The CSL Limited (ASX: CSL) share price has soared in recent times after management upgraded the company's forecasts for the full year. With the release of the full-year report today, investors can dig into the numbers and see what the company really achieved. Here's what you need to know:
- Revenues rose 17% to $3.7 billion
- Net Profit After Tax (NPAT) rose 12% to $806 million
- Earnings per share rose 14% to $1.76 per share
- Seqirus revenues increased by 14%, and also made a positive contribution to Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA)
- Total debt of $3.5 billion, cash of $885 million
So What?
Sales were strong across most of CSL's portfolio, with much of the growth being driven by Privigen, an immunoglobulin product. Competitors in the U.S. experienced supply constraints, while CSL was able to use promotions and marketing to achieve sales that were higher than previously expected.
Elsewhere, blood and haemophilia products including Hizentra, Idelvion, Afstyla and albumin all grew at double-digit rates, partly due to increased demand and partly due to expansion into new markets in Brazil, China, and Turkey. A more normal flu season and launch of a new shingles vaccine led a recovery in CSL's recently acquired Seqirus' business.
CSL continues to print cash, and with its long-term Research & Development pipeline, investors can see how many treatments are still in development. CSL's R&D expenditure has actually increased in recent years (as has its marketing) and some of its treatments appear quite promising.
Now What?
As I've written previously, CSL's potential is well known to the market. The company has a good track record of developing new products and generating value for shareholders via buybacks. In my opinion, investors have to either patiently wait for a better price, or take a long-term mindset with CSL in order to really benefit from what it has to offer.
