CSL Limited (ASX: CSL)
CSL Limited (ASX: CSL) achieved notable milestones in fiscal year 2024, marked by substantial advancements in product deployment and expansion. The rollout of new plasmapheresis devices, Rika, is ahead of schedule, now active in 134 centres as of September. Additionally, Terumo’s Nomogram for individualized plasma treatment received FDA clearance, marking another milestone for CSL Plasma. The CSL Plasma mobile app has gained popularity, amassing nearly four million downloads. Operational improvements also continue, with Horizon 1 and Horizon 2 yield initiatives advancing as planned, contributing to a 120 basis point increase in CSL Behring’s gross margin at constant currency from the previous fiscal year.
In FY24, CSL reported an 11% increase in total revenue, reaching $14.8 billion, and a 13% rise in group operating results, reaching $6.5 billion. Research and development expenses grew by 12%, aligning with sales growth. General and administration costs saw a 6% reduction, thanks to efficiencies in operations and reduced foreign exchange impacts. Net finance costs rose by 7% due to the CSL Vifor acquisition and higher interest rates. Net profit after tax attributable to shareholders increased by 15%, with earnings per share also growing by 11%. The total dividend declared was US$2.64 per share, a 12% increase compared to the prior year, reflecting the company's strong financial performance.
Over the past decade, CSL has invested heavily in infrastructure and R&D, building a robust global business foundation. These investments included the expansion of manufacturing sites in Switzerland, Germany, and the U.S., as well as the construction of new R&D and vaccine facilities in Europe and the U.S. CSL has also opened a new global headquarters in Melbourne, with state-of-the-art R&D labs and clinical manufacturing capabilities. While CSL is entering a phase of less capital-intensive growth, demand for its products continues to rise, and the company is preparing for further capacity expansion as needed.
For fiscal year 2025, CSL is optimistic about continued growth. The CSL Behring division expects strong patient demand for immunoglobulins and continued success with HEMGENIX, its gene therapy for Hemophilia B. CSL Seqirus anticipates continued market outperformance, with the commercialisation of KOSTAIVE in Japan and preparations for regulatory submissions in the EU and U.S. CSL Vifor, while facing some pricing challenges in the iron market, remains the dominant player in Europe, with expansion plans in nephrology and patient blood management. For FY25, CSL expects revenue growth of 5-7% at constant currency, with NPATA growth of 10-13%, reaffirming its outlook for double-digit earnings growth over the medium term.
Source: Company’s Report
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