CSL has delivered full-year earnings results that slightly beat expectations on several metrics, but its shares are sinking after operating expenditures came in higher than expected.
CSL shares were down 4.6 per cent to a six-week low of $294.74 by Tuesday mid-afternoon, with the day shaping up to be its worst since a 6.3 per cent drop on October 12, 2023.
The company said its net profit for the year to June 30 was up 20 per cent to $US2.6 billion ($A3.95 billion), with revenue rising 11 per cent to $US14.8 billion ($A22.5 billion) on strong demand for its blood products.
"I am pleased to report a strong result for the 2024 financial year led by CSL Behring," chief executive and managing director Paul McKenzie said.
"Our largest franchise, the immunoglobulins portfolio, delivered exceptional growth driven by significant patient demand and the recovery in CSL Behring's gross margin is progressing to plan."
RBC Capital Markets analyst Craig Wong-Pan said CSL's $US14.8 billion in revenue was slightly ahead of consensus forecasts of $US14.69 billion and its final dividend of $US1.45 ($A2.20) was above expectations.
But CSL's $US1.4 billion in research and development spending and $US825 million in general and administrative operating expenses were also above expectations, Mr Wong-Pan said.
"We believe the market will likely view the FY24 numbers as slightly disappointing given the higher-than-expected opex," he wrote in a client note, using jargon for operating expenditures.
Saxo Asia Pacific senior sales trader Junvum Kim on the other hand called it "outstanding" full-year results for Australia's third-biggest public company by market capitalisation.
He noted CSL's net income had increased 20 per cent year over year, growth largely attributable to the robust performance of immunoglobulin therapy in CSL Behring, which now accounts for nearly half of company revenue.
CSL recorded $US5.7 billion in sales of its immumoglublin products Privigen, Intragam and Hizentra, up 20 per cent from last year.
The intravenous injections contain a concentrated mix of antibiodies and are used in the treatment of autoimmune diseases and immune-mediated conditions.
"Additionally, ongoing advancements in yield initiatives within the plasma manufacturing process are expected to greatly improve capital efficiency," Mr Kim said.
CSL predicted it would make a net profit in 2024/25 of $US3.2 billion to $3.3 billion ($A4.8 billion to $5 billion), up 10 to 13 per cent from the previous year.
