AFT Pharmaceuticals (ASX:AFP) Reports Record Annual Revenue
Financial Performance
AFT Pharmaceuticals reported a 6% increase in annual revenue, reaching NZ$208.0 million for FY25. The growth was driven by an 11% rise in product sales and royalties across all territories, with Australian sales up by 17%. Operating profits stood at $17.6 million, in line with half-year guidance, while EBITDA was $20.9 million, down 20%. Net profit after tax decreased by 23% to $12.0 million. The company’s net debt improved to $14.5 million, down from $16.2 million in FY24.
Dividend Declaration
Directors declared an increased dividend of 1.8 cents per share, up from 1.6 cents in FY24. This reflects confidence in the company’s strong outlook despite one-off events that impacted earnings in the first half of the year.
Research and Development
R&D expenditure rose to $15.0 million, supporting the addition of new projects. AFT strengthened its partnership with Hyloris Pharmaceuticals to develop an innovative injectable iron deficiency therapy. The R&D program now includes 13 projects, with five in the commercialisation phase, driving ongoing licensing negotiations.
Outlook
AFT Pharmaceuticals aims to achieve $300 million in revenue by the end of FY27. The company expects operating profit for FY26 to range between $20 million and $24 million, supported by new product launches and the expansion of business hubs in multiple geographies.
Executive Comments
Chair David Flacks stated, “AFT has delivered another strong result, especially when considered against the one-off disruptions in the first half of the year. We have grown in our core Australasian and Asian markets [and] continued to invest for the long term.” Managing Director Dr Hartley Atkinson commented, “…we have significantly advanced our strategy to extend our reach across multiple geographies and added to our R&D pipeline. These efforts have come at the cost
of short-term earnings growth, but we are convinced they will deliver growth in long term
term shareholder value.”
Motley Fool contributor Lauren Surplice has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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