AFT Pharmaceuticals reports a robust 33% revenue increase in the first half of FY26, driven by strong ANZ market performance and expanding international presence. The company advances its R&D pipeline and targets NZ$300 million revenue for FY27 amid strategic global expansion.
- 1H FY26 revenue up 33% to NZ$114.9 million
- ANZ sales grow 23%, led by Australia’s 31% increase
- EBITDA turns positive at NZ$6.6 million from prior loss
- Global footprint expands to 85 countries with new launches
- R&D pipeline advances with multiple patented products
Strong Financial Momentum
AFT Pharmaceuticals has delivered a compelling first half performance for FY26, posting total sales of NZ$114.9 million, a significant 33% increase compared to the prior year. This growth was primarily driven by a 23% rise in sales across Australia and New Zealand (ANZ), with Australia alone contributing a 31% revenue uplift. The company’s EBITDA swung to a positive NZ$6.6 million from a loss of NZ$0.7 million in the previous corresponding period, reflecting improved operational efficiency and margin gains.
Operating profit also improved markedly to NZ$4.7 million, reversing a loss of NZ$1.8 million in 1H FY25, despite continued investments in research and development (R&D) and business expansion initiatives.
Expanding Global Reach
AFT’s international footprint now spans 85 countries, up from 80 a year ago, with new market entries including Egypt and Thailand. The company’s global business hubs in South Africa and the UK are expected to start contributing earnings in the second half of FY26, signaling the maturation of its international expansion strategy. Other key markets such as North America, Europe, and Asia continue to see product launches and growing sales, supported by a broad portfolio that includes proprietary and licensed products.
This global expansion is underpinned by strategic partnerships and licensing agreements, including collaborations with entities like Chengdu-based Grand Life Sciences Group and Hikma, which enhance AFT’s ability to commercialize its intellectual property worldwide.
Robust R&D Pipeline Fuels Future Growth
AFT continues to invest heavily in R&D, with an active pipeline of eight patented products and over 24 off-patent injectable formulations in development. Notable projects include the Intravenous Iron Development Project, multiple Maxigesic formulations, and novel therapies targeting conditions such as migraine, dermatological disorders, and gastrointestinal issues.
The company’s R&D expenditure rose to NZ$15 million in FY26, reflecting a commitment to innovation that aims to sustain long-term growth and diversify revenue streams. Several programs have moved from development into commercialisation, contributing to the company’s revenue and licensing income.
Financial Position and Outlook
With net debt at NZ$20.9 million and cash reserves of NZ$11.2 million, AFT is well-positioned to fund ongoing growth investments. Inventory levels are managed prudently to support anticipated product launches in the second half of FY26. The company remains on track to achieve an operating profit within the previously guided range of NZ$20 million to NZ$24 million for FY26.
Looking ahead, AFT expects stronger second half sales and earnings, driven by a robust pipeline of product launches and the scaling of international business hubs. The company maintains its ambitious target of NZ$300 million in annual revenue by FY27, supported by geographic and product diversification that enhances business resilience.
Bottom Line?
AFT Pharmaceuticals’ strong half-year results and strategic global expansion set the stage for accelerated growth and innovation in FY27.
Questions in the middle?
- How quickly will new international hubs in South Africa and the UK contribute to sustained profitability?
- What are the key risks associated with the ambitious R&D pipeline and regulatory approvals?
- How will competitive dynamics in core markets like Australia and Asia impact future revenue growth?