CSL launches $950m share buyback

CSL (ASX:CSL) will buy back up to $950 million worth of shares in its eighth on-market share buyback in the last nine years.

The company will buy back up to 3% of its share capital - based on yesterday’s closing price - to help improve investment ratios to its shareholders.

Announcing the buyback at the company’s AGM, CSL Chairman Professor John Shine said the company is nearly 95% complete with an up to $950 million buyback that commenced in October last year.

“To date, as a result of this and previous buybacks, CSL has repurchased approximately 23% of the company’s shares on issue” since its first buyback started in 2005, he said.

CSL reported a record US$1.3 billion ($1.4 billion) in profit for FY14, up 8% year on year.

Shine said that during the last 12 months, CSL has completed a project to substantially increase base fractionation capacity at its Swiss manufacturing site and made a decision to locate its recombinant therapies manufacturing facility in Switzerland.

The company also completed the first phase of projects to expand manufacturing sites in the US and Germany, completed construction of a Privigen facility at a Melbourne site and opened a biotechnology manufacturing facility in Melbourne. This month the company also announced a $210 million investment towards upgrading one of its Melbourne sites with the capacity to produce albumin.

“This year, we transitioned back to bioCSL the rights to market and distribute our Afluria influenza vaccine in the US, which had previously been marketed and distributed by Merck, he said. “As a result, we strengthened our commercial resources in preparation for the 2014-2015 influenza season in the Northern Hemisphere.”

Shine said CSL invested US$466 million in R&D this year.

Commenting on the company’s outlook, the company maintained its guidance of an anticipated 12% increase in FY15 profit.

“While the markets in which we operate remain highly competitive, our broad portfolio of products, ongoing product development and geographic reach continue to ensure our business remains well positioned,” he said.

CSL (ASX:CSL) shares were trading 0.55% higher at $72.90 as of around 2 pm on Wednesday.