AFT extends growth investment as sales surge

AFT Pharmaceuticals Limited has reported financial results for the six months to the end of September 2023 showing growing demand for its portfolio of medicines, the easing of COVID pressures in most markets and new product launches.

The company is increasing its investment in growth to reach an annual revenue target of $200 million in the near future, resulting in lower operating profits for the year to 31 March 2023 with a range of $18 million to $23 million, down from May guidance of $27 million to $32 million.

Revenue for the six months was up 18% to $65.8 million, with product sales and royalty income up 30%.

Gross profit grew 7% to $28.7 million, with product sales and royalties gross profit up 31%.

Operating profit decreased to $3.5 million, with net profit after tax decreasing to $1.5 million.

AFT has launched 11 products since the end of March 2022 and plans to launch a further 15 in the second half of the year.

The company remains well funded with net debt at the end of the half year of $29.4 million.

AFT expects a stronger second half and is targeting to declare a maiden dividend for the 2023 financial year.