07 per share.

So what’s next?

Well for this financial year, CSL expects net profit after tax (NPAT) to be US$2.1 – US$2.3 billion, this means there could either be 0% profit growth for this financial year or a rise of up to 9% on FY20.

What’s key here is two things, this forecast was 5% below what the market was expecting and the reason for the variation is that CSL says there’s a lot of unpredictability in supply chains, in particular plasma collections are really up in the air with donations being limited due to COVID-19.

On top of that, CSL’s outlook is bright, factoring in its research and development efforts to combat COVID-19, specifically it has a partnership with the University of Queensland to develop a vaccine and four therapeutic candidates in investigation and development phase.

We also know CSL is already in talks with AstraZeeneca to develop a vaccine in Melbourne, so keep your eyes peeled for CSL.

The Aussie Government has also secured a deal to produce a COVID-19 vaccine with AstraZeeneca, that’s provided that the trials developed by Oxford Uni are successful.

After today’s announcement, CSL’s shares popped 6% higher to a four-month high of $311.67, so now it’s about 9% off its all-time high of $342.75.

CSL is importantly backed by three of the biggest brokers,  UBS, Goldman Sachs and Citi with price targets ranging from $320 to $334.

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