Highlights

  • The company reported record sales in H1FY25 driven by double-digit growth in Australasia.
  • Net loss after tax of NZD 2.4 million was recorded in recent half, down from a net profit of NZD 1.8 million in the previous year.
  • Revenue growth expected to accelerate in H2FY25 and FY25 operating profit is expected to reach NZD 15 million to NZD 20 million.

AFT Pharmaceuticals Limited (NZX:AFT) is a multinational company specializing in the development, marketing, and distribution of a diverse range of pharmaceutical products. The company is listed on the New Zealand Stock Exchange and the Australian Stock Exchange.

Recent financial performance

AFT Pharmaceuticals has reported record sales for the six months ending September 2024 (H1FY25), driven by double-digit growth in its Australasian market despite challenging economic conditions. During the reported period, operating revenue increased 4% to NZD 86.7 million, with robust performance in Australasia offsetting declines in international and Asian markets, where demand from key customers experienced short-term reductions.

The company reported an operating loss of NZD 1.8 million in H1FY25, down from a NZD 3.3 million profit in the previous period, and an EBITDA loss of NZD 0.7 million compared to a NZD 4.1 million gain previously. The period saw a net loss after tax of NZD 2.4 million, a decrease from NZD 1.8 million net profit last year. However, AFT strengthened its balance sheet, reducing net debt by 37% to NZD 18.9 million and lowering inventory levels following pandemic-related supply disruptions.

Outlook

The company anticipates revenue growth for the year ending March 2025 to accelerate in the second half, consistent with patterns observed in previous years. This growth will be driven by a robust pipeline of new product launches, particularly in international markets, the establishment of momentum in new regions, and the normalization of demand following two unexpected but impactful events in the first half of the financial year.

The company now expects to achieve an operating profit of NZD 15 million to NZD 20 million for FY2025. Additionally, the board remains confident in declaring a dividend for the full year.

Looking ahead, the company is focused on its next milestone of reaching NZD 300 million in annual revenue by the end of FY27.

Top 10 shareholders of AFT

The top 10 shareholders of AFT have around 81.45% shareholding of the company. Notably, Atkinson (Hartley Campbell) has the highest interest in the company with 69.53% of shareholding, followed by Accident Compensation Corporation, with 7.17% shareholding.

Share performance of AFT

AFT shares closed at NZD 2.80 per share on 19 December 2024. In the past one year, AFT’s stock has recorded a drop of nearly 17.65%, and in a month, the share price has increased by 10.24%

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 20, 2024. The reference data in this report has been partly sourced from EODHD/Others.