CSL’s shares hit an all-time high yesterday after the company issued a bullish outlook statement on top of a very solid 2018-19 result and higher dividend (which was made a lot fatter by the slide in the value of the Aussie dollar in recent weeks).
CSL shares rose more than 8% to an all-time high of $235.755 a share before profit-taking took them back down again where they ended the day up 6% at $234.
The blood products and biotech group forecast its 2019-20 net profit would be up 7% to 10% which was a bit stronger than some investors had been thinking.
The company said it was expecting the 2019-20 profit to be in the range of $US2.050 billion to $US2.110 billion.
Coming on top of record earnings in 2018-19 when full-year profit jumped 17% to $US1.91 billion ($2.81 billion), it’s no wonder the shares bounded ahead yesterday.
The company said revenue in the year to June 30 jumped 11% to $US8.41 billion, from increased demand for its blood-based therapies and its flue fighting products.
In fact, CSL’s seasonal flu vaccine sales jumped 19% in the year.
The dividend is up sharply as well. A final of $US1.00 (or around $A1.48) was declared, taking the total for the year to $US1.85 a share, a rise of 8%. In Australian dollars, the full-year payout will be around $A2.68, up 18% (illustrating the boost from the weaker Aussie currency).
In Wednesday’s statement CEO Paul Perreault said, “Demand for CSL’s plasma and recombinant products continues to be strong. We expect to again outpace the market in growing plasma collections and plan to open around 40 new collection centers in FY20.”
“Investors should note that, as previously announced in June, CSL will transition to a direct distributor model in China, bringing distribution into line with our global operating model for major markets. This will have a one-off financial effect on FY20 albumin sales, which are expected to reduce by approximately $340 – $370 million.”
“Seqirus is expected to continue to perform well and deliver in line with prior guidance, benefiting from product differentiation and process improvement.”
“CSL’s net profit after tax for FY20 is anticipated to be in the range of approximately $2,050 million to $2,110 million at constant currency, representing growth over FY19 of approximately 7-10%. This growth takes into account the one-off financial headwind of transitioning to a new model of direct distribution in China.” Mr. Perreault added.