CSL (ASX:CSL) half-yearly profit slips despite record flu vaccine sales

• CSL (CSL) announces a 5 per cent dip in half-yearly profits to US$1.76 billion (A$2.46 billion) as COVID-19 restricts its ability to collect plasma, hindering its core immunoglobulin business
• The company’s revenue for the half-year firmed 5 per cent to US$6 billion (A$8.3 billion) as season influenza vaccine sales grew 20 per cent
• CSL Managing Director and CEO Paul Perreault says an indirect benefit of the pandemic is a “reawakening” to the general benefits of vaccines
• The company maintains an interim dividend of US$1.04 (A$1.45) per share and forecasts net profit after tax of between US$2.15 billion and US$2.25 billion (A$3.01 billion and A$3.15 billion) for the full 2022 financial year
• Shares in CSL jump 7.21 per cent to $260.52

Shares in biotech giant CSL (CSL) have climbed in early trade despite the company posting a decline in its half-yearly profit for the six months ended December 31, 2021.

CSL’s net profit eased five per cent – on a constant currency basis – to US$1.76 billion (A$2.46 billion) for the first half of the 2022 FY as ongoing COVID-19 challenges constrained the company’s ability to collect plasma, impacting its core immunoglobulin business.

However, the pandemic also helped offset the impacts with some indirect flow-on effects, primarily in the form of renewed enthusiasm for flu vaccines.

CSL’s flu vaccine arm, Seqirus, saw seasonal vaccine sales rise 20 per cent over the half-year and a record 1,100 million influenza vaccine doses administered in the northern hemisphere.

While there were likely many factors that contributed to the vaccine segment improvement, CSL Managing Director and CEO Paul Perreault said the pandemic has brought about a “reawakening” to the general benefits of vaccines.

With the strong performance of its vaccine business, CSL’s revenue increased four per cent to US$6 billion (A$8.3 billion) on a constant currency basis.

Mr Perreault said the half-yearly results were largely in line with company expectations given the plasma collection challenges over the pandemic.

“We have responded by implementing multiple initiatives in our plasma collections network, which has given rise to significant improvement in plasma volumes collected,” he said.

“Given the long-term nature of our manufacturing cycle, this will underpin stronger immunoglobulin and albumin sales going forward.”

CSL maintained its interim dividend to shareholders at US$1.04 (A$1.45) per share.

“Seqirus continues to perform strongly as increased demand for influenza vaccines together with our differentiated product portfolio will see it deliver another profitable year,” Mr Perreault said.

“Consistent with the seasonal nature of the business we anticipate, however, a loss in the second half of the year.”

The company is forecasting net profit after tax of between US$2.15 billion and US$2.25 billion (A$3.01 billion and A$3.15 billion) for the full 2022 financial year.

CSL shares were trading 7.21 per cent higher at $260.52 at 12:36 pm AEDT. The company has a market cap of $117 billion.