AFT Pharmaceuticals Limited (AFT) H1 2025 earnings summary

Executive summary

• Operating revenue rose 4% to $86.7 million for the half-year, driven by double-digit growth in Australasia, while international and Asia sales declined due to one-off events such as customer destocking and a doctors' strike in Korea.

• Operating loss was $1.8 million, mainly reflecting sales disruptions and increased investment in new business hubs and R&D.

• Net debt reduced to $18.9 million, with improved inventory days and supply chain normalization.

• Strategic investments expanded the global footprint, including new offices and product launches in North America, UK, Europe, Singapore, Hong Kong, South Africa, and Canada.

• Licensing negotiations and product launches advanced in major global pharma markets, including Maxigesic IV coverage in nine of the top ten markets.

Financial highlights

• Total revenue reached $86.7 million, up 4% year-over-year, with product and royalty sales up 6%.

• Gross margin on product sales and royalties steady at 41.6%; overall gross margin slightly down to 41.7% from 43.0% due to lower license income.

• Operating loss of $1.8 million, improved from a $3.3 million profit last year; EBITDA loss of $0.7 million; net loss after tax of $2.5 million.

• Operating expenses increased to $38.0 million (43.8% of revenue), reflecting investments in new markets and R&D.

• Cash and cash equivalents at $10.7 million at period end.

Outlook and guidance

• Strong recovery expected in the second half, driven by new product launches and normalization of demand in Asia and international markets.

• Full-year operating profit/EBITDA guidance revised to $15–$20 million, including $1 million in licensing income.

• Directors expect to declare a full-year dividend; dividend of 1.6 cents per share ($1.7 million) paid in July 2024.

• Targeting $300 million in annual revenue by end of FY27, with growth expected across all business segments.