AFT Pharmaceuticals sales boost

AFT Pharmaceuticals (ASX: AFP, NZX: AFT) announced record sales for the six months ending September 2024, driven by robust growth in its Australasian market. Despite this, the company incurred an operating loss due to reduced sales in international and Asian markets, caused by temporary factors including a doctors' strike in South Korea. AFT expects a recovery in the latter half of the fiscal year.

Outlook and strategic goals

AFT Pharmaceuticals recorded a 4% increase in operating revenue to $86.7 million, with Australasian revenue rising by 17%. However, international and Asian revenues declined due to specific temporary events, leading to an operating loss of $1.8 million. The company projects an operating profit between $15 million to $20 million for the fiscal year ending March 2025. AFT aims to accelerate sales in the second half of FY25, focusing on new product launches and resolving earlier disruptions. Strategically, AFT is expanding its presence in North America, the UK, Europe, Singapore, Hong Kong, and South Africa, and is pursuing licensing negotiations for Maxigesic IV in Brazil and China. With increased R&D expenditure, the company is committed to reaching an annual revenue target of $300 million by FY2027.

Executive insights on performance

We are pleased with the robust growth we have achieved in our core Australasian market despite the challenges presented by temporary disruptions in international markets. We remain confident in our ability to recover in the second half of the financial year, supported by strategic product launches and the resolution of previous disruptions.