CSL Announces Full Year Results
CSL Announces Full Year Results
Melbourne, Australia — 26/08/2004
CSL Limited today announced its operating results for the full year ended 30 June 2004.
FULL YEAR HIGHLIGHTS
- Reported net profit after tax of $219.6 million for the year ended 30 June 2004 up 212% on the previous year (June 2003 $70.4 million) despite the effect of adverse currency movements of $31 million compared to the previous year;
- Sales revenue of $1.65 billion, which included three months of trading of the combined ZLB Behring;
- Research & Development expenditure of $101.2 million up 11%, reaffirming CSL’s commitment to R&D;
- Net operating cashflow of $207 million, up 79% on the previous year;
- Final dividend of 26 cents, fully franked, bringing the full year dividend to 38 cents fully franked;
- The purchase of Aventis Behring at a discount to fair value of US$296 million, which has been merged with ZLB to form ZLB Behring;
- Net proceeds from the sale of the Animal Health business of $162 million against a book value of $60 million resulting in a net profit after tax of $75 million.
Dr McNamee, CSL’s Managing Director said, “This has been a transformation year for CSL, firstly with the landmark acquisition of Aventis Behring whose acquisition has considerably strengthened our global plasma therapeutics business and, secondly, with the sale of our Animal Health business.
“The plasma industry has experienced welcome structural change on a global scale and we have been able to position CSL strongly for substantial profitable growth.”
INTEGRATION OF ZLB BEHRING
The Company advised that integration of ZLB Behring had progressed well with the following milestones being achieved.
- Restructuring of Headquarters in King of Prussia was largely complete
- The Glendale office has been closed and the Vienna site was closing.
- Restructuring of the Global Commercial Operations and the Plasma Collection Businesses were well advanced.
- The restructuring of Kankakee was completed.
The Company confirmed that although more than 60% of identified integration milestones had been completed, Marburg restructuring and IT systems integration were still to be finalised, while transfer of intermediates between Kankakee and Bern required validation, FDA submission and approval.
Commenting on the outlook for CSL, Dr McNamee said “The plasma therapeutics industry is rationalising, with the market moving to correct the over-supply situation. There is evidence that prices for IVIG in the US are beginning to move towards economically sustainable levels. This global structural change, coupled with our solid progress with integrating ZLB Behring, has strengthened our confidence in CSL’s strategic direction.
“However these positive signs must be tempered as our 2003-2004 results include just three months of the combined ZLB Behring operations. At this stage we remain comfortable with the upper end of our previous guidance for 2004-2005 which we provided to the market in December 2003 which was net profit after tax in the region of $250-$270 million subject to currency fluctuations and material price movements for our core plasma products”, Dr McNamee said.
For further information, please contact:
Head of Investor Relations
Telephone: +61 3 9389 2818