UPDATE: CSL Fiscal Year Profit Jumps 63% Boosted By Flu Vaccine Orders
August 18 2009 - 10:18PM
Dow Jones News
CSL Ltd. (CSL.AU), the world's second-largest maker of human
plasma products, said Wednesday full-year net profit rose 63%
boosted by flu vaccine orders and it expects further profit growth
ahead.
Profit in the year ended June 30 rose to A$1.15 billion, from
A$701.8 million a year earlier, as total revenue grew 32% to A$5.04
billion, from A$3.80 billion in fiscal year 2008.
The company expects profit growth this year aided by positive
foreign exchange effects, transition to its liquid intravenous
immunoglobulin product and on flu vaccine orders, which should
offset slowing contributions from the company's human
papillomavirus vaccine.
Immunoglobulin is an antibody used in the treatment of blood
disorders, while the human papillomavirus is used in the treatment
of cancers.
"We feel the company remains well positioned for growth," and
have boosted expenditure on research and development, and capital
works to expand CSL's business, Chief Executive Brian McNamee told
reporters on a conference call.
Swine flu vaccine "will give that extra growth to the business,"
he said.
CSL was forecast to post net profit of A$1.03 billion, the
average estimate of five brokers, ranging from A$996.5 million to
A$1.11 billion.
This fiscal year CSL forecasts net profit of between A$1.16
billion and A$1.26 billion at average fiscal 2009 exchange rates,
or 14%-24% growth on the fiscal 2009 underlying operational profit
of A$1.02 billion.
CSL's underlying profit, adjusted for currency movements expense
for its aborted Talecris takeover and non-operational tax items,
grew 23% on a constant currency basis, while its annual sales rose
16% in similar currency terms, McNamee said.
The company's net profit including favorable foreign currency
effects of A$156 million, arising from the conversion back to
Australian dollars of US$1.5 billion held on deposit in
anticipation of closure of the Talecris deal.
About 87% of CSL annual sales were outside of Australia.
"This year we benefited from favorable movements in foreign
exchange, in contrast to the past four years of currency head
winds," McNamee said.
After U.S. regulators scuttled CSL's planned US$3.1 billion
takeover of Talecris, which would have boosted CSL's share of the
U.S. plasma market and put it within striking distance of market
leader Baxter Inc., the company is seeking new areas to grow its
earnings.
In the past few months, CSL has received Australian and U.S.
governments orders for its H1N1 influenza or "swine flu"
vaccine.
McNamee said the company could "reasonably" expect sales of
A$300 million this year for its swine flu vaccine.
CSL's vaccine-making facilities were operating at full capacity
and couldn't take any new orders, McNamee said.
"Yields are certainly lower than we anticipated so we are having
to work hard to produce the vaccine," he said.
CSL's seasonal influenza vaccine business grew 60% to A$124
million last fiscal year from a year earlier and McNamee said he
expected similar sales this year.
Sales at its Behring blood products unit grew 38% to A$3.7
billion with a strong contribution from its immunoglobulins and
critical care products, CSL said.
Its bioplasma unit sales rose 32% to A$334 million driven by
strong demand and improved pricing for albumin in China, as well as
on strong demand for plasma therapies from Hong Kong, Singapore,
Taiwan and Australia, it said.
Sales at its biotherapies unit gained 5% to A$502 million with
growth in flu vaccine sales offsetting reduced Australian sales of
Gardasil, its human papillomavirus vaccine, the company said.
CSL has licensed Gardasil to Merck for sales outside of
Australia and received A$161 million in royalties last fiscal year,
down from A$167 million in fiscal 2008. McNamee expects a similar
sales and contribution from Gardasil this year.
CSL is continuing to seek acquisitions of complementary, niche
products and assets to add to its suite, he said.
The company will pay a final dividend of 40 cents, compared with
23 cents a year earlier.
-By Andrew Harrison, Dow Jones Newswires; 61-3-9292-2095; andrew.harrison@dowjones.com