Highlights

  • Revenue jumped 22% to a record NZ$254.7 million, driven by double-digit sales growth across all key markets.
  • Net profit rose 24% to NZ$14.1 million, while operating profit exceeded guidance at a record NZ$24.4 million.
  • AFT targets over NZ$300 million revenue in FY27, supported by international expansion, new product launches, and R&D progress.

Overview

How did AFT Pharmaceuticals Limited (NZX:AFT) deliver record Earnings while continuing to invest aggressively in growth? The New Zealand-based pharmaceutical company posted a strong FY26 result, with revenue rising 22% to NZ$254.7 million and operating profit climbing to a record NZ$24.4 million, ahead of guidance. Growth was driven by strong performances across Australasia, Asia, and international markets, alongside increasing licensing income and expanding product sales. Despite higher spending on global Business hubs, acquisitions, and Research and Development, AFT improved profitability through scale and Operating Leverage. The company also signaled confidence in its outlook, declaring a higher Dividend and targeting revenue above NZ$300 million in FY27.

Is International Expansion Becoming AFT’s Next Big Growth Driver?

AFT’s international business is increasingly emerging as a major contributor to its Long-term Growth strategy. Revenue from international markets surged 66%, while Asia delivered a 41% increase, reflecting strong momentum from expansion initiatives. The company continued to strengthen its footprint across the UK, Europe, North America, and South Africa, with product launches, distribution partnerships, and acquisitions supporting growth. AFT’s pain relief Brand Combogesic also expanded across multiple geographies, including the US and UK. While Australasia remains the core earnings engine, management believes scaling international hubs and wider geographic Diversification will make a more meaningful contribution to earnings in FY27 and beyond.

Can AFT’s R&D Pipeline Support Its NZ$300 Million Revenue Ambition?

AFT is backing its growth strategy with significant Investment in research and development, increasing FY26 R&D spending to NZ$18 million and planning to lift that to NZ$25 million in FY27. The company advanced several late-stage projects across pain management, injectables, dermatology, eyecare, and specialty medicines. Key pipeline developments include its intravenous iron therapy, novel injectable partnerships, migraine treatment programs, and paediatric studies for Maxigesic products. AFT is also expanding its out-licensing strategy to monetize intellectual property globally. Management believes this growing pipeline, combined with product launches and regulatory milestones, will support its goal of exceeding NZ$300 million in annual revenue.