Major strategic initiatives, including demerger, to transform CSL

MELBOURNE, Aug. 19, 2025 /PRNewswire/ -- Global biotherapeutics leader CSL today announced a reported net profit after tax of US$3.0 billion for the 12 months ended 30 June 2025, up 17% on a constant currency basis. Underlying profit (NPATA) was US$3.3 billion, up 14% on a constant currency basis.

Dr. Paul McKenzie, CSL's Chief Executive Officer and Managing Director said, "I am pleased to report another on-target result for the 2025 financial year, led by CSL Behring and continued strong demand for our life-saving plasma therapies.

"CSL Seqirus continued to show the resilience of its differentiated portfolio and platforms by generating growth in a challenging environment. CSL Vifor grew strongly, underpinned by our resilient iron business and pleasing momentum across the nephrology portfolio," Dr. McKenzie said.

Today, the company announced a suite of strategic transformation initiatives designed to ensure continued growth and resilience in a complex operating environment.

"Our business has grown this year despite an unprecedented level of challenge and volatility in our external operating environment. Today we are announcing transformational initiatives to reshape and simplify the business, enhance clinical and commercial execution and provide a platform for CSL to focus on our core strengths," Dr. McKenzie said.

"These changes are designed to focus our organisation on three Ps: Pipeline, Productivity and People. They will make us match-fit and instil a lean and efficient mindset, reduce complexity and simplify our operating model."

A summary of these initiatives is outlined below:


     
              Driving Growth, Simplification and Shareholder Returns





     
              Research &                                                                                                              
            
              Operating                                    
     
              Plasma

       Development                                                                                                                      
              Model                                                 
       Network


      CSL remains steadfast in its commitment to innovation and will drive specific changes that increase the speed of translational              To enhance clinical and commercial execution, a           The demand profile for CSL products requires
       research into the clinical setting, while continuing to offer life cycle management expansion to our portfolio.                             distinctive new Portfolio Development and                 continued growth in the supply of plasma proteins.
                                                                                                                                                   Commercialisation (PD&C) operating model will
                                                                                                                                                   integrate R&D, Business Development, and Commercial
                                                                                                                                                   teams.



      CSL will reduce the proportion of fixed cost in overall spend, and implement initiatives to increase pipeline productivity,                 CSL Behring and CSL Vifor will also combine medical and   The successful rollout of Rika and iNomi have
       including consolidation of R&D footprint.                                                                                                   commercial functions, delivering further synergies and    driven expected efficiencies, as have
                                                                                                                                                   additional revenue growth opportunities.                  manufacturing process improvements, creating
                                                                                                                                                                                                             opportunities to optimise CSL's plasma collection
                                                                                                                                                                                                             network.



      The savings will be directed towards priority programs and developing new disease targets from both internal and external sources.          Corporate functions will be streamlined to align to       In August 2025 we closed 22 underperforming
                                                                                                                                                                                                             centres, representing 7% of CSL Plasma's US
                                                                                                                                                                                                             footprint.
                                                                                                                                         the new operating model.

The initiatives will result in a net headcount reduction of up to 15% of CSL's employee base.

One-off restructuring costs are expected to be approximately $700-$770 million (pre-tax) and $560-$620 million (post-tax), all to be recognised in Financial Year 2026. The cash flow impact is expected to be $400-$450 million in Financial Year 2026, with a further $100 million expected in Financial Year 2027.

The initiatives are expected to drive annualised cost savings of $500-550 million progressively over the next three years, with the majority achieved by the end of Financial Year 2027. CSL will look to balance the reinvestment of these savings in high priority opportunities, with the need to deliver sustainable, profitable growth.

Intention to demerge CSL Seqirus to shareholders, creating an ASX-listed global vaccine leader

CSL today announces its intention for CSL Seqirus to be demerged as a substantial ASX-listed entity before the end of Financial Year 2026.

CSL Seqirus is a global leader in seasonal influenza vaccines, with a highly differentiated and market leading product portfolio centred around innovations in cell and adjuvant technologies.

A demerger will allow autonomy to set an independent strategic direction, including capitalising on potential opportunities that may arise in a highly dynamic vaccines market, as well as reducing complexity, making the business more agile and efficient to manage.

