The race to become Australia’s next $100 stock came to an end this morning with CSL Limited slicing through the fabled level like a hot knife through butter.
Apart from being an exceptionally well run company, the fact that the company earns so much of its revenue from offshore at a time when the Australian dollar is falling is clearly benefiting the company, and seeing investors flock to the stock in droves.
Here’s a breakdown of CSL’s first half sales breakdown for the 2014-15 financial year. As you can see, the company earned 91% of its revenue from offshore, including 38% from North America.
And with the Australian dollar falling, shares in CSL have surged in recent years as investors anticipate better results as earnings by the overseas operations are converted back into Aussie dollars. Shares in the company have risen 15% from the start of 2015. Over the same period the Australian dollar has fallen more than 11%.
If there was ever an indication as to why Australian firms should look to diversify and conquer offshore markets, CSL is it.