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HEALTHCARE giant CSL Limited's (ASX: CSL) share price climbed 12.5 per cent after the company almost doubled its net profit guidance for FY17.
In August last year, the company foreshadowed that its FY17 net profit was expected to grow by around 11 per cent at a constant currency compared to the previous financial year.
But the revised forecast released yesterday says that its net profit is expected to grow by around 18 to 20 per cent at a constant currency basis.
Following CSL's market announcement, its share price shot up from $99.12 to $111.50. As recent as December 2016, CSL's shares was at $92.10.
The company says it expects to report a net profit after tax of $US800 million ($A1.1 billion) for the six months ending December 2016. This profit guidance includes a $US20 million knock from foreign currency exchange headwinds.
The sharp profit upgrade has been attributed to strong sales performance, particularly of its immunoglobulins and specialty products in the most recent financial quarter.
Immunoglobulins are used by patients who suffer from poorly functioning immune systems.
The company attributed its size and scale to being able to meet the higher product demand.
"CSL's position as a leading large scale manufacturer, leveraging ongoing investments in plasma collections and commercial capabilities, has enabled the company to respond quickly and fulfil demand arising from current atypical market activity," the company says in a statement to the market.
The company will provide a further forecast update at its half-year results announcement which is scheduled to be released on February 15.
Shares in CSL are still sitting strong at 11.30 am AEST, coming in at $114.23 per share.
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