AFP’s FY19 Performance – What investors need to know?

AFT Pharmaceuticals Limited (ASX: AFP) is a growing pharma company with its head office based out of New Zealand. It officially was listed on ASX in December 2015. On 22nd May 2019, the company published its Investor Presentation and Annual Report, capturing the operational and financial performance for FY19, including:

  • Registration of Maxigesic tablets throughout the EU, with first Maxigesic IV registration due in 2019.
  • To Commence Maxigesic Hot Drink Sachets regulatory filings in 2019.
  • Successful completion of Maxigesic Rapid formulation.
  • Development of Maxigesic Cold and flu underway.
  • Ongoing study of Pascomer first large global multicenter.
  • NasoSURF redesign to be completed in May 2019, following human factor studies.

Furthermore, the company witnessed an operating revenue CAGR growth of 13% in the last 10 years. Looking at the revenue by region and channel, the company reported revenues of NZ$50.3 million in FY19 for Australian region compared to the NZ$49.1 million in FY18, driven by over-the-counter products like Maxigesic, Eyecare range, Ferro range and other pain product range along with a further expansion of the hospital portfolio of products like antibiotic Piptaz. Additionally, the gross profit margin continued to grow on the back of increased over-the-counter product sales.

Moving on to the New Zealand region, the revenue from the sale of goods stood at NZ$26.8 million in FY19. The growth drivers for NZ sales include the sale of OTC products, Vitamin C, Liposachets and roll-out of new products, along with the growth of prescription products from the launch of the new products.

The net cash used in operating activities stood at NZ$1.067 million in FY2019 when compared to NZ$9.167 million in FY2018. AFP reported NZ$6.9 million of cash available at hand as on 31st March 2019. The company’s operating revenue came in at NZ$85.1 million for FY19, along with operating profit of NZ$6.1 million. The FY19 results mark the return of the group to the operating profit, which is a result of a continued strategy of expanding its presence in the markets of Australia, New Zealand and Southeast Asia.

The company presented its medium-term plans, which includes driving international sales by launching new extension line for Maxigesic IV and extending international licensing via achieving licensing agreement in USA, Canada and LATAM. In addition, the company is planning to explore its previously unplanned countries such as China. Further, the company plans to initiate an increase in upfront payment through Maxigesic IV licensing agreement along with an increase in local ANZ and SE sales via initiating Maxigesic sale in AU and NZ. AFP expects ongoing growth in sales and profit in the Australian region for FY20.

On the price-performance front, On May 23, 2019, the stock of AFT Pharmaceuticals Limited is trading at $2.450 (AEST: 1:04 PM), with a market capitalisation of $238.4 million. The stock has provided a YTD return of 29% and exhibited a return of 24% over the past six months. Its 52-week high price stands at $2.460, and 52-week low stands at $1.900.


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