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CSL Limited (ASX:CSL) has tumbled nearly -15% in the first hour of Tuesday trades after the market balked at its latest AGM, particularly news that the Australian company expects the influenza vaccination rate in the U.S. to decline -12%.
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That decline will see revenues from that segment decline by a number ‘in the mid-teens,’ CSL confirmed on Tuesday, a worse forecast than what it had expected to be a ‘high single digit number.’
Revenue growth is now tempered to an expectation of +2-3% YoY, versus a previously cited 4-5%, with profits after tax growth slowing to “4-7%, reduced from 7-10%.”
Additionally, posing a headache for shareholders and management alike, reduced albumin demand in China has also hit the company’s books, with CSL stating it will do what it can to keep impacts limited to the first half of FY26. (CSL has typically exported albumin to China, but policy changes have ultimately made it cheaper domestically.)
Both issues across these major markets – as well as the fact management spent a good deal of time talking about challenges, frustrations with share price, and a need to decomplexify the business – and it’s obvious why investors are jumping ship.
“Progress is not linear, success is not distributed evenly, and change – even positive and urgent change – takes time. I understand your frustration,” CSL Chair Brian McNamee told the company’s AGM attendees (before very promptly handing over to CEO Dr Paul McKenzie).
“In closing, I want to reconfirm our confidence in our core business. As Brian said, CSL has proven its resilience time and time again, and we are taking disciplined and deliberate steps to strengthen our performance and streamline the company for growth,” McKenzie added.
“A big part of what makes this company unique is our history and our people – more than 29,000 colleagues worldwide impacting the lives of millions.”
That’s a lot of staff. And with a cost-cutting program alluded to on Tuesday, the family could be about to get smaller.
CSL last traded at $180.10/share.
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