CSL shares shed 10% on weak Behring result, transformation plans
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More news: CSL shares led losses on the ASX 200 after the pharma giant announced its full-year financial result this morning, and unveiled plans to cut 15% of its workforce and demerge its influenza vaccine company Seqirus.
Shares were down 10.2% to $243.64 at 11:25am AEST, taking losses to 20.8% over the last 12 months.
RBC Capital Markets analyst Craig Wong-Pan said CSL's full-year revenue and underlying earnings were "slight misses" to consensus forecasts, while net profit was in line with expectations and at the top of management's guidance range.
CSL's key subsidiary Behring missed market estimates on revenue and gross profit, Wong-Pan said, while the group's smaller businesses Seqirus and Vifor beat expectations.
The company's revenue and underlying profit guidance for the 2026 financial year fell short of consensus forecasts, he noted.
What they said: "We expect the weakness in CSL Behring, lower than expected FY26 guidance and transformation initiatives (which create somewhat of a messy result) to weigh on the stock’s performance today," Wong-Pan said.
CSL posts 17% profit jump, plans Seqirus demerger and cut 15% of workforce
The news: Biotech giant CSL has reported a 17% increase in full-year statutory profit to USD3 billion ($4.6 billion) and announced plans to demerge its influenza vaccine company Seqirus as a "substantial ASX-listed entity" before the end of the 2026 financial year.
The company also unveiled plans to cut its net employee headcount by 15%.
The numbers: Statutory profit was up from the USD2.64 billion reported last year, and beat the market consensus estimate of USD2.94 billion, according to Visible Alpha data.
Underlying profit was up 14% year on year to USD3.3 billion. Revenue grew 5% to U$15.6 billion.
The company declared dividends of USD1.62 per share, 12% higher than the FY24 payout of 145 US cents per share, and above analysts expectations of USD1.56 per share.
As part of "major strategic initiatives to transform CSL", the group said it plans to cut 15% of its employee base. It also flagged one-off restructuring costs of between USD560 million to USD620 million after tax, to be recognised in fiscal 2026.
The initiatives are expected to drive annualised cost savings of USD500 million to USD550 million progressively over the next three years, with the majority achieved by the end of FY27.
The context: CSL chief executive Paul McKenzie said FY25 marked "another on-target result", driven by "continued strong demand for our life-saving plasma therapies".
"Despite this progress, the board and management team of CSL recognise that the operating environment has changed significantly in recent years," McKenzie said in the earnings release.
"A dynamic geopolitical backdrop, competitive pressure and organisational complexity have challenged CSL and hindered its ability to deliver superior returns," he said.
CSL has announced "transformational initiatives" to "reshape and simplify the business".
Meanwhile, the group intends to demerge CSL Seqirus by the end of FY26. CSL said the move will "allow autonomy to set an independent strategic direction, including capitalising on potential opportunities that may arise in a highly dynamic vaccines market, as well as reducing complexity, making the business more agile and efficient to manage."
What they said: "After many years of significant growth, it is important we stay committed to a winning strategy," McKenzie said.
"So with a sense of urgency, I want us to re-focus on our core strengths, lift R&D productivity, instil a lean and efficient mindset, while at the same time optimising our capital structure and removing complexity."
The sources: ASX, RBC Capital Markets research
