CSL Announces Full Year Results
CSL Announces Full Year Results
Melbourne, Australia — 21/08/2003
In a year when CSL’s profitability has been significantly affected by difficult US trading conditions and adverse foreign currency movements, the Company announced today that it achieved net profit after tax of $70.4m, a decrease of 43% over the previous year.
Group sales decreased by 3% to $1300m producing a profit after tax before amortisation of goodwill of $112.6m, a decrease of 31% on the previous year’s result. The consolidated earnings before interest, income tax, depreciation and amortisation (EBITDA) were $255.1m, a decrease of 15% on the corresponding period last year, although at constant currency rates EBITDA only declined by 1%. Nevertheless the Company maintained its commitment to R&D by continuing to invest $91m, and which amount had been fully expensed in the result.
This result is consistent with the announcement made by the Company on 15 May, 2003.
Expressing their confidence in the future performance of the Company, the Directors have declared a final dividend of 22 cents per share fully franked, being the same as last year. The final dividend will be payable on 10 October, 2003, bringing the total dividend for the year to 34 cents per share, representing a payout ratio of 48% (based on EPS after tax before goodwill amortisation).
CSL’s Managing Director, Dr Brian McNamee, said that currency movements disguised the underlying strength of the company’s operations, “Although revenues declined by 3% in actual terms year on year, at constant currency rates revenues grew by 6%.” “In particular, CSL’s Pharmaceutical Division generated sales revenues, excluding logistics, in excess of $200m for the first time with growth of 23% year on year,” he said. Dr McNamee added that another highlight was the performance of JRH Biosciences Inc with revenue growth in US dollars of 28% to US$90.2m.
In addition Dr McNamee advised that although reported profitability had been impacted by adverse currency movements, cash flows from operations were $115.5m and the balance sheet had strengthened with gearing reduced to below 30% emphasising the strong financial position of the group.
Commenting on the plasma products industry, Dr McNamee said there was evidence that prices for IVIG in the US were beginning to stabilise and he observed that from recent announcements it appeared that corrective action was being taken by participants to address the market oversupply situation.
Dr McNamee said that CSL’s discussions with Aventis to acquire the Aventis Behring plasma products business were continuing. Due diligence activities on operational matters had been well advanced. Work still remained to be done on legal, separation, IT and financial issues.
In relation to progress on new product development, Dr McNamee confirmed that the multinational Phase III registrational vaccine program with Merck on the quadrivalent HPV vaccine was now well underway following compelling evidence of efficacy in a Phase II clinical trial of a vaccine against HPV 16 alone.
Dividend Reinvestment Plan (DRP)
CSL also announced today that, in response to shareholders’ requests, it will establish a DRP to enable shareholders to use their dividends to acquire additional shares in the Company. The purchase price at which shareholders will acquire CSL shares under the DRP will be at a discount of 2.5% to the volume weighted average price of CSL shares traded on the ASX over the ten trading day period commencing on 28 September, 2003, being the second day after the record date for that dividend. This offer will be limited to shareholders with registered addresses in Australia and New Zealand. The offer to participate will be sent to shareholders on 1 September, 2003.
|CSL Group Results for Year Ended 30 June 2003||2003 $m||2002 $m|
|Depreciation / Amortisation||119.8||113.1|
|Net Interest Expense / (Income)||33.5||29.6|
|Profit after tax before Goodwill Amortisation||112.6||163.6|
|Amortisation of Goodwill after tax||42.2||39.8|
|Net Profit from Ordinary Activities||70.4||123.8|
|Final Dividend (cents)||22.0||22.0|
|EPS diluted (cents)||44.1||77.5|
|EPS after tax before Goodwill Amortisation diluted (cents)||70.6||102.4|
For further information, please contact:
Dr Brian McNamee
Mr Tony Cipa
Ph: +61 3 9389 1601