The company will be chaired by Mr Gordon Naylor, an experienced company director and former President of CSL Seqirus.

The remaining CSL group will continue to have leading market positions in multiple rare and serious diseases. These franchises have a long track record of delivering value to shareholders, and their scalable platforms will continue to benefit from the positive long-term outlook and demand for their therapies.

Both entities will have a sustainable capital structure and access to funding to pursue separate but distinct growth strategies.

The demerger will be subject to third party consents, regulatory approvals and CSL will conduct a voluntary shareholder vote.

Capital management

CSL will recommence a share buyback program. This will be a multi-year, on-market share buyback, starting with A$750m in Financial Year 2026, and is expected to progressively increase over the medium-term. The program will enhance capital efficiency and improve shareholder returns.

Joy Linton, CSL's Chief Financial Officer said, "CSL is focused on an efficient and disciplined capital management strategy and is committed to maintaining a strong balance sheet. CSL's net debt / EBITDA ratio has continued to decline and is now below two times which provides opportunities to invest in high returning growth initiatives and external partnerships, while also returning additional cash to shareholders."

The buyback will be in addition to the final dividend of US$1.62 per share. The timing and value of shares purchased will be dependent on the prevailing market conditions, share price, opportunities to deploy capital, and other factors.

Driving growth, simplification and shareholder returns

Commenting on the strategic updates, Dr. McKenzie said, "We firmly believe that a simplified and focused CSL is best for patients, best for our people, and best for our shareholders. The changes announced today will deliver enduring patient value and durable shareholder returns."

Dr. Brian McNamee AO, Chair of CSL said, "The Board and Management team are unified in our confidence in the outlook for CSL. We also recognise the need to simplify our structure and remain agile in order to capture this growth. The significant initiatives Paul and his team have outlined today will provide CSL with a renewed focus that will improve shareholder returns.

This demerger of CSL Seqirus to our shareholders will create an ASX-listed, global influenza vaccine leader. The company has a great future that will be driven by its strong competitive position in an improving market."

Further detail will be provided at CSL's Capital Markets Day on 4 to 6 November 2025 in the United States.

Financial Year 2026 Outlook

Commenting on CSL's outlook, Dr. McKenzie said:

"Financial Year 2026 group revenue growth is anticipated to be approximately 4-5% over Financial Year 2025 at constant currency.

"In CSL Behring, we anticipate continued robust demand for our core therapies, as well as the uptake of newer products such as ANDEMBRY^® and HEMGENIX^®. With the roll-out of the RIKA and iNomi platforms now complete, gross margin is expected to continue to improve.

"In Financial Year 2026, CSL Seqirus expects seasonal influenza revenue to stabilise, driven by improving performance in key US segments and launches in other major geographies. We anticipate a substantially lower contribution from avian influenza and COVID-19 than in the prior Financial Year.

"CSL Vifor is well positioned to maintain market leading positions, despite new entrants into the iron market. The nephrology franchise will continue to benefit from the ongoing success of therapies such as TAVNEOS^® and FILSPARI^®.

"CSL's NPATA for FY26, excluding the non-recurring restructuring cost, is anticipated to be in the range of approximately $3.45 billion to $3.55 billion at constant currency, representing growth over FY25 of approximately 7-10%.

"This guidance assumes no impact from pharmaceutical sector tariffs. It is our current expectation that any such policy would not impact our ability to deliver on the strategic initiatives outlined today. CSL has significant operations in the US and the majority of our commercial portfolio is domestically sourced."

"I look forward to keeping the market updated on our progress as we deliver sustainable, profitable growth."

Further information:

For more information on CSL's results and strategy updates announced today, the company will host a briefing at 10am AEST on 19 August, 2025 which can be accessed via CSL's investors website.

Additional details about CSL's results are included in the company's 4E statement, investor presentation slides and webcast, all of which can be found on CSL's website www.csl.com.

Media Contacts
Brett Foley
Mobile: +61 461 464 708
Email: brett.foley@csl.com.au

Hamish Walsh
Mobile: +61 422 424 338
Email: hamish.walsh@seqirus.com

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