This healthcare stock, one of the best growth stocks, stood tall while the general markets faced a tumble.
CSL Limited (ASX: CSL)
CSL Limited (ASX: CSL) has reported a strong financial performance for the first half of the 2025 financial year, with robust revenue growth, increased profitability, and continued investment in key business segments. The company’s core immunoglobulin franchise and CSL Vifor nephrology business were standout performers, offsetting a challenging period for CSL Seqirus due to lower influenza immunisation rates.
Total revenue for the six months ended 31 December 2024 reached US$8.48 billion, representing a 5% increase at constant currency. Net profit after tax (NPAT) rose to US$2.01 billion, a 6% increase, while net profit after tax and amortisation (NPATA) grew by 3% to US$2.07 billion, translating to earnings per share of US$4.29. The company reaffirmed its full-year FY25 guidance, expecting NPATA to range between US$3.2 billion and US$3.3 billion, reflecting anticipated growth of 10-13%.
CSL Behring, the company’s largest business unit, recorded total revenue of US$5.74 billion, up 10% year-over-year. Immunoglobulin (Ig) therapies remained the key driver of growth, with sales increasing by 15% to US$3.17 billion. The strong demand for PRIVIGEN® and HIZENTRA® highlighted continued market expansion in treating Primary Immune Deficiency, Secondary Immune Deficiency, and Chronic Inflammatory Demyelinating Polyneuropathy (CIDP). Albumin sales grew by 9% to US$672 million, driven by strong demand in China, while haemophilia-related product sales rose 11% to US$731 million, largely due to the accelerated uptake of HEMGENIX®, CSL’s gene therapy for haemophilia B. However, specialty product sales declined by 5%, impacted by the loss of a major KCENTRA® contract in the U.S..
CSL Vifor delivered a solid performance, with total revenue increasing 6% to US$1.08 billion. Sales in the iron franchise reached US$527 million, driven by continued volume growth in Europe, despite intensifying generic competition. The nephrology portfolio, particularly TAVNEOS® and FILSPARI®, saw strong adoption across multiple international markets, exceeding expectations.
Plasma collections continued to expand, and the company successfully reduced collection costs through the ongoing rollout of RIKA plasmapheresis devices in the U.S., expected to be completed by June 2025. This initiative is part of CSL’s broader strategy to enhance operating efficiency and improve gross margins.
The company’s financial position remains strong, with cash flow from operations rising 18% to US$1.26 billion. Net finance costs declined by 6%, reflecting improved debt management. However, general and administrative (G&A) expenses increased 27% due to one-off project costs, which are expected to normalise in the second half of FY25.
CSL is among the top growth stocks as it expects to maintain 5-7% revenue growth in FY25, with continued momentum in immunoglobulin and nephrology, while efforts to improve margins in CSL Behring and restore growth in CSL Seqirus remain top priorities. The company’s leadership transition also saw the appointment of Elaine Sorg and Dr. Brian Daniels as non-executive directors, bringing extensive pharmaceutical industry expertise.
With strong underlying business fundamentals, expanding product adoption, and efficiency improvements in plasma operations, CSL is well-positioned for long-term growth and sustained value creation.
(Source: Company’s Report)
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