The CSL Limited (ASX: CSL) share price continued its market-beating form in August with another solid gain.
The biotherapeutics giant's shares finished the period with a gain of 5.2%, stretching their year to date return to almost 40%.
Why did the CSL share price charge higher in August?
Investors were buying the company's shares last month after it reported another strong full year result.
In FY 2019 CSL posted revenue of US$8,539 million and a net profit after tax of US$1,919 million, which was an 11% and 17% constant currency increase, respectively, on FY 2018's results. The latter was at the upper end of its guidance range of US$1,880 million to US$1,950 million, exactly as management had promised.
Once again it was CSL's Immunoglobulins sales which were the key driver of its growth. Immunoglobulins sales increased 16% on the prior corresponding period to US$3,543 million in FY 2019.
Supporting this growth was a 6% lift in Speciality sales and a 15% jump in Albumin sales, leading to the CSL Behring business reporting an 11% increase in total revenue to US$7,343 million during the 12 months.
The company's Seqirus influenza vaccine business also performed strongly in FY 2019. The Seqirus business posted a 12% increase in total revenue to US$1,196 million. This solid result was driven by a 19% increase in the sales of seasonal influenza vaccines.
Also catching the eye of investors was management's guidance for the year ahead. Despite the one-off financial headwind of transitioning to a new model of direct distribution in China, management expects solid profit growth in FY 2020.
It has provided guidance for net profit after tax in the range of approximately $2,050 million to $2,110 million in constant currency, which represents annual growth of approximately 7% to 10%.
Is it too late to invest?
Although I think its shares are arguably fully valued now, if you're looking for long-term investments then I would still be a buyer of its shares today. This is due to the quality of the company and its solid long-term growth potential thanks to its current portfolio and potentially lucrative product pipeline.
In addition to CSL, I think Cochlear Limited (ASX: COH) and ResMed Inc. (ASX: RMD) would be outstanding buy and hold options in the healthcare sector.
