Date: 11/02/2025

*** GENERAL ADVICE ONLY***

CSL Limited: Earnings Report Analysis

1. Overview

CSL Limited has reported a solid financial performance for the first half of 2025 (1H25), demonstrating steady revenue growth and improved profitability metrics compared to the same period last year (1H24). The company has also made significant strides in product deployment and regulatory approvals, positioning itself well for future growth. Notably, ANDEMBRY® received regulatory approvals in Australia and the UK, with a re-submission to the FDA accepted for December 2024, highlighting CSL’s proactive approach in expanding its market footprint.

Key impactful news includes the accelerated uptake of HEMGENIX® and the progressing regulatory approvals for ANDEMBRY®, which are expected to drive future revenue streams and enhance the company’s competitive edge in the biopharmaceutical sector.

2. Financial Performance

2.1 Segment Performance: H2 2024

• Ig Sales: Increased by 15% compared to H2 2023.
• ALBUMIN® Sales: Grew by 9% year-over-year.
• IDELVION® Sales: Rose by 6% compared to the same period last year.
• Gross Margin: Improved by 170 basis points versus H2 2023.

The strong performance in key product segments underscores CSL’s effective market strategies and robust product portfolio. The advanced deployment of Rika and the successful implementation of iNomi are delivering planned benefits, contributing to the overall revenue growth. Additionally, the accelerating uptake of HEMGENIX® and the promising regulatory progress for ANDEMBRY® indicate positive future prospects.

2.2 Financial Metrics: 1H25 vs 1H24

• Total Revenue: $8,483 million in 1H25, a 5% increase from $8,053 million in 1H24.
• Gross Profit: $4,704 million in 1H25, up by 5% compared to $4,494 million in 1H24.
• Sales & Marketing Expenses: Increased by 7% to $754 million in 1H25 from $707 million in 1H24.
• R&D Expenses: Slight decrease of 4% to $646 million in 1H25 compared to $466 million in 1H24.
• G&A Expenses: Significant rise of 27% to $426 million in 1H25 from $323 million in 1H24.
• NPATA: $2,074 million in 1H25, a 5% increase from $2,017 million in 1H24.
• NPAT: $2,092 million in 1H25, up by 9% compared to $1,920 million in 1H24.
• Cashflow From Operations: $1,259 million in 1H25, an 18% increase from $1,069 million in 1H24.
• NPAT EPS: $4.15 in 1H25, reflecting a 5% growth from $3.94 in 1H24.
• DPS: $1.30 in 1H25, a 9% increase from $1.19 in 1H24.

The financial results for 1H25 showcase CSL Limited’s ability to drive revenue growth while maintaining profitability. Despite an increase in Sales & Marketing and G&A expenses, the company successfully enhanced its net profit after tax (NPAT) and earnings per share (EPS), indicating operational efficiency and effective cost management. The rise in operating cash flow further strengthens CSL’s financial position, providing ample liquidity for future investments and strategic initiatives.

3. Guidance and Expectations

For the period spanning July 2024 to December 2024, CSL Limited provided optimistic guidance, anticipating continued growth across its key product lines. The deployment of Rika is well-advanced, ensuring that the company meets its sales targets. The implementation of the iNomi platform is delivering the planned benefits, contributing to operational efficiencies and cost savings. The uptake of HEMGENIX® is accelerating, reinforcing CSL’s market presence in this segment.

Additionally, regulatory approvals for ANDEMBRY® (Garadacimab) are progressing, with approvals already secured in Australia and the UK, and a re-submission to the FDA accepted for December 2024. This regulatory momentum is expected to facilitate broader market access and revenue growth in the upcoming quarters.

4. Strategic Considerations

4.1 Operational Initiatives

• Advanced deployment of Rika enhances operational capabilities and supports sales growth.
• Successful implementation of iNomi delivers planned operational benefits and cost efficiencies.
• Accelerated uptake of HEMGENIX® positions CSL strongly in the biopharmaceutical market.

4.2 Capital Allocation Plans

• Increased dividends reflect the company’s strong cash flow and commitment to returning value to shareholders.
• Investment in R&D continues to support the development of innovative products and future growth opportunities.

CSL Limited’s strategic focus on enhancing operational efficiencies and expanding its product portfolio is expected to yield long-term benefits. The company remains committed to investing in research and development, ensuring a pipeline of innovative therapies to sustain its competitive advantage. The significant increase in dividends highlights CSL’s strong financial health and its dedication to rewarding shareholders.