AFT Pharmaceuticals reports $15.6m net profit

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Drug maker AFT Pharmaceuticals has reported a significant lift in full-year profit as sales lifted, debt slashed, and it made progress in new markets with its range of painkiller products.

Key numbers for the year ended March compared with a year ago:

Net profit $15.6m vs $10.7m
Revenue $195.4m vs $156.6m
Dividend 1.6 cents per share vs 1.1 cps
FY25 forecast operating profit $22-25m

The Auckland-based maker of the Maxigesic pain killer reported solid growth as over the counter sales and revenue growth in its home New Zealand and Australian markets underpinned the business.

However, the company also reported progress in growth markets in the US, UK and Asia with sales up 70 percent over the year before.

AFT chairperson David Flacks said the flagship Maxigesic pain relief medicine, which combined paracetamol and ibuprofen, was making inroads in the important US market, and was increasingly available in 71 countries.

“This achievement marks a significant milestone in our journey towards becoming a truly global pharmaceutical company and it is a major achievement for an Australasian company.”

AFT was also close to releasing an antiseptic cream, Crystaderm, in China this year, and has moved four of the seven products in its research and development pipeline into commercial development.

Managing director Hartley Atkinson said its strategy remained increasing sales of its proprietary medicines in key markets, as well as developing new products.

“These growth projects have included the establishment of new business hubs in the US, Canada, further investment in the UK and Europe and setting up in South Africa.”

AFT’s debt level nearly halved to $16.2 million, and it was looking to reduce stocks built up during the pandemic although that was being delayed by shipping disruptions in the Middle East.

“We have also prioritised growth investments over debt reduction, and we still have additional unused debt facilities available,” Hartley said.

He said the company was now looking beyond breaking $200m in annual revenue and aiming for $300m.