The Clinuvel Pharmaceuticals Ltd (ASX: CUV) share price is in focus after the company posted its tenth straight annual profit and announced a stable, fully franked dividend of $0.05 per share for FY2026.

What did Clinuvel Pharmaceuticals report?

• Revenue declined slightly to $94.0 million, down 1% from FY2025.
• Net profit after tax was $33.9 million, a 6% decrease year on year.
• Cash reserves rose 12% to $252.1 million.
• Expenses held steady, dropping 0.5% to $53.5 million.
• Basic earnings per share slipped 6% to $0.68.
• A franked final dividend of $0.05 per share was declared, matching last year.

What else do investors need to know?

Clinuvel’s profit marks a decade of uninterrupted earnings, which the company credits to disciplined cost controls and strong treatment demand for SCENESSE®. While revenue declined marginally as US sales softened – partly due to competitor programs and a shift in US supply practices – European revenue growth offset this impact.

The balance sheet remains robust, with net tangible assets per share climbing 12%. Operating cash inflow was $36.9 million, and after prepaying income tax, cash reserves still finished notably higher. The steady dividend reflects a commitment to reward shareholders, equating to 9% of free cash generated for the period.

What did Clinuvel Pharmaceuticals management say?

Group Chief Financial Officer Mr Peter Vaughan said:

This position provides us with flexibility to pursue an expansion strategy, continue investing through market cycles in key strategic areas, and allocate capital based on opportunity rather than necessity. As CLINUVEL builds its operations and presence in the capital markets in the United States, we can do so from a position of strength.

What’s next for Clinuvel Pharmaceuticals?

Clinuvel aims to use its strong cash and asset base to drive further growth in North America and other markets. Management will continue to invest in core areas like R&D and the Phase III vitiligo program and expects steady business expansion through diversification.

The company remains confident in self-financing its strategy, thanks to disciplined spending and consistent cash flow. Shareholders can also look forward to continued dividends, subject to cash reserves and performance.

Clinuvel Pharmaceuticals share price snapshot

Over the past 12 months, Clinuvel Pharmaceuticals shares have declined 31%, trailing the All Ordinaries Index (ASX: XAO), which is flat over the same period.

View Original Announcement

The post Clinuvel Pharmaceuticals posts 10th consecutive profit and maintains dividend appeared first on The Motley Fool Australia.

More reading

• Buy, hold, sell: Whitehaven, Endeavour, Neuren Pharmaceuticals shares
• Corporate Travel Management reports FY25 and 1HY26 earnings
• Clarity Pharmaceuticals FY26 earnings: Revenue jumps, losses widen as clinical pipeline progresses
• Why is the ASX 200 falling to a 4-day low today?
• Do leading brokers rate Woolworths shares as a buy following its results?

Motley Fool contributor Laura Stewart has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Building wealth through shares does not need to be difficult.

I think the best approach is to look for strong businesses that can continue to become more valuable over time, and then give them years to do the work.

Here are three ASX shares I would be happy to buy with that approach.

Xero Ltd (ASX: XRO)

Xero has become a major accounting platform for small businesses, but I still think the long-term opportunity is much larger than its current customer base.

Its software helps businesses manage accounting, payroll, payments, and other financial tasks that are central to day-to-day operations.

I like that because once a business becomes comfortable using Xero, the platform can become deeply embedded in how it operates.

The company can keep growing by adding more customers, expanding further across major international markets, and increasing the number of services existing customers use.

I think that gives Xero several ways to keep building on its existing business.

Over a long timeframe, small gains in customer numbers and product usage can add up to a much larger business.

National Australia Bank Ltd (ASX: NAB)

NAB would give this portfolio a more established financial business.

What I like most is its strong position in business banking. Australian companies need funding, transaction accounts, payments, and other banking services as they grow, invest, and manage their day-to-day finances.

That gives NAB the opportunity to build broad relationships with business customers across several products and services.

I also think this part of the market can be attractive over the long term because successful businesses often become more valuable banking customers as they expand.

NAB still has a large personal banking operation, but its business banking strength gives it an area where it can stand out from some of its major rivals.

For me, that makes it a bank stock I would be comfortable holding for many years.

Netwealth Group Ltd (ASX: NWL)

Netwealth provides investment and superannuation technology used by financial advisers and their clients.

I think the long-term opportunity comes from becoming increasingly important to those advisers.

