Over the counter sales and revenue grew in New Zealand and Australia, which accounted for close to 90 percent of all sales, but profit was hit by a rise in operating expenses. Photo: 123rf
Drug maker AFT Pharmaceuticals has reported a near halving of its full year profit as its costs increased and it returned to paying tax, but still declared its first dividend.
Key numbers for the year ended March compared with a year ago:
- Net profit $10.7m vs $19.8m
- Revenue $156.6m vs $130.3m
- Operating profit $19.7m vs $20.4m
- Maiden dividend 1.1 cents a share
The Auckland-based maker of the Maxigesic painkiller reported solid growth as over the counter sales and revenue growth in its home New Zealand and Australian markets, which accounted for close to 90 percent of all sales, continued to underpin the business.
However, the company was making inroads into North America, with the Food and Drug Administration just approving one of its products and a further hearing for another due later in the year, while it was now targeting Europe and Asia for further sales growth.
It said there was growing demand for its intellectual property in international markets, the easing of Covid-19 pressures in most markets and strong progress on its programme of new product launches.
The bottom line profit was hit by a rise in operating expenses as it pushed product and market development, as well as a return to paying tax, $5.1m against a tax credit of $1.2m the previous year.
Managing Director Hartley Atkinson said its strategy remained to identify, develop, and market licensed and proprietary medicines in key markets, which to date have been centred on Maxigesic in various forms.
"This investment in distribution and product promotion alongside our investment in research and development has diluted our earnings for the 2023 financial year. However, we remain confident the investment will be a key driver of growth and shareholder value."
He said the company was currently developing products to manage strawberry birthmarks and drug resistant eye infections.
AFT's maiden dividend of 1.1 cents per share was 11 percent of its net profit, less than its stated policy of 20 to 30 percent of normalised net profit, as it decided to preserve cash for future growth and reduce debt levels.
It forecast an operating profit of $22m to $24m for the new financial year.