Here’s what could affect CSL shares from the biotech company’s annual general meeting

LLC “KSL” (ASX: CSL) shares are up more than 2% in the last month of trading, outperforming the broader market in that time.

The biotech giant held its annual general meeting (AGM) on Tuesday, and its chairman and CEO made several key remarks.

This announcement was not described as price sensitive, but there are notable points that smart investors are paying attention to.

Both leaders made it clear that the company’s outlook remains optimistic, despite some shareholder concerns over compensation and recent strategic changes.

Here’s what investors should know from the AGM that could impact CSL shares in FY25.

CSL shares in focus following AGM

CSL CEO Dr. Paul McKenzie gave a lengthy speech that covered an equally long list of topics for the biotech company’s shareholders.

McKenzie reiterated the company’s financial guidance for FY25, with revenue growth expected to range between 5% and 7%.

Net income is also forecast to rise 10% to 13% to US$3.2 billion to US$3.3 billion.

Dr McKenzie also said CSL was well positioned to “deliver double-digit annual profit growth over the medium term.”

I’d say this is an important point since many long-term price targets for CSL stock are based on maintaining this growth rate.

Beyond financial performance, the CEO continued to invest in research and development, focusing on expanding product offerings in its core therapeutic areas.

Meanwhile, Chairman Brian McNamee also spoke at the meeting and made a special point about CSL Vifor.

CSL Vifor, whose recent acquisitions have contributed to the development of the nephrology and iron markets, is committed to supporting growth in European markets while addressing pricing challenges.

It has been more than two years since we closed the acquisition of Vifor Pharma. Then, as now, we saw a company with the capabilities, competencies and relationships with CSL that will contribute to our long-term growth program.

That view has not changed, but shareholders know the business faces a number of challenges in the short term. We were prepared for some of them, but others were unexpected.

This is disappointing, but I am confident that the management team has the right plans to drive CSL Vifor’s growth over the long term.

An acquisition may or may not be a major growth lever for the company’s future development. But the CSL chairman certainly believes it will.

In the long term, the focus will remain the same as always for the biotech giant. Delivery of medicines to those in need. Per McNamee:

Our investments have laid the foundation, and with the right skills and talent, our people will get the most out of them. This will provide us with an excellent opportunity to continue to deliver our medicines to our patients while maintaining sustainable, profitable growth into the future.

This will come from the therapeutic areas that we focus on. Significant unmet needs remain in these areas: patients who are not being served and communities who need protection from infectious diseases.

Shareholders’ concerns about remuneration

If CSL’s stock performance at the start of FY25 is anything to go by, shareholders may not be so enthused. The stock has fallen nearly 6% since then.

McNamee addressed expected shareholder disagreements over executive pay, balancing talk of value creation with the need to create competitive global pay structures.

As a multinational corporation, it operates in several jurisdictions, but its executives are primarily located in the United States.

In this context, we compete for talent: this is important for our productivity and our long-term growth. Our compensation structure must attract and retain talented people around the world: including those who can navigate the complex science and manufacturing that underpin CSL.

While CSL’s board of directors believes the current remuneration structure is in the best interests of shareholders, McNamee acknowledged his dissatisfaction:

The Board of Directors strongly believes that our overall remuneration system is consistent with this purpose and is suitable to attract the world’s leading leaders who will drive the next phase of growth for our shareholders.

But we hear your dissatisfaction this year with some aspects of our approach and, of course, I am disappointed by that. I want you to know that we listen and carefully consider the feedback we receive.

Stupid conclusion

There are several talking points that could impact CSL stock following the biotech company’s annual general meeting. Management maintains a positive outlook for the future, including divisions such as CSL Vifor.

The stock is up more than 26% over the past 12 months.