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Why The CSL (ASX:CSL) Share Price Jumped Almost 7%

The CSL Limited (ASX:CSL) share price rose by almost 7% today after it reported its FY19 result. 

The CSL Limited (ASX: CSL) share price rose by almost 7% today after it reported its FY19 result.

CSL Limited (ASX: CSL) is Australia’s largest (and some might say best) healthcare company, specialising in biopharmaceuticals. Founded in the late 1900s as the Commonwealth Serum Laboratories, CSL was sold by the Australian Government to Australian investors via the share market in 1994 at $2.30 per share, at which time it doubled its size through an international acquisition. Today, CSL is a global leader in blood plasma vaccines (think: the flu) and antivenoms, providing relief for potentially life-threatening medical conditions.

Here’s What Happened

Investors were very pleased to learn that CSL provided net profit guidance of US$2.05 billion to US$2.11 billion in constant currency terms, which would be growth of 7% to 10%. This includes the one-off financial headwind of transitioning to a new model of direct distribution in China.

I think the profit growth would be impressive considering the hit to profit that CSL is expecting in FY20.

In FY19, CSL reported that its net profit after tax (NPAT) increased by 11% to US$1.92 billion for FY19, it rose 17% in constant currency terms. Revenue growth came in at 11%.

The CSL Board declared a final dividend of US$1 per share, bringing the total full year dividend to US$1.85 per share, which was an increase of 8%. In Australian dollar terms the full year dividend is $2.68, an increase of 18%.

It was a solid result and it’s no wonder that investors piled in with the healthcare giant predicting further growth in the near future.

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