Reporting Summary

CSL Australia Limited (CSL)

1H Year Results - Released 15/02/2017

  • Beat consensus estimates for NPAT and was up strongly from a year ago

Financial Results

  • NPAT reported as US$805.5m which was better than consensus expectations of US$718.8m
  • Revenue of US$3.68b better than the US$3.14b reported a year ago
  • EBITDA reported as US$1.23b which was better than US$916.8m reported a year ago
  • Interim dividend of US 64 cps, unfranked payable on 13 April

Operational Key Points

  • CSL Behrig:
    • Product sales up 18% on a constant currency basis
    • Strong take-up of Idelvion
    • Afstya approved
    • CSL 830 (Haegarda) – BLA accepted by US FDA
    • CSL 112 – positive results from phase 2b trial
    • Three new monoclonal antibodies enter phase 1 trials
    • License agreement with Momenta to develop Fc multimer proteins
  • Seqirus:
    • Alfuria Quadrivalent approved by US FDA
    • Fluad launched in the US
    • First to market in US for seasonal influenza vaccines
  • Capital Management:
    • New US$550m private placement completed
    • New US$500m share-buyback underway and is around 11% complete as at 21 December 2016

Management Outlook

  • NPAT growth expected to be around 18 to 20% on a constant currency basis
  • Outlook for the remainder of FY17:
    • Continued strong demand for plasma therapy products
    • Ongoing growth in rCOAGs sales contribution
  • Uneven profit profile between 1H and 2H arising from:
    • Competitor product supply returning
    • Seasonality of the Sequius business
    • Timing of expenses, particularly R&D
    • Timing of payments from partners
  • Near term R&D highlights
    • Planning for CSL 112 (apoA-I) Phase III continuing
    • Haegarda approval anticipated in 1H FY18

Michael Ron

Research Analyst

Michael has been trading equities since 2003 and since joining DJ Carmichael in 2004 has worked in numerous roles in operations, trading, compliance and research. Michael’s expertise is in trading and equity strategy using a combination of both technical and fundamental analysis.

Michael holds a Graduate Diploma in Applied Finance, Diploma of Financial Markets, Diploma of Financial Planning, Advanced Diploma of Business Administration and is currently studying towards a Master of Applied Finance.