Strong Performance and Future Growth
Shares in AFT Pharmaceuticals Ltd (ASX: AFP) are showing positive movement following the company’s announcement of a 24% rise in profit, driven by robust revenue growth. This impressive result highlights the company’s solid performance throughout the full year.
Full-Year Results
In a statement to the ASX, the company revealed that net profit had increased to NZ$14.1 million, with revenue reaching NZ$254.7 million—a 22% increase. The company plans to distribute a dividend of NZ2.5 cents per share. Additionally, it has provided guidance for operating profit in FY27, projecting it to range between NZ$28 million and NZ$32 million, up from NZ$24.4 million in the previous fiscal year.
For the current financial year, AFT is targeting revenue of NZ$300 million, with its reporting period concluding at the end of March. AFT chair David Flack praised the results, stating, “reflecting the strength of our core Australasian business and the benefits of our increasing geographic and product diversification.”
He further emphasized the company’s commitment to long-term value creation, highlighting investments in international hubs, licensing opportunities, and the advancement of innovative products aimed at exceeding $300 million in sales this financial year.
Revenue Growth Drivers
The revenue growth in FY26 was attributed to continued momentum in Australia, steady expansion in New Zealand, and the growing contribution from AFT’s International and Asian hubs as they scale.
Australasia remains the cornerstone of AFT’s earnings and cash generation, with revenue rising by 16% to reach $210.5 million. In Australia, there was broad-based strength across OTC brands and ongoing uptake of prescription medicines. The growth was also supported by a consistent stream of new launches and portfolio expansion, which remains a key focus.
New Zealand delivered steady growth, with continued opportunities across key categories such as allergy, dermatology, and eyecare.
Expanding into Known Markets
AFT is continuing its strategy of building international business hubs in markets that share similar commercial and regulatory dynamics to its Australasian operations. During FY26, the company expanded its footprint across the UK, Europe, North America, and South Africa, progressing each hub along the path from establishment to development.
In the United Kingdom, AFT continued to broaden the distribution of Maxigesic tablets (marketed as Combogesic) from Boots and SuperDrug to include independent pharmacies. The initial launches of Combogesic IV in several London NHS hospitals continued to progress, with sales momentum linked to formulary inclusion.
In Europe, the company made progress with a portfolio of injectables acquired from an insolvent company. Updated regulatory dossiers and licenses now support planned EU launches expected to make a meaningful contribution in FY27.
Financial Position
AFT is well-funded, with net debt of $38.6 million at the end of March, within its target leverage range. AFT shares were 2.4% higher in early trade at $2.93. The ASX healthcare company is valued at $299.9 million.
