Highlights

  • AFT Pharmaceuticals reported FY26 Revenue of $254.7 million, up 22%, with operating profit rising to a record $24.4 million.
  • Growth was driven by strong performance across Australia, New Zealand, and rapidly expanding international hubs in Europe, Asia, and North America.
  • The company declared a higher Dividend of 2.5 cents per share and reaffirmed its $300 million revenue target for FY27.

AFT Pharmaceuticals Ltd (ASX:AFP) has reported a positive financial performance for the year ended 31 March 2026, highlighting record Earnings, double-digit revenue growth, and continued international expansion across key pharmaceutical markets.

The company’s shares rose 6.64% to AUD 3.05 on May 21, 2026, reflecting investor response to the robust results and reaffirmed growth outlook. Over the past year, the stock has gained approximately 19.61%, supported by steady earnings expansion and progress in global commercialisation initiatives.

AFT continues to position itself as a diversified pharmaceutical group with operations spanning over-the-counter (OTC), prescription, and hospital markets across multiple geographies, including Australasia, Europe, North America, and Asia.

Revenue Growth Driven by Broad-Based Geographic Expansion

AFT reported total Operating Revenue of $254.7 million, representing a 22% increase compared with the previous financial year. Growth was broad-based across all major operating regions, reflecting the company’s strategy of geographic Diversification and product portfolio expansion.

Australasia remained the core earnings base, generating $210.5 million in revenue, underpinned by strong performance in Australia and steady growth in New Zealand. In Australia, Demand for OTC and prescription medicines remained robust, supported by continued product launches and portfolio expansion. New Zealand delivered consistent growth across therapeutic categories such as allergy, dermatology, and eye care.

International markets contributed significantly to overall growth, with revenue from global hubs rising sharply. European and Asian operations recorded particularly strong performance, supported by increasing product uptake and early-stage scaling of distribution networks. North America also showed progress with new product launches and expanded distribution arrangements.

Licensing income increased significantly to $3.1 million, reflecting growing momentum in out-licensing agreements and milestone payments tied to AFT’s intellectual property portfolio.

Profitability Reaches Record Levels Despite Increased Investment

AFT reported EBITDA of $28.8 million and operating profit of $24.4 million, both representing record levels and exceeding prior guidance. Net profit after tax rose 24% to $14.1 million.

The improvement in earnings was achieved despite continued investment in international expansion, Research and Development, and operational scaling. Operating expenses increased in line with strategic initiatives, including the establishment of international hubs and increased R&D activity. However, expense growth remained below revenue growth, resulting in improved Operating Leverage.

Gross Margin on product sales declined slightly to 42.7%, primarily due to product mix and foreign exchange effects. Management indicated expectations for margin improvement in FY27 as higher-value products and international scaling contribute more meaningfully to the revenue mix.

The company’s financial performance reflects a balance between near-term profitability and long-term investment in pipeline development and global market expansion.

International Expansion Strategy Continues to Scale

AFT’s international development strategy remains a key driver of medium-term growth, with continued expansion across the United Kingdom, Europe, North America, and South Africa.

In the United Kingdom, the company expanded distribution of its flagship pain relief product Maxigesic (marketed as Combogesic), increasing penetration into independent pharmacies alongside established retail channels. Hospital-based uptake of intravenous formulations continued to progress, supported by formulary inclusion in selected NHS facilities.

In Europe, AFT advanced regulatory and licensing preparations for its injectable product portfolio, acquired in 2025. These products are expected to contribute more meaningfully from FY27 as regulatory approvals progress.

North American operations saw the launch of Combogesic IV in Canada and expanded distribution arrangements in the United States. Consumer health products also gained traction through online retail channels, including Amazon, with additional distribution pathways under development.

South Africa emerged as a developing growth hub following the integration of acquired pharmaceutical Assets and expansion of operational capabilities.

Research and Development Pipeline Strengthens Long-Term Outlook

AFT significantly increased investment in research and development, with total R&D expenditure reaching $18 million in FY26 and expected to rise further to $25 million in FY27.

The company’s pipeline includes a broad range of late-stage and early-stage pharmaceutical programs spanning pain management, dermatology, ophthalmology, and injectable therapies. Key developments include a large-scale global intravenous iron study targeting a multi-billion-dollar addressable market, and multiple licensing agreements across international jurisdictions.

Strategic partnerships, including collaborations with global pharmaceutical and Manufacturing organisations, continue to support AFT’s pipeline development and regulatory progress.

The company is also advancing multiple novel therapies, including antibiotic eye drops, migraine treatments, and topical dermatology applications, with several programs moving toward regulatory submission stages in key markets such as the United States and Europe.

This diversified R&D pipeline underpins AFT’s longer-term growth strategy and supports its ambition to expand beyond its core Australasian markets.

Balance Sheet Strength Supports Continued Investment

AFT reported net Debt of $38.6 million at 31 March 2026, an increase from the prior year, reflecting strategic investment in inventory, acquisitions, and Working Capital to support international expansion.

Management indicated that the increase in inventory was partly driven by Supply chain resilience planning in response to geopolitical uncertainty, as well as the integration of newly acquired product portfolios in South Africa.

Despite the rise in debt levels, the company stated that leverage remains within its target range and supported by a newly expanded $50 million financing Facility secured in late 2025.

The company also declared a dividend of 2.5 cents per share, up from 1.8 cents in the prior year, reflecting confidence in ongoing cash generation and earnings stability.

Outlook Anchored to $300 Million Revenue Target

Looking ahead, AFT reaffirmed its target of exceeding $300 million in revenue for FY27, supported by continued expansion across established markets and scaling of international operations.

Growth is expected to be driven by product launches across global hubs, increasing contributions from Europe and South Africa, and ongoing R&D commercialisation activities. Management also anticipates improved margins and operating profit growth in the range of $28 million to $32 million in FY27.

The company’s outlook reflects confidence in its diversified Business model, which combines established OTC and prescription product sales with a growing pipeline of innovative pharmaceutical therapies.

Conclusion

AFT Pharmaceuticals’ FY26 results highlight a company in transition toward a more globally diversified pharmaceutical business, with strong earnings growth supported by expanding international operations and a deepening R&D pipeline. While investment in global expansion and product development continues to weigh on short-term margins and balance sheet leverage, the company’s revenue trajectory and improving profitability suggest strengthening operational scale. The reaffirmed $300 million FY27 revenue target underscores management’s confidence in sustaining growth momentum as international hubs mature and pipeline assets move closer to commercialisation.