AFT Pharmaceuticals Limited (AFT) H1 2025 earnings summary

Executive summary

• Operating revenue rose 4% to $86.7M/NZD 86.7 million, driven by double-digit growth in Australia (19%) and New Zealand (14%), but offset by one-off events in Asia (doctor strike in Korea) and international markets (customer destocking).

• Operating loss of $1.8M, improved from a $3M loss last year, mainly due to sales disruptions and increased investment in R&D and new business hubs.

• Net debt reduced to $18.9M from $30.6M year-over-year, with improved inventory days and supply chain normalization.

• Continued investment in marketing, R&D, and global expansion, despite a small operating loss, to support long-term growth.

• Strategic achievements include new product launches in the US, licensing deals in China and Brazil, and expansion into major global pharma markets.

Financial highlights

• Total revenue reached $86.7M/NZD 86.7 million, up 4% year-over-year; product and royalty sales up 6%.

• Gross margin on product sales and royalties steady at 41.6%; overall gross margin slightly down to 41.7% from 43% due to lower license income.

• Operating loss of $1.8M; EBITDA loss of $0.7M; net loss after tax of $2.5M.

• Operating expenses increased to $38.0M (43.8% of revenue) from $32.7M (39.1%) year-over-year.

• Cash position at $10.7M/NZD 10.6 million at period end.

Outlook and guidance

• Strong recovery expected in H2, driven by new product launches and normalization of demand in Asia and international markets.

• Full-year operating profit/EBITDA guidance revised to $15M–$20M, including $1M in licensing income.

• No change anticipated in dividend policy; intend to declare a full-year dividend.

• Targeting rolling annual revenue of $300M by end of FY27, with growth expected across all business segments.