AFT Pharmaceuticals

NZ: AFT

NZD$407m market cap

NZD$4.05 last close

AFT Pharmaceuticals is a specialty pharmaceutical company that operates primarily in Australasia but has product distribution agreements across the globe. The company’s product portfolio includes prescription and over-the-counter drugs to treat a range of conditions and a proprietary nebuliser.

Investment summary

AFT Pharmaceuticals is a profitable New Zealand-based specialty pharmaceutical company that sells 130 prescription specialty generics and OTC products through its own sales force in New Zealand, Australia and South-East Asia, and has been expanding its geographic footprint. AFT Pharmaceuticals recently reported its FY20 results. Operating revenue grew by a strong 24.0% year-on-year to NZ$105.6m as there was at least double-digit growth across all regional segments and triple-digit growth in South-East Asia. Importantly, the company reported operating profit of NZ$21.2m (including a NZ$9.8m non-recurring gain), up from a reported NZ$6.1m the year before, and is guiding for operating profit of NZ$14–18m in FY21.

Y/E Mar
Revenue (NZ$m)
EBITDA (NZ$m)
PBT (NZ$m)
EPS (c)
P/E (x)
P/CF (x)
2019A 85.1 5.8 (2.5) (2.70) N/A 41.0
2020A 105.6 10.3 2.8 2.69 150.6 17.9
2021E 125.1 18.2 15.5 15.40 26.3 21.2
2022E 146.5 29.5 27.2 23.23 17.4 13.0
Industry outlook

AFT is a multi-product company targeting pharmacy prescription, OTC and hospital markets. Data for Maxigesic offer it a competitive advantage in a fragmented industry.

Last updated on 02/07/2020
Sector
Healthcare
Share price graph
Balance sheet
Forecast net debt (NZ$m) 24.6
Forecast gearing ratio (%) 72
Price performance
%
1m
3m
12m
Actual (11.6) 1.0 35.0
Relative* (15.0) (13.2) 27.1
52-week high/low NZ$4.7/NZ$2.7
*% relative to local index
Key management
David Flacks Chairman
Dr Hartley Atkinson CEO
Malcolm Tubby Chief Financial Officer
Michael Weinmann Member of the Board of Directors
Nathan D. Hukill Member of the Board of Directors