By David Winning

SYDNEY--Pharmaceutical company CSL on Monday downgraded its annual earnings guidance and signaled another $5 billion of pretax impairments, including for the Vifor business that it acquired for $11.7 billion in 2022.

CSL said it now expects revenue of around $15.2 billion and an underlying net profit of $3.1 billion in the 12 months through June when currency swings are stripped out. The net profit measure, known as Npata, excludes restructuring costs and impairment charges.

In February, CSL had forecast Npata growth of 4-7% excluding one-off costs at constant currency and revenue growth of 2-3%.

"Our growth initiatives are working, but the financial benefits will take longer than previously anticipated to materialize," said Gordon Naylor, CSL's interim chief executive. "As a result, we have now revised down our 2026 financial year guidance."

CSL said demand for immunoglobulin in the U.S. is growing at mid-to-single digit percent, which is consistent with its own expectations. However, it said a normalization of channel inventory would drag down reported revenue by around $300 million.

In China, CSL said it has expanded its share of the albumin market and volumes have stabilized. But it said the market value has declined and this would hit revenue by around $200 million.

CSL said other issues--namely, the Middle East conflict, revised growth for its Hemgenix treatment and competition in iron--would deal an around $150 million hit to revenue.

For its CSL Behring division, CSL said it continues to expect revenue to rise in the second half of the current fiscal year. The business is benefiting from underlying demand and operational improvements.

The financial performance of its CSL Seqirus unit is likely to be moderately stronger than previously anticipated, the company said.

Turning to the new impairments totaling around $5 billion, CSL said these would be recognized across the 2026 and 2027 fiscal years and would be in addition to those announced at its half-year result in February.

"The additional impairments include CSL Vifor intangible assets including the product portfolio," CLS said. "The impairments also include under-utilised property, plant and equipment."

CSL said efforts to recruit a new chief executive are progressing as planned, but there would be a change in its ranks as Chief Commercial Officer Andy Schmeltz has decided to retire. Diego Sacristan will become of CSL Behring and CSL Vifor from July 1.

Write to David Winning at david.winning@wsj.com

(END) Dow Jones Newswires

May 10, 2026 18:43 ET (22:43 GMT)

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