CSL shares fall as costs and Seqirus take toll on profits

Australian biotech firm CSL Limited (ASX: CSL) saw its shares fall over 5% to A$110.84 yesterday, after it reported its full-year 2016 results, showing that while sales were up profit declined due to due to one-off costs and losses incurred with the acquisition of the Novartis vaccine business.

Revenues for the year increased 9% to $6.1 billion (all figures US$), while statutory net profit after tax (NPAT) declined 11% to $1.24 billion ($1.36 million at constant exchange rates). However, underlying NPAT was up 5% to $1.47 billion (cer).

Earnings per share at $2.69 were down from $2.92 (due to lower statutory profits). Debt rose significantly due to the Novartis (Seqirus) acquisition. Research and development investment was $614 million. Total sales as CSL Behring were up 10% (cer) at 5.25 billion.