AFT Pharmaceuticals faces financial setback

AFT Pharmaceuticals (ASX:AFP, NZX:AFT) has announced an expected operating loss of nearly $2 million for the six months ending 30 September 2024. This loss is due to decreased sales in international and Asian markets caused by factors such as stock level adjustments by major customers and a doctors' strike in South Korea. Despite these challenges, AFT has achieved double-digit growth in Australia and New Zealand.

Outlook and future initiatives for AFT Pharmaceuticals

AFT Pharmaceuticals is navigating challenges in international and Asian markets, resulting in an anticipated operating loss. The company attributes this to one-off factors like stock level adjustments and a doctors' strike in South Korea. Despite these setbacks, AFT is investing in expanding its presence in new territories, including North America and Europe, anticipating a sales recovery in the second half of the financial year. With net debt at $19.4 million as of September 2024, AFT remains committed to leveraging its strong demand for a broader medicine portfolio. The company plans to update its full-year guidance on 21 November 2024, as it continues to negotiate contracts and assess new initiatives.

Executive commentary on AFT's performance

The decrease in sales to our international markets was driven by major customers resizing stock levels. This is an issue that did not impact in-market sales, which remain strong. In Asia, a doctors' strike in South Korea significantly impacted our sales of Maxigesic IV. Despite these challenges, we have experienced double-digit growth in Australia and New Zealand.