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CSL Profit Plummets 81% Amid CEO Change
11 Feb
Summary
- First-half profit dropped 81% to $401 million.
- CEO Paul McKenzie has stepped down, replaced by interim CEO.
- Asset write-downs total $1.1 billion due to market changes.
CSL Ltd. has reported an 81% decline in its first-half profit, with net profit after tax falling to $401 million for the six months ended December 31. The Australian biotech company's shares saw a substantial drop in early trading following the announcement.
The company cited significant asset impairments, amounting to $1.1 billion, which included write-downs related to its Vifor iron-therapy business and COVID-19 vaccine technology investments. These factors, combined with restructuring costs, contributed to the profit shortfall. Revenue also decreased by 4% on a constant-currency basis.
Adding to the financial challenges, CSL announced the stepping down of CEO Paul McKenzie. Gordon Naylor has been appointed interim CEO while the company initiates a global search for a permanent successor. This leadership change occurs as the company aims to address weaker vaccine markets and a prolonged period of declining investor confidence.
CSL's core Behring unit experienced weaker performance, with sales of immunoglobulins declining 6% and albumin revenue dropping 27%. The Seqirus vaccines division also reported a 2% sales decrease. Despite these setbacks, CSL has expanded its share buyback program to $750 million and reiterated its full-year guidance, though achieving this outlook will necessitate a significant turnaround in the second half.
