Shares of CSL Limited (CMXHF.PK,CSL.AX,CSLLY) plunged around 18 percent in Australian trading after the biotech firm on Monday announced that it now expects an additional $5 billion impairment charge for fiscal 2026 and 2027, and trimmed outlook for 2026.
The firm also announced the progress of strategic initiatives to drive its next phase of growth.
The firm added that its global search for the next Chief Executive Officer is progressing as planned. It is expected that Interim Chief Executive Officer and Managing Director Gordon Naylor will remain on the CSL Board of Directors as a Non-executive Director following the appointment and transition of the new CEO.
Chief Commercial Officer, Andy Schmeltz, has decided to retire from CSL for personal reasons. Diego Sacristan will assume the role of Chief Commercial Officer of CSL Behring and CSL Vifor, effective July 1.
Naylor said, "Our growth initiatives are working, but the financial benefits will take longer than previously anticipated to materialise. As a result, we have now revised down our 2026 financial year guidance."
For fiscal 2026, the company now expects attributable net profit on an adjusted basis to be around $3.1 billion and revenue to be around $15.2 billion, both on a constant currency basis.
The company previously expected approximately 2 percent to 3 percent growth in revenue and 4 percent to 7 percent growth in adjusted net profit, at constant currency.
CSL said it now expects to recognise around $5 billion of non-cash, pre-tax impairments across fiscal 2026 and 2027, in addition to those announced in the half-year results. The additional impairments include CSL Vifor intangible assets including the product portfolio, and under-utilised property, plant and equipment.
Further, for the year, the company now expects reduced revenues of around $300 million from U.S. Immunoglobulin despite growth in demand; around 200 million from Albumin in China due to declined market value, and around 150 million due to impact of the Middle East conflict, revised HEMGENIX growth and competition in iron.
CSL added that it continues to expect revenue growth in the second half of FY26 for CSL Behring, while CSL Seqirus' financial performance for the year would be moderately stronger than previously anticipated.
In Australia, the shares were trading at A$98.88, down 17.52 percent.
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