AFT Pharmaceuticals


NZD$430.3m market cap

NZD$4.15 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 (OTC) 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 SE Asia, and has been expanding its geographic footprint. The company recently reported its results for the first half of FY21. Operating revenue grew 4% year-on-year to NZ$48.8m driven mainly by 11% growth in Australia and despite the impact of COVID-19 across the business. Reported group operating profit was NZ$2.4m compared to a normalised NZ$3.9m last year. Importantly, AFT continues to guide to operating profit of NZ$14–18m in FY21. Also, the company appears close to FDA approval for Maxigesic tablets. The only major outstanding issue is a manufacturing inspection that was delayed due to the COVID-19 pandemic.

Y/E Mar
Revenue (NZ$m)
PBT (NZ$m)
EPS (c)
P/E (x)
P/CF (x)
2019A 85.1 6.2 (2.1) (2.3) N/A 42.0
2020A 105.6 10.9 3.4 3.3 125.8 18.4
2021E 117.6 15.4 13.3 12.7 32.7 38.5
2022E 139.4 27.7 25.9 21.3 19.5 23.0
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 04/03/2021
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Share price graph
Balance sheet
Forecast net debt (NZ$m) 22.9
Forecast gearing ratio (%) 55
Price performance
Actual (14.8) (10.8) 9.8
Relative* (9.3) (7.5) 4.9
52-week high/low NZ$5.5/NZ$3.1
*% 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