CSL lifts profit outlook by 20pc
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Nicholas Grove is a Morningstar journalist.
Blood products and vaccine maker CSL Limited (CSL) on Tuesday lifted its net profit outlook for fiscal 2013 in US dollar terms by approximately 20 per cent, despite competitive business conditions.
In August this year, the company reported a net profit after tax of US$1,024 million and provided guidance for profit growth of approximately 12 per cent during fiscal 2013.
CSL managing director Brian McNamee said the improved outlook for the financial year is largely underpinned by the performance of the CSL Behring division.
"A number of factors have contributed, including a higher level of sales, a better sales mix and improved efficiencies across the supply chain," he said in a statement.
Also contributing to the better outlook, McNamee said, is higher-than-anticipated royalty income from sales of the GARDASIL, a vaccine used in the prevention of certain types of human papillomavirus (HPV).
Earnings per share growth for fiscal 2013 will exceed profit growth expectations as shareholders benefit from the ongoing effect of share buybacks, CSL said.
In compiling the company's financial forecasts for fiscal 2013, CSL cautioned that a number of key variables may have a significant impact on guidance.
These include material price and volume movements in plasma products, competitor activity, changes in healthcare regulations and reimbursement policies, and royalties arising from the sale of HPV vaccine.
Other variables include internationalisation of the company's influenza vaccine sales and plasma therapy life cycle management strategies, enforcement of key intellectual property, regulatory risk, litigation, the effective tax rate and foreign exchange movements.