The biotech giant posted a 5 per cent decline in net profits for the six months to December, but it was better than the market expected.
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More importantly, its influenza vaccine business Seqirus reminded investors that the flu is back in town after a two-year hiatus with a 17 per cent jump in revenue to $US1.7 billion.
Seqirus delivered a record 110 million vaccine doses to the northern hemisphere over the half as the US, UK and Europe looked to brace against a rise in influenza cases after two years of COVID-related shutdowns.
“The one thing that COVID has brought for the influenza business is that there’s been a bit of a reawakening [to] the benefits of vaccines in the reduction of disease and death and hospitalisation,” CSL chief executive Paul Perreault said.
And plasma collections, literally the lifeblood of the business, are expected to recover from COVID disruptions.
Citi analyst John Deakin-Bell said it was clear plasma collections would recover soon and that it looks like gross margin, which have been under pressure due to pandemic constraints, will bottom out in the second half of this year.
Twiggy’s 41 per cent surprise
Iron ore prices may dictate the fortunes of investors in Andrew Forrest’s Fortescue via its share price, but many would argue that its large dividend payouts come a close second.
Higher operating costs and the drop in average sales price received for its lower grade iron ore produced a 32 per cent drop in net profit to $US2.78 billion.
Andrew Forrest is Fortescue’s biggest shareholder.Credit:Edwina Pickles
But the real focus was on the 41 per cent cut to its interim dividend which fell to 86¢ per share.
Barrenjoey had been expecting a 100¢ per share payout but noted Fortescue’s comments that dividends will be weighted towards its full-year result.
“Hence, we assume FMG will payout around 90 per cent of [second half net profit] for a full year payout of 80 per cent, subject to the iron ore market,” it said.
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