Plasma collection challenges dampen CSL’s bumper results

CSL recorded its fastest earnings growth in memory in the first half to December 31, with net profit leaping 45 per cent to hit $US$US1.8 billion ($2.32 billion) but pandemic-related issues have triggered a substantial decline in plasma collections, which weighed on its outlook.

CSL CEO Paul Perreault says the company had an exceptional first half, but he does not expect that to be replicated in the next six months. Eamon Gallagher.

CSL revenue also leapt 16.9 per cent to $US5.7 billion, whereas usually low double-digit revenue growth is considered a strong result.

Speaking to The Australian Financial Review, Mr Perreault said the first half’s results was driven by an exceptional result from flu vaccine business Seqirus, which is cyclically stronger in the first half.

I don’t think we’ve had [this kind of] percentage increase before,” Mr Perreault said.

For 2021 CSL maintained its full-year guidance of net profit of $US2.17 billion to $US2.265 billion at constant currencies, representing growth of 8 per cent at the upper end.

Seqirus’ revenue climbed 38 per cent for the first half of the year, hitting $US1.4 billion, while earnings before tax reached $US693 million.

Overall, sales for CSL Behring (which encompasses all business units excluding Seqirus) leapt 11 per cent, while Seqirus’ revenue climbed 38 per cent.

While the vaccine does not look to be as effective as those produced by Pfizer or Moderna, Mr Perreault was confident it would keep Australians out of hospital with COVID-19, even if more mutant strains emerge and it has to be adapted.

While the AstraZeneca COVID-19 vaccine had been approved, CSL was also involved in producing the University of Queensland’s COVID-19 vaccine candidate, which was unsuccessful.

In the second half CSL expected to significantly increase its research and development spend, with clinical trials now resuming after delays due to COVID-19.

The spot price of iron ore leapt 4.9 per cent amid renewed demand for the steel making material as Chinese mills got back to work