AFT Pharmaceuticals Eyes $300M Revenue Target After 22% Sales Jump in FY26
AFT Pharmaceuticals puts $300M revenue target within reach after strong FY26 result
In its FY26 investor presentation delivered 21 May 2026, AFT Pharmaceuticals (ASX: AFP) reported total sales of $254.7M, up 22% on the prior year, with operating profit beating guidance and the company’s $300M FY27 revenue target now firmly within reach. The result extends an unbroken record of growth stretching back more than two decades, now accelerating through a disciplined international expansion programme.
Key highlights from the presentation include:
- FY26 total sales: $254.7M (up 22% vs FY25: $208.0M)
- Five-year CAGR: 17.6%; 20-year CAGR: 17%
- Operating profit: $24.4M (up 38%, ahead of guidance; FY25: $17.6M)
- EBITDA: $28.8M (FY25: $20.9M)
- Dividend: 2.5 cents per share, up 39%
- FY27 targets: $300M+ revenue; operating profit of $28M–$32M
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Double-digit growth across every segment drives record performance
Management highlighted that the FY26 result was broadly based, with all three operating segments delivering double-digit revenue growth. No single market carried the result.
Australia — the engine room
Australia remained the primary earnings contributor in FY26. Revenue rose 19% to $150.8M and operating profit increased 19% to $30.3M, supported by broad-based strength across key over-the-counter (OTC) and pharmacy brands as well as ongoing uptake in prescription medicines. New product launches complemented organic performance, and management noted continued opportunities to improve operating leverage as the Australian business scales.
New Zealand — steady cash generator
New Zealand delivered another year of consistent growth, with revenue up 11% to $59.7M and operating profit up 7% to $9.4M. The presentation described New Zealand as an important contributor to group cash generation, providing a reliable base to support AFT’s investment in international expansion and R&D initiatives.
Asia — returned to stronger trading
Asia recorded a materially stronger FY26 result after one-off disruptions affected FY25 trading. The presentation noted that Asia “returned to normalised trading conditions,” with revenue up 41% to $15.6M and operating profit up 111% to $3.8M. China remained a key strategic focus, supported by continued growth in iron and vitamin supplements via cross-border e-commerce, alongside new territory launches into Thailand and Taiwan.
| Segment | FY26 Revenue | FY25 Revenue | Change | FY26 Operating Profit |
|---|---|---|---|---|
| Australia | $150.8M | $127.1M | +19% | $30.3M |
| New Zealand | $59.7M | $53.8M | +11% | $9.4M |
| Asia | $15.6M | $11.1M | +41% | $3.8M |
International hubs scaling — and the investment is working
The presentation framed AFT’s global build-out as a long-term structural investment now beginning to yield measurable returns. International product sales and royalties reached $25.5M in FY26, up 66% from $15.3M in FY25, while licensing income rose to $3.0M from $0.7M in the prior year. Operating losses across the international segment narrowed to ($6.0M) from ($7.3M) in FY25, reflecting revenue growth offsetting ongoing expansion costs. AFT’s medicines are now sold in 87 countries, up from 85 in November 2025 and from just 3 countries in FY15.
Hub-by-hub progress
Management outlined progress across each of the six international hubs:
- UK — Combogesic tablets distributed across 2,500+ stores (Boots, SuperDrug, and independent pharmacies); Combogesic IV gaining NHS formulary listings; breakeven expected FY27
- South Africa — 14 product licences secured via the Pharma Dynamics acquisition; new CEO hired with hospital market experience; expected to contribute to earnings in FY27
- Canada — Combogesic IV launched; CEO and hospital sales team in place; additional product launches planned for FY27
- USA — Selected OTC launches underway with a contract sales force; working with Hikma on Combogesic IV; full Combogesic Rapid launch progressing
- Europe — Acquired product launches commencing in FY27
- Singapore/Hong Kong — Extending into private hospital markets with an expanding product pipeline
Both the UK and South Africa are expected to move to earnings contribution in FY27, directly supporting management’s profit guidance range.
R&D pipeline — eight patented products and significant global market opportunities
For investors assessing the long-term value of a pharmaceutical company, the R&D pipeline matters considerably. It represents future revenue streams beyond current products and can generate licensing income well before a product reaches patients. A deep pipeline with patent protection also provides a competitive moat that is difficult for others to replicate quickly.
The presentation highlighted a pipeline of 8 patented products and 24+ off-patent injectables in development, with R&D spend of $18M in FY26, up from $15M in FY25. Management framed this as deliberate investment, funded by operating cashflows from the Australasian business.
Nine licensing agreements were closed in FY26, with a significant number of additional agreements in negotiation. Distribution and licensing agreements now cover 100+ countries.
| Project | Patent Expiry | Filing Timeline | Market Opportunity (as presented by management) |
|---|---|---|---|
| Stability Project | TBC | 4Q 2027–2Q 2029 | Market >US$6B |
| Iron IV (NCE, positive Phase III) | 2032/2035 | 4Q 2028 | Market US$7.4B by 2033; Phase III global trial of ~1,366 patients being prepared |
| Antibiotic eye drop | 2037/2044 | 4Q 2028 | Analyst estimate >US$1B; IND submission targeted 4Q 2026–1Q 2027 |
| Pascomer (Orphan) | 2040/2044 | 1Q 2028 | Market potential >US$1B even at low penetration; dossier filed in key jurisdictions |
| Injectable Novel Formulation | 2044 | 2Q–4Q 2030 | Market estimated US$3–3.7B by 2032–34 |
Note: Market size estimates are as presented by AFT management in the May 2026 investor presentation and have not been independently verified.
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FY27 outlook — $300M target and expanding profitability
Management outlined a clear set of strategic pillars underpinning the FY27 guidance. The presentation noted that AFT aims to extend its growth record by driving towards a revenue goal of $300M+, supported by the following:
- Continued expansion across Australasian markets
- A strong programme of product launches across international hubs
- Increasing earnings contributions as international hubs scale, with UK and South Africa both expected to move into earnings contribution in FY27
- Continued progress in R&D and regulatory milestones
- An active licensing programme to monetise AFT’s intellectual property and broaden geographic reach
- FY27 operating profit guidance of $28M–$32M (up from $24.4M in FY26)
On the balance sheet, the presentation noted that AFT put in place a $50M debt facility in December 2025, with net debt of $38.6M at 31 March 2026. Total assets grew 28% to $217.0M. The net cash outflow from operating activities of ($9.5M) (compared to a $13.2M inflow in FY25) was explicitly attributed by management to a deliberate inventory build, including geopolitical buffer stock and inventory acquired as part of the South Africa acquisition, as well as ongoing international expansion investment. Management presented this as a strategic positioning decision rather than an indication of operational deterioration.
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