Business

CSL earnings surge on competitor supply woes

Competitor problems in supplying immunoglobulin products in the final quarter of last year helped CSL to boost revenues and earnings, with sales to remain strong through the balance of fiscal 2017.

In the December half, the net profit rose 12 per cent to $US806 million ($1.051 billion) on revenue which gained 17 per cent ot $US3.7 billion.

The result was slightly ahead of the net profit of of $US800 million advised in January.

Sales of immunoglobulins surged 22 per cent in the half as it benefited from supply constraints which weighed on the performance of rivals in offshore markets, CSL said, with revenues of albumins ahead 19 per cent as sales of speciality products gained 25 per cent.

Sales from other segments was mixed.

Earnings a share reached $US1.77 up from $US1.55 with an interim dividend of US64c a share declared.

"The one-off market conditions arising from competitor supply constraints in the first half are expected to normalise in the second half," the chief executive, Mr Paul Perreault​ said, "as the competition has indicated they are back on track."

Even so, it has signalled that growth will remain strong in sales of immunoglobulins and albumin.

​When CSL signalled to investors the strong outlook for December half earnings, it also raised its net profit forecast for the year to June to a rise of 18-20 per cent which is well ahead of the 11 per cent forecast given at the November annual general meeting of shareholders.