Once client assets and processes are moved onto a platform, changing providers can involve significant work. That gives Netwealth the chance to build long-lasting relationships while continuing to improve the technology advisers use.

Australia’s superannuation system also gives the company a strong backdrop.

Workers keep contributing to retirement savings, while investment returns can increase the amount of money already on platforms.

Netwealth can therefore grow by winning more advisers and clients, while the overall pool of wealth it competes for continues to expand.

I think that combination gives the business plenty of room to become larger over the next decade.

Foolish takeaway

I like these three shares because I can see clear reasons why their businesses could be stronger years from now.

Xero can keep expanding its software platform, NAB can deepen its business banking relationships, and Netwealth can capture more of Australia’s growing investment wealth.

I would be comfortable buying all three and giving those opportunities plenty of time to develop.

The post 3 excellent ASX shares I’d buy for long-term wealth creation appeared first on The Motley Fool Australia.

More reading

• Another RBA interest rate hike could be just weeks away. Here’s what the big banks think
• What on earth’s going on with Xero shares?
• How much superannuation is needed to target a $50,000 annual passive income?
• Netwealth Group FY26 earnings: Record profits, platform and adviser growth
• 2 ASX 200 shares I’d buy and 2 I’d avoid amid a surging Aussie dollar

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Netwealth Group and Xero. The Motley Fool Australia has positions in and has recommended Netwealth Group and Xero. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

A broad index fund can be a great way to build wealth, but some exchange-traded funds (ETFs) take a more selective approach.

If I wanted to give myself a chance of outperforming the wider market over the long term, these are three ASX ETFs I would consider.

Betashares Global Quality Leaders ETF (ASX: QLTY)

The QLTY ETF looks for global companies displaying characteristics such as strong profitability, healthy balance sheets, and relatively stable earnings.

I like this approach because long-term wealth creation often comes from businesses that can keep reinvesting successfully rather than simply being large.

The portfolio includes companies from several industries and countries, so investors are not relying on one particular sector to deliver the returns.

Quality businesses can still become expensive or experience disappointing periods, of course. But over a long timeframe, I think concentrating more money in companies with strong financial characteristics gives the fund a reasonable chance of producing attractive returns.

VanEck Morningstar Wide Moat ETF (ASX: MOAT)

The MOAT ETF takes the idea one step further by considering both business quality and price.

It invests in US companies that have sustainable competitive advantages, or economic moats, while also trading below fair value.

Those advantages could come from strong brands, switching costs, network effects, or other characteristics that make it difficult for competitors to take customers and profits away.

I particularly like the valuation element. Owning a great company does not guarantee a great investment if the starting price is too high. The MOAT ETF regularly adjusts its portfolio towards businesses offering the most attractive combination of competitive strength and valuation.

That gives it a different process from an index that simply puts the most money into whichever companies have the largest market values.

Betashares Australian Quality ETF (ASX: AQLT)

I would also consider applying a quality filter closer to home.

The AQLT ETF invests in Australian shares selected using measures including profitability, earnings stability, and financial leverage.

I think this could be a good alternative to simply owning the entire Australian market.

Traditional market-cap-weighted funds can become heavily influenced by the largest companies and sectors on the ASX. The AQLT ETF instead asks whether a business demonstrates strong financial characteristics.

That can result in a portfolio focused on companies that have already demonstrated an ability to generate strong returns from their businesses.

There is no guarantee that those characteristics will lead to market-beating performance, but I think the process makes sense for investors willing to take a more selective approach.

Foolish takeaway

Trying to beat the market is difficult, and even professional investors regularly fall short.

That is why I would want a clear reason for moving away from a simple index fund.

For me, quality, sustainable competitive advantages, and sensible prices are three characteristics worth backing.

These ETFs package those ideas into diversified portfolios, giving investors a way to pursue outperformance without having to pick stocks themselves.

The post 3 strong ASX ETFs I’d buy to try and beat the market appeared first on The Motley Fool Australia.

More reading

• Why these ASX ETFs are on my watchlist
• 3 super ASX ETFs for beginner investors
• Here are 3 top Betashares ETFs I’d buy now
• 3 strong ASX ETFs for smart investors to buy and hold
• 3 Betashares ETFs I’d buy and hold for 10 years

Motley Fool contributor Grace Alvino has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended VanEck Morningstar Wide Moat ETF. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.