Drugs and medicinal products producer based in Auckland New Zealand AFT Pharmaceuticals [ASX:AFP] caught attention with its latest media release detailing financial results for the 12 months leading to the end of March 2023.
The drug group showed that it earned around half that of its full-year profit from a year ago, with net profit of $10.7 million off the $19.8 million earned last year having been impacted the pressure of increasing costs and higher tax — yet it still decided to give out its maiden dividend.
AFP went up more than 6% in afternoon trade on Monday, shares trading for around $3.40 at the time of writing.
The stock has moved up nearly 7% in the past month and relatively flat year so far, however, in the longer term, AFP has racked up a 13% gain in the last 12 months and is up 11.5% on the market:
Source: TradingView
AFT Pharmaceuticals declares first dividend despite lower profit
Auckland-based pharmaceutical group AFT today revealed it would be giving out its first dividend even after delivering around half last year’s full-year profit for the 12 months to March.
The group reported that it had achieved a net profit of $10.7 million compared with the $19.8 million it had earned in profits the year before as high costs and taxes took their toll.
Operating profit was $19.7 million versus the $20.4 million last year.
Yet revenue reached a new record with $156.6 million (2022: $130.3 million), clearly the catalyst for the board’s decision to give shareholders their first dividend.
AFT decided it would distributing a maiden dividend of 1.1 cents per share for the full 2023 financial year.
AFT said that it sees the rolling 12-month stretch revenue target of $200 million is in sight thanks to strong ongoing demand, product launches, and its Maxigesic painkiller commercialisation program.
AFP noted continued growth in Australasian demand for its portfolio of medicines, growing demand for its unique intellectual property in international markets, and easing COVID pressures in most markets.
New Zealand and Australian market sales accounted for close to 90% of all sales, which continues to underpin the business.
The group expects its FY24 guidance for operating profit to reach $22 million — $24 million, not including $6 million in licensing income expected in the first half of 2024 on the launch of Maxigesic IV in the US.
AFT hopes to make some progress with the Food and Drug Association in North America and awaits approval of its products with word expected later this year. In the meantime, it’s chasing further sales growth in Europe and Asia.
Chair of AFT Pharmaceuticals David Flacks commented:
‘We are delighted with the progress the company has made over the last year as we have again extended what has been an uninterrupted two-decade record of revenue growth.
‘As forecast, we have seen a stronger second half supported by product launches and continuing strong demand for our broad portfolio of medicines in the Australasian markets and our growing portfolio in other markets around the world.
‘Operating profit from product sales and royalties has grown very strongly even though we have this year significantly invested in a new sales capability in Australia, made new investments in international markets and importantly extended our product development pipeline.
‘Reflecting our confidence in the future and the growth prospects of the business, AFT directors have elected to declare a maiden dividend of 1.1 cent per share.’
Source: AFT
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