AFT Pharmaceuticals Posts NZ$208M Revenue Up 6%, Profit Falls 23%
AFT Pharmaceuticals reported a 6% increase in revenue to NZ$208 million for the year ending March 2025, but net profit fell 23%, prompting a modest final dividend declaration.
- Revenue rises 6% to NZ$208 million
- Net profit declines 23% to NZ$12 million
- Final dividend declared at NZ$0.016 per share
- Net tangible assets per share increase to NZ$0.37
- Audited financial statements and detailed commentary released
Revenue Growth Amid Profit Pressure
AFT Pharmaceuticals Limited has reported a solid 6% increase in revenue for the 12 months ending 31 March 2025, reaching NZ$208.021 million. This growth underscores the company’s ability to expand its sales footprint in a competitive pharmaceutical market.
However, the positive top-line momentum was offset by a 23% decline in net profit, which fell to NZ$11.962 million. This divergence suggests rising costs or margin pressures that have impacted the bottom line despite higher sales.
Dividend and Balance Sheet Highlights
In light of these results, AFT Pharmaceuticals declared a final dividend of NZ$0.016 per share, payable on 4 July 2024. While modest, this dividend reflects the company’s commitment to returning value to shareholders even as profitability faces headwinds.
Net tangible assets per share increased from NZ$0.33 to NZ$0.37, indicating a strengthening balance sheet position. This improvement may provide some cushion for the company as it navigates the challenges affecting profitability.
Outlook and Market Implications
The company’s full audited financial statements and detailed results commentary, released alongside this announcement, will offer deeper insights into the factors driving the profit decline. Investors will be keen to understand whether this is a temporary setback or indicative of longer-term cost pressures.
Maintaining compliance with NZX Listing Rules and ASX requirements, AFT Pharmaceuticals continues to operate transparently, which should reassure stakeholders amid mixed financial signals. The market will watch closely for management’s strategic response in the coming months.
Bottom Line?
AFT’s revenue growth masks profit challenges that will test its resilience and strategic agility.
Questions in the middle?
- What specific factors contributed to the 23% drop in net profit despite revenue growth?
- How sustainable is the current dividend given the profit decline?
- What cost management or operational changes is management planning to restore profitability?
