CSL Ltd (ASX: CSL), a leading global biotechnology company, has announced its financial results for FY 2024, showcasing notable growth and a solid performance across its core business units. The company’s shares are expected to be closely observed as it navigates its financial outlook for the coming year.
Strong Financial Performance
For the fiscal year ending June 30, CSL reported a revenue increase of 11% in constant currency, reaching US$14.8 billion. This robust growth was largely driven by its CSL Behring division, which saw a 14% rise in total revenue, amounting to US$10.61 billion. Notably, sales of immunoglobulin (Ig) products surged by 20%, reflecting strong global demand across various therapeutic areas including Primary Immune Deficiency, Secondary Immune Deficiency, and Chronic Inflammatory Demyelinating Polyneuropathy (CIDP).
CSL’s ongoing efforts to enhance plasma collection efficiency have also contributed to its positive performance. The company’s investment in the RIKA plasmapheresis device is progressing as planned, aimed at boosting yield in plasma manufacturing. Additionally, CSL Seqirus, the company's vaccines business, achieved a 4% revenue increase to US$2.128 billion, with the adjuvanted influenza vaccine FLUAD driving a 14% growth despite reduced overall immunisation rates.
The newly acquired CSL Vifor business added US$2.064 billion to the total revenue, further supporting the company’s strong financial results.
Investment in Future Growth
CSL allocated US$1.428 billion towards research and development (R&D) activities during FY 2024, marking a 12% increase from the previous year. This investment aligns with the company’s commitment to innovation, though it was at the lower end of the anticipated 10% to 11% of revenue range. Operational cash flow also saw a 6% year-on-year increase, reaching US$2,764 million, which reflects the higher profitability and sales growth.
On the profitability front, CSL reported a 15% increase in Net Profit After Tax Before Amortisation (NPATA) in constant currency, totaling US$3.01 billion. This performance met the company's annual guidance, highlighting its consistent financial strength.
Outlook for FY 2025
Looking ahead, CSL has set guidance for FY 2025, projecting NPATA to be between US$3.2 billion and US$3.3 billion, indicating a growth range of approximately 10% to 13%. This forecast anticipates revenue growth of 5% to 7% over FY 2024, at constant currency. Despite this guidance potentially falling short of some market expectations, CSL’s conservative approach may leave room for positive revisions as the year progresses.
Dr. Paul McKenzie, CSL’s CEO and Managing Director, expressed confidence in the company’s outlook. He highlighted the sustained momentum in CSL Behring’s immunoglobulins portfolio and the strength of the CSL Seqirus business. McKenzie emphasized that the company remains well-positioned for continued growth, driven by strong patient demand and ongoing investments in innovation.
CSL Ltd has demonstrated a strong performance in FY 2024, with promising growth across its core segments and a strategic focus on future opportunities. The company’s forward-looking guidance and ongoing investments in R&D position it well for continued success in the coming year.