AFT Pharmaceuticals Limited (AFT) H2 2025 earnings summary

Executive summary

• Achieved record annual revenue of NZD 208 million for FY25, a 6% year-over-year increase, driven by strong growth in Australia and New Zealand and ongoing global expansion efforts.

• Operating profit declined to NZD 17.6 million from NZD 24.2 million, mainly due to lower licensing income, one-off disruptions, and increased investment in growth initiatives.

• Net profit after tax was NZD 11.4 million, down 27% from NZD 15.6 million in FY24, reflecting lower licensing income and higher investment.

• Sales now span nearly 80 countries, with agreements in over 100, and significant investments made in new affiliates in North America, U.K., and South Africa.

• Targeting NZD 300 million in sales by FY 2027, supported by global expansion, new market launches, and a robust R&D pipeline.

Financial highlights

• Product sales and royalties rose to NZD 207.4 million, up 11% year-over-year, while license income dropped to NZD 0.7 million from NZD 8.5 million.

• Gross margin on product sales and royalties improved to 44%, up 1 percentage point year-over-year.

• EBITDA was NZD 20.9 million, down from NZD 26.2 million in FY24.

• Net debt reduced to NZD 14.5 million from NZD 16.2 million, and dividend increased to 1.8 cents per share from 1.6 cents.

• Net cash from operating activities was NZD 13.2 million, down 54% year-over-year.

Outlook and guidance

• FY26 operating profit guidance is NZD 20–24 million, with a revenue target of NZD 300 million by FY27.

• Growth to be driven by new product launches, international expansion, and improved profitability from commercialisation.

• Anticipates higher licensing milestone payments in FY26 due to multiple agreements under discussion.