CSL Ltd: Targeting sustainable, profitable growth

About the author:

Author name:

By Dr Derek Jellinek

Job title:

Senior Analyst

Date posted:

17 October 2023, 7:00 AM

Sectors Covered:

Healthcare

• The inaugural Capital Markets Day offered the opportunity to better understand the strategic direction across core franchises (ie Behring; Seqirus; Vifor), vet the growing R&D portfolio and glimpse at information and digital initiatives.
• Management expressed confidence in CSL’s resilience (ie no material impact from GLP-1s) and competitive advantages in scaled operations, reiterating FY24 guidance and calling for annual double-digit earnings growth over the medium-term.
• This growth is underpinned via a leading position in large, growing markets, and focus on improving plasma yields, lowering costs, a disciplined approach to digitalisation, and new drug launches to improve Behring GMs (3-5 years to pre-COVID levels), with ROIC improving over time.
• We make no changes to our forecasts or (login to view) PT. Add.

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