AFT Pharmaceuticals Limited (AFT) H2 2025 earnings summary

Executive summary

• Achieved record NZD 208 million in sales, up 6% year-over-year, with strong growth in Australia and New Zealand and ongoing global expansion; sales now span nearly 80 countries, with agreements in over 100.

• Targeting NZD 300 million in sales by FY 2027, supported by new market launches, a robust R&D pipeline of eight patented products, and additional injectables.

• Operating profit declined to NZD 17.6 million from NZD 24.2 million, mainly due to lower licensing income, 1H25 disruptions, and strategic investments.

• Net profit after tax was NZD 11.4 million, down 27% from NZD 15.6 million in FY24.

• Significant investments made in new affiliates in North America, U.K., and South Africa.

Financial highlights

• Product sales and royalty income rose to NZD 207.4 million, up 11% year-over-year, while license income dropped to NZD 0.7 million from NZD 8.5 million.

• Gross profit rose by NZD 3.5 million, with gross profit from product sales and royalties growing 14.5%, and gross margin on product sales and royalties improved to 43.9%.

• EBITDA was NZD 20.9 million, down from NZD 26.2 million in FY24.

• Net debt reduced to NZD 14.5 million from NZD 16.2 million, and dividend increased from NZD 0.016 to NZD 0.018 per share.

• Total equity increased to NZD 97.1 million from NZD 87.8 million.

Outlook and guidance

• Targeting NZD 300 million in sales by FY 2027, with FY 2026 EBIT guidance of NZD 20–24 million.

• Growth to be driven by new product launches, international expansion, and improved profitability from commercialisation.

• Expecting continued mid-teens growth in Australia and New Zealand, with significant contributions from new international markets.

• Ongoing significant investment in R&D and international expansion anticipated to support future growth.