CSL hits new heights with 24% increase in profit

The market has reacted positively to news that CSL (ASX:CSL) saw a 24% increase in net profit to US$627 million in 1H13 and has completed the restructure of its Australian operations.

CSL (ASX:CSL) has reported a healthy 24% increase in net profit for 1H13 and announced the completion of the restructuring of its Australian operations.

Net profit grew to US$627 million ($608 million), stemming from 7% higher revenue of US$2.5 billion. In constant currencies, profit was up 25% and revenue rose 11%.

Cash flow from operations also increased 24% to US$670 million, despite a 14% spike in R&D spending to US$190 million.

Plasma unit CSL Behring generated the lion’s share of sales of $1.96 billion, up 9% in constant currency, with growth largely driven by strong demand for immunoglobulin during the six-month period.

During the half-year, CSL completed the integration of its Australian plasma operations with CSL Behring to create a single plasma business and broke ground on new biotech and plasma manufacturing facilities at Broadmeadows.

The company also melded its Australian and international vaccines and pharmaceutical operations into the standalone business unit bioCSL.

CSL also announced the appointment of Paul Perreault to the board as an executive director, effective today. Perreault was last year named as the successor to Dr Brian McNamee as managing director, once McNamee steps down at the end of FY13.

For the full year, CSL affirmed its forecast of a roughly 20% increase in FY13 profit at constant currency. This compares to a net profit of US$1.02 billion in FY12.

The company also projects earnings per share growth of around 24%, but has revealed that the bulk of its R&D spending for the year will be weighted to the second half.

The market reacted to the positive results by boosting CSL’s (ASX:CSL) shares price by over 1.5%, with them changing hands for $58.13 - another record price - as of around 1.00 pm on Wednesday.