How AFT Pharmaceuticals Plans to Triple Revenue by FY27 Amid Global Challenges

Strong Revenue Growth Amid Market Challenges

AFT Pharmaceuticals has once again delivered a record financial performance, reporting FY25 revenue of NZD 208 million, a 6% increase over the previous year. This milestone reflects robust growth in its core Australasian markets, particularly Australia where sales surged 17%, alongside a recovery in its Asian and international operations following earlier disruptions.

Despite these gains, operating profit declined 27% to NZD 17.6 million, influenced by one-off events such as destocking by major customers and a doctors’ strike in South Korea, as well as increased investments in growth initiatives and research and development. Net profit after tax fell 23% to NZD 12 million, yet the company maintained a strong balance sheet with net debt reduced to NZD 14.5 million.

Strategic Investments and Geographic Expansion

Management highlighted ongoing investments in new business hubs across North America, the UK, and South Africa, alongside marketing efforts and an expanded R&D program. These initiatives underpin AFT’s strategy to diversify geographically and broaden its product portfolio, reducing reliance on any single market and enhancing resilience against future disruptions.

Notably, AFT has launched Maxigesic tablets in the US and introduced a proprietary antiseptic cream in mainland China, while securing multiple licensing agreements including for Maxigesic IV in China and Brazil. These moves signal the company’s ambition to strengthen its international footprint and capitalize on emerging pharmaceutical markets.

R&D Pipeline Fuels Long-Term Growth Prospects

The company’s research and development efforts have expanded to 13 projects, including promising treatments such as a novel topical keloid scar therapy and an innovative injectable iron deficiency treatment. Collaboration with Belgium’s Hyloris Pharmaceuticals further enhances this pipeline, with three joint projects underway.

While these R&D investments have weighed on short-term earnings, management is confident they will drive sustainable shareholder value. The iron infusion market alone is forecast to reach US$7.4 billion by 2033, highlighting the potential scale of opportunity.

Optimistic Outlook and Dividend Growth

Reflecting confidence in its growth trajectory, AFT declared an increased dividend of 1.8 cents per share, up from 1.6 cents last year. The company expects operating profit in FY26 to rise to between NZD 20 million and 24 million, as it continues to execute on its goal of reaching NZD 300 million in revenue by FY27.

With a diversified portfolio, expanding global presence, and a strong pipeline of new products, AFT Pharmaceuticals appears well positioned to navigate the evolving pharmaceutical landscape and deliver long-term growth.