The CSL Limited (ASX: CSL) share price had a relatively solid month in August.
The biotherapeutics company's shares rose almost 2% over the period. This compares favourably to the 1.4% decline recorded by the benchmark S&P/ASX 200 Index (ASX: XJO).
Why did the CSL share price outperform in August?
Investors were bidding the CSL share price higher last month after the company released its FY 2023 results.
For the 12 months ended 30 June, CSL reported a 31% increase in constant currency revenue to US$13.31 billion. This was driven by growth across the business, together with an 11-month contribution from the new CSL Vifor business.
On the bottom line, the biotherapeutics giant delivered net profit after tax before amortisation (NPATA) growth of 20% in constant currency to US$2.86 billion. This was ahead of the company's FY 2023 guidance range of US$2.7 billion to US$2.8 billion.
Also going down well with investors was the company's expectations for FY 2024, which remain consistent with previous guidance.
CSL's CEO, Dr Paul McKenzie, revealed that he continues to expect:
For FY24, revenue growth is anticipated to be approximately 9-11% over FY23 at constant currency. CSL's underlying profit, NPATA for FY24 is anticipated to be in the range of approximately $2.9 billion to $3.0 billion at constant currency, representing growth over FY23 of approximately 13-17%.
What else?
The broker community responded relatively positively to the result, with a number of analysts reiterating their buy ratings.
For example, Morgans has held firm with its add rating and lifted its price target to $328.20. This implies a potential upside of 21% for the CSL share price over the next 12 months.
The broker commented:
CSL Ltd's FY23 results were in line with the pre-release at the top of guidance, with underlying net profit up double-digits on strong sales growth across all segments. While plasma collections have recovered to record levels, with covid challenges well and truly in the rearview mirror, Behring cost per litre (CPL) (while improving slightly) remains elevated, pressuring GM. Management remain confident in modest near term GM improvements, returning to pre-covid levels over the medium term, driven via numerous initiatives (eg op efficiencies; yield improvement; new products; mix shift; and scale benefits).
