By Rhiannon Hoyle

Pharmaceuticals company CSL on Tuesday reported a 3% rise in first-half profit, benefiting from further growth in its main blood-plasma business.

Australia-based CSL, which runs a network of plasma-collection centers in the U.S., said its net profit totaled US$2.07 billion in the six months ended Dec. 31. That compared to a US$2.02 billion profit in the year-prior period and market expectations of US$2.09 billion, according to Visible Alpha.

The company declared an interim dividend of US$1.30 per share, compared to US$1.19 a year ago.

When foreign-exchange movements were stripped out, CSL's profit rose by 5% to US$2.11 billion.

It reaffirmed guidance for annual net profit of US$3.2 billion-US$3.3 billion at constant exchange rates. If achieved, that would represent growth of 10-13% on the 2024 fiscal year.

CSL said the half-year result reflected the continued strong performance of its CSL Behring unit, especially immunoglobulins, a key substance collected from plasma.

Immunoglobulin product sales totaled US$3.17 billion, up 15% on a constant currency basis. A post Covid-19 pandemic rebound in plasma collections has continued and the cost per liter, including for donor compensation and labor, has continued to fall.

"In CSL Behring we will continue to focus on improving our gross margins, which will be aided by the expected completion of the RIKA rollout across CSL Plasma by the end of the financial year," said Chief Executive Paul McKenzie.

CSL has faced headwinds elsewhere, including from generic drug rivals now competing with the Ferinject treatment for iron deficiency made by its Vifor business in Europe. Still, McKenzie said growth in the iron market remains strong.

Significantly low immunization rates for the flu virus, particularly in the U.S., hurt its CSL Seqirus business in the half-year period.

"While the market conditions for CSL Seqirus remain challenging, influenza will continue to be a burden to public health systems," he said. "We believe our differentiated strategy is well placed to grow market share."

Write to Rhiannon Hoyle at rhiannon.hoyle@wsj.com

(END) Dow Jones Newswires

February 10, 2025 16:40 ET (21:40 GMT)

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