The share price of CSL Limited (ASX: CSL) went up 1% today after reporting its result for the six months to 31 December 2019.
CSL's growth
CSL announced that it continues to deliver "strong" profit growth with net profit after tax (NPAT) of almost US$1.25 billion, which was up 11% in constant currency terms. Earnings per share (EPS) also grew by 11% in constant currency terms.
The healthcare giant said that there was strong growth in immunoglobulin products, the transition to own distribution model in China is progressing well, there has been continued evolution of the haemophilia therapies portfolio and the Seqirus influenza vaccines business delivered another strong performance.
Major capital projects at all manufacturing sites are progressing to support future demand and 20 new US plasma collection centres were opened in the first half.
CSL dividend
CSL grew its interim dividend to US$0.95 per share. When converted to Australian currency, the interim dividend is approximately AU$1.42 per share – growth of 18%.
Upgraded CSL profit
CSL said it was upgrading its profit expectations for FY20 to be in the range of US$2.11 billion to US$2.17 billion which reflects growth of between 10% to 13% over FY19, which includes the one-off financial impact of transitioning to a new direct distribution model in China.
Is CSL a buy?
It is probably the highest-quality business within the ASX20. It's a great business and continues to invest in research & development for future profits for longer-term growth. There's a lot to like, it's a great business, but it's expensive – as all good, growing businesses are. I'd only buy a small parcel at today's price.
