AFT Pharmaceuticals Posts NZD 114.9m Revenue, Returns to Profit in 1H FY26

Strong Financial Performance Amid Recovery

AFT Pharmaceuticals has reported a compelling turnaround in its interim results for the six months ending 30 September 2025. The company achieved a 33% increase in operating revenue to NZD 114.9 million, marking its tenth consecutive first-half revenue growth since listing. This surge was primarily driven by a 31% uplift in Australian sales, complemented by significant rebounds in Asian and international markets that had faced disruptions in the previous period.

Operating profit swung positively to NZD 4.7 million from a loss of NZD 1.8 million a year earlier, while net profit after tax improved to NZD 2.7 million, reversing a prior loss. EBITDA also reflected this recovery, rising to NZD 6.6 million. The company attributes this performance to the normalization of trading conditions, particularly in Asia, and ongoing strategic execution.

Expanding International Footprint

AFT is actively developing its international business hubs, with the United Kingdom and South Africa poised to contribute earnings in the second half of FY26. In the UK, the rollout of Maxigesic products (marketed as Combogesic) has expanded to thousands of pharmacies and NHS hospitals, including the London Northwest University Healthcare NHS Trust, a key milestone for broader NHS adoption.

South Africa’s product launch schedule has accelerated dramatically, increasing from four to eighteen planned launches within the financial year, targeting the private hospital market. Meanwhile, the Canadian operation, led by an experienced executive team, launched Combogesic IV and is preparing further product introductions, signaling a methodical approach to North American market entry.

Robust R&D Pipeline and Licensing Success

Research and development expenditure increased to NZD 9.5 million, reflecting progress across a diversified portfolio including pain management, dermatology, and eye care. Noteworthy advancements include preparations for a large global Phase III study of the intravenous iron therapy following positive earlier trials, and the filing of pre-IND applications with the US FDA for antibiotic eyedrops and topical treatments for strawberry birthmarks.

The company also secured five out-licensing agreements in the half, highlighted by a significant deal with China’s Grand Life Sciences Group for its novel IV iron therapy. This partnership includes upfront payments, milestones, royalties, and shared funding for global clinical development, underscoring AFT’s strategy to monetize intellectual property while expanding geographic reach.

Financial Position and Outlook

AFT maintains a strong balance sheet with net debt of NZD 20.9 million, within its target leverage range, supporting ongoing investments in growth initiatives. The company is in advanced discussions to renew its banking facility, ensuring continued financial flexibility.

Looking ahead, AFT reiterates its guidance to deliver an operating profit within NZD 20-24 million for FY26 and remains confident in achieving NZD 300 million group revenue in FY27. This outlook is underpinned by a robust launch pipeline, scaling international hubs, and a growing licensing program that diversifies revenue streams and enhances resilience.

While short-term earnings are impacted by investments in R&D and international expansion, AFT’s disciplined execution aims to extend its long-standing record of uninterrupted growth and shareholder value creation.