AFT Pharmaceuticals - Recovery driven by strong H222

AFT Pharmaceuticals (AFT) reported FY22 revenue of NZ$130.3m, up from NZ$113.1m in FY21, driven by improved performance in H222 (versus H122) amid the easing of COVID-19 restrictions. Revenue growth was driven by new product launches and a steady contribution from licensing deals, particularly the international rollout of Maxigesic oral and intravenous formulations. Reported operating profit of NZ$20.4m was slightly higher than our estimate of NZ$19.4m. AFT announced plans to initiate a dividend (roughly 20–30% of normalised net income) in FY23. We will be updating our estimates to factor in these developments.