CSL plunges a further 20 per cent on a rough day of trading. Picture: Google
Healthcare giant CSL’s shares have plunged a further 20 per cent to a decade low after the business announced another market write down.
In a 90-day review, CSL told the market it would take another $US5bn ($A6.9bn) non-cash impairment.
The first $1.5bn of this was recognised during the first-half results.
CSL plunges a further 20 per cent on a rough day of trading. Picture: Google
Shareholders did not take kindly to the announcement.
Shares plummeted a further 20.29 per cent on opening, below $100 a share for the time in more than a decade.
This is from a Covid high of about $340 per share when the business benefited from a high vaccine rate.
Weighing on Monday’s results was weaker-than-expected results from CSL’s overseas markets.
CSL said revenue would still hit $US15.1bn ($A21bn) and net profit is tracking towards $3.1bn, down from previous estimates of $3.3bn.
This includes a further $US300m ($A415m) write down to its US immunoglobulin business, while its albumin business in China announced a further $US200m ($A277m) hit.
The downgrade was announced by CSL interim chief executive Gordon Naylor, who took over the role just three months ago after former top boss Paul McKenzie abruptly left the healthcare giant.
Mr Naylor said despite the weaker-than-expected result, the business was heading in the right direction.
“Our growth initiatives are working, but the financial benefits will take longer than previously anticipated to materialise,” he said.
“As a result we have now revised down our 2026 financial year guidance.
CSL flags further costs pressures: NewsWire/Ian Currie
In August, CSL lost $21bn in a single day’s trading after announcing an ambitious plan to shake up the business, including axing 3000 global roles that would cost $770m initially but ultimately save $500m-$550m over three years.
CSL also announced its intention to demerge its influenza prevention vaccines-focused unit known as Seqirus into a separate ASX-listed business in 2026.
It will also combine the commercial and medical operations of its core blood plasma and iron deficiency businesses into one unit.
CSL exports plasma-derived therapies to the US.
In a statement, CSL said the business was not expecting any material impact from US tariffs on pharmaceuticals, as the lifesaving medicines would be exempt.