Insights 16th February 2022

CSL delivers US$1.7 billion half-year profit | CSL (ASX:CSL) Reporting Season Results

CSL reported its half year 2022 results today.

CSL delivered net profit on a constant currency basis of US$1.722 billion, down 5%. NPAT was down 2.8% to US$1.76 billion, which beat Bell Potter’s expected US$1.448 billion. CSL’s profits were lower than year-on-year, due to a 3.4% decline in its gross margin.

Sales were limited due to supply chain constraints, which caused difficulties obtaining plasma from the US, used to make some of CSL’s highest selling products. Management now expects plasma collections to rebound. CSL’s performance is also reflective of solid growth in seasonal vaccines, and its market-leading haemophilia B products.

EPS declined 5% to US$3.77. And despite the weaker earnings, CSL maintain its interim dividend at US$1.04 per share.

As for the company’s future outlook, CSL’s full-year 2022 guidance includes NPAT in the range of US$2.15 billion to US$2.25 billion at constant currency. It also includes US$90 million to US$110 million in transaction costs related to the company’s Vifor Pharma acquisition. And CSL’s future outlook is expected to be supported by an increase in the demand for flu vaccines.

Following the announcement, Macquarie have an Outperform rating on CSL with a $325 price target. While Ord Minnett have a Hold rating.

And as of the time of recording, CSL’s share price is up more than 6%.