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CSL Profit Dips Amid Weaker Sales, Policy Pressures
11 Feb
Summary
- First-half profit declined due to lower albumin and immunoglobulin sales.
- CSL is expanding its share buyback by $250 million to show financial strength.
- The company is accelerating transformation and cost-cutting measures.
Australian biotechnology giant CSL experienced a decline in its first-half profit, reporting $1.92 billion on a constant currency basis for the six months ending December 31, compared to $2.11 billion in the prior year. Total revenue decreased by 4% to $8.33 billion. The core plasma division, CSL Behring, saw a 7% revenue drop, with albumin sales falling significantly by 27% and immunoglobulin sales down 6%.
In response to the softer performance, CSL is intensifying its transformation measures, including cost-cutting initiatives. The company has already achieved about 60% of its fiscal 2026 targeted cost savings. To signal financial stability and reassure investors, CSL announced plans to expand its share buyback program by an additional $250 million.
Despite the challenges, CSL reaffirmed its full-year outlook for fiscal 2026, anticipating modest revenue growth and a return to mid-single-digit underlying profit growth. The company's vaccine business, Seqirus, reported a 2% revenue decrease to $1.6 billion. CSL declared an interim dividend of $1.30 per share, unchanged from the previous year.
