AFT Pharmaceuticals Limited (ASX:AFP) Reports Record Sales and Growth Outlook
Record Sales Performance
AFT Pharmaceuticals (ASX:AFP) reported a remarkable half-year operating revenue increase of 4% to $86.7 million, primarily driven by a strong performance in its core Australasian market. Despite experiencing challenges in international and Asian markets due to specific one-off factors, the company remains optimistic about the recovery in the second half of the financial year.
Financial Overview
The operating loss for the first half was $1.8 million, a decline from an operating profit of $3.3 million from the previous year. The net loss after tax was reported at $2.4 million, down from a net profit of $1.8 million. AFT’s net debt decreased significantly by 37% to $18.9 million. The company expects its operating profit for the financial year ending March 2025 to range between $15 million and $20 million, reflecting prior guidance adjustments.
Executive Comments
David Flacks, Chair of AFT Pharmaceuticals, stated, “The first half of the financial year has underscored the value of our strategy to diversify our business across geographies and therapeutic categories.” He expressed confidence in a strong end to the year despite the reduced outlook compared to earlier expectations. Managing Director Dr. Hartley Atkinson highlighted that, “October International and Asia sales were double prior year,” indicating a positive trend moving forward.
Future Outlook and Strategic Initiatives
AFT anticipates revenue growth accelerating in the second half of FY25, supported by strong product launches and market recovery. The company is strategically expanding its market presence in North America, the United Kingdom, Europe, and other regions, preparing for several product launches, including Maxigesic IV. AFT also expects to declare a dividend for the full year and aims for an ambitious revenue target of $300 million by FY2027.
Motley Fool contributor Abbie Stokes has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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