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Highlights 2008-2009
Dear Shareholder,
The strong international growth in demand for our plasma products and significant continuing revenues from GARDASIL1 vaccine sales and royalties underpin the pleasing result achieved by CSL this year.
Group net profit after tax increased by 63% on the previous year to $1.15 billion. Underlying operational profit2 was $1.02 billion, up 45% on the previous year. CSL’s balance sheet is strong with net cash of $1.81 billion. Cash flow from operations grew 49% this year to $1.03 billion.
In June 2009, CSL announced an on-market share buyback of up to 54,863,000 shares3. Our shareholders will benefit from improved investment return ratios such as on earnings per share and return on equity. The buyback will return funds received from shareholders last year to support our acquisition of Talecris Biotherapeutics, a merger proposal from which we have now withdrawn.
CSL received royalty payments of $161 million from international sales of human papillomavirus vaccine (HPV) and Australia’s national immunisation program generated $159 million in sales of the GARDASIL1 vaccine.
In February 2008, CSL launched Privigen® in the US. This year, we opened a new Privigen® facility, and a further facility is well advanced. Our new generation intravenous immunoglobulin will be a key driver of margin expansion and value.
CSL is carrying out clinical trials of its H1N1 pandemic influenza vaccine. The Australian Government has ordered 21 million doses of the vaccine. CSL also has a contract with the US Department of Health and Human Services to provide vaccine with the initial order valued at US$180 million.
Our expenditure this year on research and development increased by 38% to $312 million.
Our Thanks to Management and Staff
CSL develops and produces life-saving medicines essential to the health of many thousands of people around the world. For continuing success in this satisfying work, we depend on the commitment, skills and experience of a talented international workforce.
Your Board of Directors greatly appreciates all that management and staff have achieved this year to deliver another strong result for the Company.
1 GARDASIL is a trademark of Merck & Co. Inc.
2 Excludes one-off beneficial items to facilitate comparison. Items excluded – foreign exchange earnings and costs associated with discontinuing the Talecris deal, tax and other adjustments.
3 CSL reserves the right to suspend or terminate the share buyback at any time.
