Shares in AFT Pharmaceuticals Ltd (ASX: AFP) are trading higher after the company announced a 24% increase in profit on strong revenue growth.
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Solid full-year effort
The company said in a statement to the ASX that net profit had increased to NZ$14.1 million on revenue of NZ$254.7 million, up 22%.
The company will pay a dividend of NZ2.5 cents per share and gave guidance for operating profit in FY27 of NZ$28 to NZ$32 million, up from NZ$24.4 million.
The company is also targeting increased revenue of NZ$300 million for the current financial year, with the company's reporting period running until the end of March.
AFT chair David Flack said it was another strong result, "reflecting the strength of our core Australasian business and the benefits of our increasing geographic and product diversification''.
He added:
We have continued to invest for long-term value creation – progressing international hubs, executing licensing opportunities, and advancing a portfolio of valuable innovative products that can support our ambition to exceed $300 million sales this financial year.
Revenue growth in FY26 was driven by continued momentum in Australia, steady expansion in New Zealand, and a growing contribution from AFT's International and Asian hubs as they scale.
The company said:
Australasia remained the cornerstone of AFT's earnings and cash generation, growing revenue by 16% to reach $210.5 million. In the Australian market we saw broad-based strength across OTC brands and ongoing uptake across prescription medicines. The growth was also supported by a steady stream of new launches and portfolio expansion which remains a key focus. New Zealand delivered steady growth with continued opportunities across key categories including allergy, dermatology and eyecare.
Expanding in known markets
The company said it was continuing its strategy of building international business hubs in markets that share similar commercial and regulatory dynamics to its Australasian operations.
The company said:
During FY26, the company continued to expand its footprint across the UK, Europe, North America, and South Africa, progressing each hub along the path from establishment to development. In the United Kingdom, AFT continued to broaden distribution of Maxigesic tablets (marketed as Combogesic) from Boots and SuperDrug to now include independent pharmacies. The initial launches of Combogesic IV in several London NHS hospitals continued to progress, with sales momentum linked to formulary inclusion.
In Europe, the company said it was making progress with a portfolio of injectables acquired from an insolvent company, "with updated regulatory dossiers and licenses now supporting planned EU launches that are expected to make a meaningful contribution in FY27''.
The company said it was well-funded, with net debt of $38.6 million at the end of March, within its target leverage range.
AFT shares were 2.4% higher in early trade at $2.93. The ASX healthcare company is valued at $299.9 million.
