Image source: shutterstock

Highlights

  • AFT Pharmaceuticals reported a 4% increase in 1HFY25 operating revenue, reaching NZD 86.7 million, driven by growth in its Australasian business
  • Revenue from international and Asian markets dropped significantly due to a temporary reduction in demand from some of the company’s largest customers
  • AFT expects a revenue boost in the second half of FY2025, projects an operating profit of NZD 15 million to NZD 20 million for the year

AFT Pharmaceuticals Limited (NZX:AFT) is a multinational pharmaceutical company that is engaged in the development, marketing and distribution a broad portfolio of pharmaceutical products. Market capitalisation of AFT is NZD 295.7 million.

In the first half of the financial year 2025 (1HFY25), the company reported a 4% increase in half-year operating revenue, reaching NZD 86.7 million, primarily driven by growth in its core Australasian business. However, AFT recorded an operating loss of NZD 1.8 million in 1HFY25, a decline from the operating profit of NZD 3.3 million recorded in the previous corresponding period.

EBITDA also saw a shift in the reported period, with a loss of NZD 0.7 million compared to an EBITDA gain of NZD 4.1 million last year. In 1HFY25, the net loss after tax stood at NZD 2.4 million, down from a net profit of NZD 1.8 million. Revenue from international and Asian markets declined significantly during the reported period, largely due to temporary, substantial reductions in demand from several of the company's largest customers.

Outlook for FY25

The company anticipates a revenue boost in the second half of FY25, in line with trends from previous years. This growth is expected to be driven by a robust schedule of new product launches, particularly in international markets, as well as expanding momentum in new markets.

The company anticipates recording operating profit between NZD 15 - 20 million for the year to the end of March 2025. Directors plan to announce a dividend for the full year.

Looking ahead, the company is focused on reaching an annual rolling revenue target of NZD 300 million by FY2027 end.

Share performance of AFT

AFT shares closed 2.48% lower at NZD 2.82 per share on 6 December 2024. AFT’s shares witnessed a decline of ~17.61% over the past 3 months. And in the past year, the share price has dropped by almost 16.87%.

52-week high of AFT is NZD 3.85, recorded on 7 February 2024 and 52-week low is NZD 2.37, recorded on 19 November 2024.

Note 1: Past performance is not a reliable indicator of future performance.

Note 2: The reference date for all price data, currency, technical indicators, support, and resistance levels is December 6, 2024. The reference data in this report has been partly sourced from EODHD/Others.