CSL Limited (ASX:CSL) closed the week at $29.68 after briefly touching three year lows of $26.12 earlier this month. Despite being a respite for CSL shareholders, the increase was still 20% off January’s peak of over $37.00
In August the biopharmaceutical company reported an underlying profit decrease of $112M to $941M or 11% on prior year and flagged that the strength of the Australian dollar had impacted the company to the tune of $116M. As the Australian dollar slumps against the greenback, the market is obviously pricing in a corresponding profit increase for the company, although clearly even without currency fluctuations profit growth was negligible and the prior year’s financial result for CSL Limited was similarly underwhelming.
Recently the company has been dealing with fallout from the US Food and Drug Administration’s audit from last year, but says that the allegations have largely been addressed. However questions are now being raised about CSL’s announcement that penicillin would be in short supply in Australia through to December due to a spike in global demand.