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UPDATE 2-Australian pharma giant CSL breaks profit record on U.S. sales

Published 15/08/2018, 04:46 pm
Updated 15/08/2018, 04:46 pm
© Reuters.  UPDATE 2-Australian pharma giant CSL breaks profit record on U.S. sales

* CSL annual net profit $1.73 bln vs $1.68-1.71 bln guidance

* Shares up 6 pct to record high

* CSL is Australia's fifth-biggest company (Recasts with outlook, adds analyst quote)

By Byron Kaye

SYDNEY, Aug 15 (Reuters) - Australian biotherapeutics company CSL Ltd CSL.AX on Wednesday posted record profit and forecast an even better year in 2018-19 on the back of strong sales in the United States, sending its shares to a record high.

The former government department firmed its position as Australia's fifth-biggest company by market capitalisation as investors bet on future earnings growth from the opening of new collection centres for blood plasma across the United States.

The company originally known as Commonwealth Serum Laboratories said it expected to grow profit up to another 14 percent for the year to end-June 2019.

"Given the current momentum across each of the core franchises, as well as clear guidance for further margin expansion, we would be surprised if the market did not expect upside to guidance as the company progresses through the year," Goldman Sachs (NYSE:GS) analysts wrote in a client note.

The Melbourne-based company posted net profit of $1.73 billion for the year to end-June, beating its own recently increased forecast of between $1.68 billion and $1.71 billion. The result was broadly in line with analysts' forecasts.

CSL shares rose 6.3 percent, hitting an intraday record of A$214.68, while the broader market .AXJO was up 0.4 percent.

The shares are up more than 50 percent so far in 2018 and its market capitalisation of A$97 billion ($70.1 billion) ranks fifth for Australian-listed companies, within striking distance of fourth-placed Westpac Banking Corp WBC.AX on A$104 billion.

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CSL had raised its annual profit guidance twice in the past year as it started to generate earnings from a host of takeovers. from its Pennsylvania-based Behring grew by more than 13 percent and accounted for more than 86 percent of CSL's net profit this year.

CSL's Seqirus, the world's second-largest influenza vaccines firm, broke even three years after it was created to report earnings before interest and tax of $52.4 million this year, helped by seasonal vaccine sales in the United States.

Seqirus had reported a loss of $179.4 million last year.

The global pharma firm also announced a final dividend of $0.93 per share, compared to the $0.72 per share paid last year.

($1 = 1.3847 Australian dollars)

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