AFT Pharmaceuticals Limited Analysis

Overview

AFT is a growing multinational pharmaceutical company that develops, markets and distributes a broad portfolio of pharmaceutical products across a wide range of therapeutic categories which are distributed across all major pharmaceutical distribution channels: over-the-counter, prescription and hospital. AFT's product portfolio comprises both proprietary and in-licensed products, and includes patented, branded and generic drugs.

Performance

The following information was extracted from AFT Pharmaceuticals Limited's full year results, released on 22 May 2025:

FINANCIAL RESULTS FOR THE YEAR TO 31 MARCH 2025

AFT sees strong FY 26 as revenue reaches new record

AFT Pharmaceuticals (NZX:AFT, ASX:AFP) today reports it has again achieved another year of record revenue with annual sales exceeding $200 million1 and it is now firmly focused on its revenue target of $300 million by the end of the 2027 financial year.

The diversified pharmaceuticals company reports continued strong growth in its core Australasian business, while the expected robust recovery in its Asia and International businesses during the second half year, have lifted revenue for the year to the end of March 2025 to another record of $208.0 million, a 6% increase over FY 24.

Operating profits have meanwhile reached $17.6 million in line with guidance given at the half year, lifted by the growth in revenue and expansion of product margins. These gains were diluted by the significant one-off events flagged in 1H 25, including destocking by several of our largest customers and a since resolved doctors’ strike in South Korea that impacted both sales and earnings.

HIGHLIGHTS

• Full year operating revenue up 6% to $208.0 million, lifted by 11% growth in product sales and royalties across all territories and $0.7 million of licensing income

• Strong Australian sales growth of 17%, offset by the one-off factors of destocking and interruptions to demand for Maxigesic IV in 1H 25

• EBITDA2 of $20.9 million down 20% and operating profit of $17.6 million down 27%, in line with guidance given at the half year

• Operating profit in Australia rose 65% following growth investments made last year delivering the expected benefits

• Net profit after tax decreases 23% to $12.0 million

• Balance sheet strong with net debt of $14.5 million down from $16.2 million at the end of FY 24 and $29.9 million at the end of FY 23 despite significant investments for growth

• Consistent with confidence in outlook an increased dividend declared of 1.8 cents per share, (1.6 cents declared FY 24)

• $200 million revenue exceeded and now focused on the $300 million target

• Ongoing significant investment with FY 26 guidance for increased operating profit of $20 million to $24 million.