CSL Limited (ASX: CSL) shares solidified their position of one of Australia’s true global leaders.
This morning, CSL delivered profit growth of 17% in constant-currency terms for the FY20 financial year. View Rask Media’s coverage of CSL Ltd FY20 report here.
The CSL share price had weakened in recent months amid concerns about plasma collection and COVID-19 related costs, both seemingly unfounded. All businesses units, except the restructure of the Albumin drug, delivered double-digit revenue growth for the financial year.
The most important Privigen and Hizentra lines were up 20% and 34%, respectively. The result ushered a 9% increase in revenue across the company, 10% increase in reported profits to $2.1 billion and a similar increase in CSL’s full-year dividend.
CSL’s blood plasma centres in full swing
CSL relies on its growing network of blood collection centres in the US, to which it added 40 in 2020, to develop its treatments. Pleasingly, management confirmed all centres remain open and collections fell just 5% versus 2019.
The company announced its intention to open a further 20-30 centres in the next 12 months to solidify its near-monopoly on the market.
My only concern from CSL’s result was the slowdown in sales across the Asia Pacific region, -29%, which was previously flagged and represents a reset of distribution strategy, rather than an outright fall.
The standout in my view was confirmation that the company would spend another $1.6 billion on innovation in FY21, which for comparison is equivalent to the value of the entire market cap or IOOF Holdings Ltd (ASX: IFL).
CSL was one of the few offerings an outlook statement. CSL expects revenue growth of 6-10% and a slight improvement in profit of up to $2.26 billion.
