Search ASX code:
Generic filters

Search ASX code:
Generic filters

Search ASX code:
Generic filters

Search ASX code:
Generic filters

CSL (ASX:CSL) share price rises, here’s why

The CSL Limited (ASX: CSL) share price has risen after the biotech giant announcing its FY21 half-year report.

CSL’s strong FY21 half-year result

Australia’s biggest healthcare business reported that its net profit after tax (NPAT) grew by 44% in constant currency terms to US$1.81 billion. Its earnings per share (EPS) also grew by 44% to US$3.98.

CSL was pleased to show that it achieved profit growth across various parts of its business.

The company said there was solid growth of its core immunoglobulin portfolio, led by HIZENTRA. CSL also said that there was strong growth in the leading HAE product HAEGARDA.

Perhaps unsurprisingly in these times of a coronavirus pandemic, there was “exceptionally strong” performance by Sequirus. This division more than doubled its EBIT (EBIT explained) to $693 million. This was driven by large growth of seasonal flu vaccines with record demand and the ongoing shift to Seqirus’ differentiated and high value product portfolio.

CSL told investors that it has successfully transitioned to its own distribution model in China. Total albumin sales grew by 93%. Chinese albumin levels now reflect a more normalised level with the new distribution model expected to improve the participation in the value chain and strengthen sales, marketing and distribution network.

Overall, CSL said that its diversified portfolio and resilient business model in the midst of the COVID-19 pandemic is performing well.

It fully recognised the financial impact of contracted impact for the University of Queensland COVID-19 vaccine in the first half, after the program’s termination a couple of months ago.

CSL dividend

CSL announced that it was increasing its dividend in US dollar terms by 9% to US$1.04 per share. However, converted to Australian dollars, this represents a reduction of 9% to A$1.34 per share.

Management comments and outlook

CSL said that demand for CSL’s core plasma and flu vaccine products remain robust. It’s expecting another strong year from Seqirus. However, consistent with the seasonal nature of the business, it’s expecting a loss in the second half of the year.

Its plasma collections continue to be affected by the pandemic, but it has introduced measures to combat this.

CSL CEO and Managing Director Paul Perreault said: “We remain the industry leader in opening new plasma collection centres and investing in future innovation – positioning CSL to emerge strongly when the COVID-19 crisis recedes.”

CSL is expecting FY21 profit to be in the range of $2.17 billion to $2.265 billion, representing growth of up to 8% year on year.

Summary thoughts

This was a strong result from CSL, considering how large it already is. This growth shows how important CSL products are in the current environment. CSL shares could be a consideration for a long term buy, I like how much it re-invests for more growth. However, smaller ASX growth shares are earlier on in their growth runways.

Before you consider CSL, I suggest getting a free Rask account and accessing our full stock reports. Click this link to join for free and access our analyst reports.

The Rask analyst team has launched its most ambitious investing mission of all time...

Find (and buy) Australia's 10 best small-cap shares.

Our analysts have identified 10 ASX shares that could potentially return multiples of the initial investment over the next 10 years. But make no mistake, this mission isn't for the feint of heart. It's a high-risk mission for serious investors only.

The Rask Rockets program is our most advanced, most highly valued ASX investor research service.

And guess what, we've given away 1 free Rask Rocket Beyond share idea, plus one of our best Rask Rockets Apollo mission companies and another one of our top stock ideas from Rask Invest -- all FREE! You can get the stock ideas by listening to a recent episode of Australian Investors Podcast, as part of our Beyond re-opening sale.

Just click here to get the names and ASX stock ticker codes of 3 of our team's best stock ideas.
At the time of publishing, the author of this article does not have a financial or commercial interest in any of the companies mentioned.

Information warning: The information on this website is published by The Rask Group Pty Ltd (ABN: 36 622 810 995) is limited to factual information or (at most) general financial advice only. That means, the information and advice does not take into account your objectives, financial situation or needs. It is not specific to you, your needs, goals or objectives. Because of that, you should consider if the advice is appropriate to you and your needs, before acting on the information. If you don’t know what your needs are, you should consult a trusted and licensed financial adviser who can provide you with personal financial product advice. In addition, you should obtain and read the product disclosure statement (PDS) before making a decision to acquire a financial product. Please read our Terms and Conditions and Financial Services Guide before using this website. The Rask Group Pty Ltd is a Corporate Authorised Representative (#1280930) of AFSL #383169.

LIVE ASX Chat - Join in!

Play Video

Keep reading: