AFT sees strong FY 26 as revenue reaches new record
AFT Pharmaceuticals Limited, Level 1, 129 Hurstmere Road, Takapuna, Auckland 0622, New Zealand Incorporated in
New Zealand ARBN: ARBN 609 017 969 investor.relations@aftpharm.com
22 MAY 2025
FINANCIAL RESULTS FOR THE YEAR TO 31 MARCH 2025
AFT sees strong FY 26 as revenue reaches new record
AFT Pharmaceuticals (NZX:AFT, ASX:AFP) today reports it has again achieved another
year of record revenue with annual sales exceeding $200 million
1
and it is now firmly
focused on its revenue target of $300 million by the end of the 2027 financial year.
The diversified pharmaceuticals company reports continued strong growth in its core
Australasian business, while the expected robust recovery in its Asia and International
businesses during the second half year, have lifted revenue for the year to the end
of March 2025 to another record of $208.0 million, a 6% increase over FY 24.
Operating profits have meanwhile reached $17.6 million in line with guidance given
at the half year, lifted by the growth in revenue and expansion of product margins.
These gains were diluted by the significant one-off events flagged in 1H 25, including
destocking by several of our largest customers and a since resolved doctors’ strike in
South Korea that impacted both sales and earnings.
A video of Dr Hartley Atkinson discussing a summary of the result can be viewed at
the following link: https://bit.ly/AFTPharmaceuticals_FY25.
HIGHLIGHTS
• Full year operating revenue up 6% to $208.0 million, lifted by 11% growth in
product sales and royalties across all territories and $0.7 million of licensing
income
• Strong Australian sales growth of 17%, offset by the one-off factors of
destocking and interruptions to demand for Maxigesic IV in 1H 25
• EBITDA
2
of $20.9 million down 20% and operating profit of $17.6 million down
27%, in line with guidance given at the half year
• Operating profit in Australia rose 65% following growth investments made last
year delivering the expected benefits
• Net profit after tax decreases 23% to $12.0 million
• Balance sheet strong with net debt of $14.5 million down from $16.2 million at
the end of FY 24 and $29.9 million at the end of FY 23 despite significant
investments for growth
• Consistent with confidence in outlook an increased dividend declared of 1.8
cents per share, (1.6 cents declared FY 24)
• $200 million revenue exceeded and now focused on the $300 million target
1
All comparisons are to FY 24 and all figures are in New Zealand dollars unless otherwise stated.
2
EBITDA is a non-GAAP measure of financial performance. It is defined and reconciled to AFT’s standard
profit measure under New Zealand GAAP of Net Profit After Tax in the 2025 Annual Report released to
the NZX and ASX today.
2
• Ongoing significant investment with FY 26 guidance for increased operating
profit of $20 million to $24 million.
AFT Pharmaceuticals Chair David Flacks said: “AFT has delivered another strong result,
especially when considered against the one-off disruptions in the first half of the year.
“We have grown in our core Australasian and Asian markets. We have meanwhile
continued to invest for the long-term with the addition of new medicines to our
product development portfolio and an expanded offer in the markets in which we
operate. We are looking to the new financial year with confidence.”
Co-Founder and Managing Director Dr Hartley Atkinson said: “Aside from delivering
continued strong growth in our core Australasian businesses we have significantly
advanced our strategy to extend our reach across multiple geographies and added
to our research and development (R&D) pipeline. These efforts have come at the cost
of short-term earnings growth, but we are convinced they will deliver growth in long
term shareholder value.
“Highlights for the year include launching Maxigesic tablets in the US, following on
from the intravenous form of the medicine, Maxigesic IV; the launch of our proprietary
antiseptic cream in mainland China, and the completion of multiple licensing
agreements around the world including Maxigesic IV in China, and Brazil. In a credit
to our out-licencing activities we were identified as the only company in the world last
year to secure two licensing agreements into China, the world’s second largest
pharma market
3
.
“We are also pleased with the progress we are making with AFT’s business operations
established in Singapore, Hong Kong, South Africa, the US, Canada, Europe, and the
UK. We have a roadmap for growth in each of these markets founded on a portfolio
of our own products and medicines we are in -licensing.
“Our own products for these markets now include a significant development
programme of injectable drugs with a potential market value of over US$400 million.
Our approach to these new markets avoids an over-exposure to the US and at present
we do not see a significant impact of new US tariffs to our business.
“Finally, we have extended our research and development programme to 13
separate projects following the addition of two projects over the last year — a novel
topical keloid scar treatment and a new treatment for iron infusions. Together these
projects offer entry into markets with a considerable value, for example the iron
injection market is forecast to reach US$7.4 Billion by 2033
4
.
“We are seeing interest growing in our R&D portfolio with some twenty agreements
under discussion, including signed term sheets. I am confident, based on these
foundations AFT has reached an inflexion point and can further extend its decades
long record for growth and value creation.”
3
https://mp.weixin.qq.com/s/EIG5Fjx2xAllqO_LbY88Xw
4
https://www.biospace.com/intravenous-iron-drugs-market-size-to-worth-around-us-7-41-billion-by-2033
3
FINANCIAL RESULTS
Revenue from the sale of existing products, new products and product royalties grew
by 11% to $207.4 million from $186.9 million in FY 24. The 17% growth in the Australian
business and the 10% growth in the New Zealand business made the largest
contribution to the increase in group revenue.
The Asia and International businesses recovered in the second half after the one-off
events flagged in the first half of the year — the destocking by several of our largest
customers and the disruptions to demand for Maxigesic IV.
Asia revenue recovered from the first half decrease and rose by 4% to $11.1 million
from $10.7 million in FY 24. The second half sales in Asia were 50% greater than 1H 25
sales and 26% greater than 2H 24, all consistent with the significant expected
recovery.
International sales in 2H 25 were 83% greater than 1H 25 but finished 20% below last
year’s. Sales in 2H 25 were 19% greater than 2H 24 , again a rise consistent with the
expected recovery.
Total revenue, which includes licensing income of$0.7 million rose 6% to $208.0 million
from $195.4 million in FY 24. Licensing income was less than FY 24’s $8.5 million, a figure
buoyed by a one-off $6 million payment related to the launch of Maxigesic IV in the
US. However, with a significant number of licensing agreements under discussion,
including signed term sheets, we anticipate higher licensing milestone payments in
FY 26.
Gross Margin on product sales and royalties of 44% improved by 1 percentage point
(FY 24 43%), driven by the revenue growth in the higher margin products. The overall
gross margin which includes license income reduced to 44% (FY 24 45%).
Operating expenses increased by $10 million over FY 24 with the increase reflecting
start-up funding for the new business hubs in North America, the United Kingdom,
and South Africa; marketing for new products and markets; and an increase in
research and development expenditure.
The result was an operating profit of $17.6 million, down from an operating profit of
$24.2 million in FY 24, the latter benefitting from the higher licensing fees. Excluding
license fees, operating profits increased 7% to $17.0 million from $15.7 million in FY 24
despite the extra expenditure to drive future business growth. EBITDA of $20.9 million
was down from $26.2 million in FY 24, while net profit after tax fell from $15.6 million to
$12.0 million.
Further detail on the performance of AFT’s individual markets is contained in our
annual report also released to the NZX and ASX today and available at the following
link: https://investors.aftpharm.com/Investors/
RESEARCH AND DEVELOPMENT
FY 25 R&D expenditure (expensed and capitalised) rose to $15.0 million from $12.4
million in FY 24, all of which has been funded through earnings with the increase
reflecting the addition of new projects to the portfolio.
4
Towards the end of FY 25 we strengthened our research and development
partnership with Belgium’s Hyloris Pharmaceuticals with an agreement to in-license
and complete development of a late-stage novel innovative injectable iron
deficiency therapy.
AFT and Hyloris are now collaborating on three different projects, while our R&D
program now extends to 13 separate projects, all of which offer potential significant
growth opportunities.
Five of these projects (multiple Maxigesic dose forms, Capsaicin creams, Crystaderm,
Kiwisoothe and Micolette) are in or entering the commercialisation phase while the
others are longer term but offer significant upside, provided the R&D programs are
successful. The five projects in the commercialisation phase are driving the significant
number of licensing negotiations that AFT presently has underway.
BALANCE SHEET AND DIVIDEND
AFT remains well funded. Net debt at the end of March 2025 was $14.5 million down
from $18.9 million at the end of 1H 24 and $16.2 million at the end of FY 24 . Net debt
is within the company’s target range of 1X EBITDA.
Directors have resolved to declare a dividend of 1.8 cents per share, up from 1.6
cents a share in FY 24. The dividend recognises the strong outlook for the company
and that earnings in FY 25 were depressed by the one-off events in the first half of the
period.
OUTLOOK
AFT is expecting to extend its growth record in FY 26 as it drives towards its aspirational
target of $300 million revenue by the end of FY 27.
“AFT is well positioned to achieve this target. While the global trading environment is
looking more difficult, we are confident that we can continue to overcome these
challenges by focusing on what we do best — identifying unmet clinical needs and
then in-licensing or developing medicines and then commercialising them to
improve health globally. Importantly, we are protecting ourselves from one-off
events in single markets with the increasing geographic and product diversification
of our operations.
“We have a strong programme of new products in our core Australasian markets and
see continued opportunities for growth across the existing portfolio. This growth will
also be supported by product launches especially in international markets, building
momentum in our new business hubs which will move into profitability and the
commercialisation of products now in development,” Dr Atkinson said.
“We are looking forward with confidence and expect operating profit for the FY 26
year to range from $20 million to $24 million.”
Released for and on behalf of AFT Pharmaceuticals Limited by Malcolm Tubby, Chief
Financial Officer.
For more information:
Investors Media
5
Dr Hartley Atkinson Richard Inder
Managing Director The Project
AFT Pharmaceuticals Tel: +64 21 645 643
Tel: +64 9488 0232
About AFT Pharmaceuticals
AFT is a growing New Zealand based multinational pharmaceutical company that
develops, markets, and distributes a broad portfolio of pharmaceutical products
across a wide range of therapeutic categories which are distributed across all major
pharmaceutical distribution channels: over the counter (OTC), prescription and
hospital. Our product portfolio comprises both proprietary and in-licensed products,
and includes patented, branded, and generic drugs
5
. Our business model is to
develop and in-license products for in our markets of Australia, New Zealand,
Singapore, Malaysia, Hong Kong, USA, Canada, EU ex Ireland and UK, and to out-
license our products to local licensees and distributors to over 125 countries around
the world. For more information about the company, visit our website
www.aftpharm.com.
---
2025
ANNUAL
REPORT
“AFT is a growing
multinational
pharmaceutical company
that develops, markets,
and distributes a broad
portfolio of pharmaceutical
products across a wide
range of therapeutic
categories.”
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 1
Contents
FY25 Financial and Strategic Highlights 04
Chair and Managing Director’s Report 07
Business Focus:
• Regional Performance 11
• Research and Development 15
Sustainability 16
Reconciliation of EBITDA to GAAP 35
Governance: 37
• An Experienced and Skilled Board 38
• Our Senior Management Team 40
• Corporate Governance Statement 42
Remuneration 58
Consolidated Financial Statements 63
Statutory Disclosures 97
Appendices:
• Appendix 1 – Climate Statement 102
• Appendix 2 – Material Sustainability Matters Definitions 123
Directory and Financial Calendar 125
This report provides a summary review of AFT’s
operational and financial performance for the year
to 31 March 2025. It should be read in conjunction
with the company's financial statements on pages
63 to 96 of this report. The information provided
in this report has been compiled in accordance
with relevant law, rules, and corporate governance
recommendations for investor reporting.
Financial information has been prepared in
accordance with appropriate accounting standards
and has been audited by Deloitte Limited.
Throughout this report we have focused on what
we believe matters most to our stakeholders and
our business. We have endeavoured to ensure all
information is accurate through internal verification
and other approval processes.
David Flacks Dr Hartley Atkinson
Chair Managing Director
WORKING TO IMPROVE YOUR HEALTH | 2
Investing for the future
– we have extended our
reach around the world,
expanded our product range,
and added new medicines
to a research and development
portfolio that promises better
health outcomes. We have delivered,
and continue to focus on, long-term
sustainable growth.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 3
Record revenue with sights
set on $300m milestone
.
$
208.0m
Total revenue, rose 6% from $195.4 million
in FY 24, with strong growth in all territories
offset by lower licensing income
$
17.6m
Operating profit down from an operating
profit of $24.2 million in FY 24 as AFT invests
for growth and sees lower licensing income
$
14.5m
Net debt
1
at 31 March 2025
within the target of 1X EBITDA
$
20.9m
EBITDA
2
of down
from $26.2 million
1.8 cents
Dividend per share, up 0.2 cents
on 1.6 cents in FY24
$
15.0m
Research and development
expenditure up from $12.4 million
OUR STRATEGIC ACHIEVEMENTS
Maxigesic
tablets
launched in the US,
following on from the
launch of Maxigesic IV.
Crystaderm
launched in China and
Maxigesic IV
licensed to Xizang Weixinkang
Pharmaceutical Co.
New
Business Hubs
in Singapore, Hong Kong,
South Africa, the US, Canada,
Europe, and the UK establish
a clear roadmap for growth.
Research and
Development
programme extended to
13 separate projects following
the addition of two projects
over the last year
1 Net debt is net interest bearing liabilities less cash and cash equivalents.
2 EBITDA is a non-GAAP measure of financial performance. It is defined and reconciled to AFT’s standard profit measure
under New Zealand GAAP of Net Profit After Tax on page 35 of this report.
WORKING TO IMPROVE YOUR HEALTH | 4
FINANCIAL AND STRATEGIC HIGHLIGHTS
Extending Our Record of Growth in Revenue and Earnings
AUSTRALIA
Revenue:
$127.1 million
up 17%
Operating profit
25.5 million
up 65%
Key growth drivers:
Eyecare, pain relief, iron
supplements, and prescription.
NEW ZEALAND
Revenue:
$53.8 million
up 10%
Operating profit
$8.8 million
up 20.5%.
Key growth drivers:
Eyecare, pain relief, dermatology
and prescription.
ASIA
Revenue:
$11.1 million
up 4%
Operating profit
$1.8 million down
from $2.5 million.
Key drivers:
Supplements particularly
via the online cross border
e-commerce channel.
INTERNATIONAL
Revenue:
$16.0 million
down 42%
Operating loss
$(7.3) million down
from $8.5 million
operating profit.
Key drivers:
Lower licensing income
and growth investments.
A Growing Contribution From Our Global Operations
New Zealand 25.9%
Australia 61.1%
Asia 5.3%
International 7.7%
New Zealand 24.9%
Australia 55.4%
Asia 5.5%
International 14.2%
FY25 RevenueFY24 Revenue
$250
$200
$180
$160
$140
$120
$100
$80
$60
$40
$20
$-
NZ$ MILLION
AFT Pharmaceuticals Revenue
2016 2017 2018 2019 2020 2021 2022202320242025
$69
$64.0
$85
$69.0
$80.0
$85.0
$100.6
$113.1
$130.3
$195.4
$111.8
$121.3
$83.6
$86.7
$208.0
$156.6
FULL FINANCIAL YEARFIRST HALF FINANCIAL YEARSECOND HALF FINANCIAL YEAR
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 5
FINANCIAL AND STRATEGIC HIGHLIGHTS
We are seeing
interest growing
in our R&D portfolio
with some twenty
agreements under
discussion.
WORKING TO IMPROVE YOUR HEALTH | 6
Investing for the future;
growing strongly
AFT Operating Profit*
* FY20 normalised to exclude non-cash valuation gain
$25
$20
$15
$10
$5
$0
-$5
-$10
-$15
$20
NZ$ MILLION
20152016 2017 2018 2019 2020 2021 2022202320242025
OPERATING PROFIT (EX LICENSE INCOME) LICENSE INCOME
$6.1
-$6.3
$20.4
-$10.1
$11.4
-$10.8
$19.7
$10.7
-$16.4
$24.2
$17.6
DEAR SHAREHOLDERS,
AFT has delivered another strong result, delivering
another year of record revenue with annual sales
exceeding $200 million and we are now firmly
focused on achieving our revenue target of
$300 million by the end of the 2027 financial year.
We have delivered continued strong growth in
our core Australasian business, while our Asia and
International businesses have recovered strongly
from the one-off events that weighed on the first
half of the year - the destocking by several of our
largest customers and a since resolved doctors’
strike in South Korea.
We have continued to invest for the long-term
significantly advancing our strategy to extend
our reach across multiple geographies and added
to our research and development (R&D) pipeline.
These efforts have come at the cost of short-term
earnings growth, but we are convinced they will
deliver growth in long term shareholder value.
Highlights for the year include launching Maxigesic
tablets in the US, following on from the intravenous
form of the medicine, Maxigesic IV; the launch
of our proprietary antiseptic cream in mainland
China, and the completion of multiple licensing
agreements around the world including Maxigesic
IV in China, and Brazil.
We are also pleased with the progress we are
making with AFT’s business operations we have
established in Singapore, Hong Kong, South Africa,
the US, Canada, Europe, and the UK. We have
a roadmap for growth in each of these markets
founded on a portfolio of our own products and
medicines we are in-licensing.
Our own products for these markets now
include a significant development programme
of injectable drugs with a potential market value
of over US$400 million. Our approach to these
new markets avoids an over-exposure to the US
and at present we do not see a significant impact
of new US tariffs to our business.
Our research and development programme
now extends to 13 separate projects following
the addition of two projects over the last year
— a novel topical keloid scar treatment and
a new treatment for iron infusions. Together
these projects offer entry into markets with a
considerable value, for example the iron injection
market is forecast to reach US$7.4 Billion by 2033.
We are seeing interest growing in our R&D portfolio
with some twenty agreements under discussion,
including signed term sheets. We are confident,
based on these foundations AFT has reached an
inflexion point and can further extend its decades
long record for growth and value creation.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 7
CHAIR AND MANAGING DIRECTOR’S REPORT
Financial Results
Revenue from the sale of existing products, new
products and product royalties grew by 11% to
$207.4 million from $186.9 million in FY 24. The
17% growth in the Australian business and the
10% growth in the New Zealand business made
the largest contribution to the increase in group
revenue.
The Asia and International businesses recovered
in the second half after the one-off events flagged
in the first half of the year — the destocking
by several of our largest customers and the
disruptions to demand for Maxigesic IV.
Asia revenue recovered from the first half decrease
and rose by 4% to $11.1 million from $10.7 million
in FY 24. The second half sales in Asia were
50% greater than 1H 25 sales and 26% greater
than 2H 24, all consistent with the significant
expected recovery.
International sales in 2H 25 were 83% greater than
1H 25 but finished 20% below last year’s. Sales in
2H 25 were 19% greater than 2H 24, again a rise
consistent with the expected recovery.
“... with a significant number of licensing
agreements under discussion, including
signed term sheets, we anticipate higher
licensing milestone payments in FY 26.”
Total revenue, which includes licensing income of
$0.7 million rose 6% to $208.0 million from $195.4
million in FY 24. Licensing income was less than
FY 24’s $8.5 million, a figure buoyed by a one-
off $6 million payment related to the launch of
Maxigesic IV in the US. However, with a significant
number of licensing agreements under discussion,
including signed term sheets, we anticipate higher
licensing milestone payments in FY 26.
Gross Margin on product sales and royalties
of 44% improved by 1 percentage point
(FY 24, 43%), driven by the revenue growth in the
higher margin OTC products. The overall gross
margin which includes license income reduced
to 44% (FY 24, 45%).
Operating expenses increased by $10.0 million over
FY 24 with the increase reflecting start-up funding
for the new business hubs in North America, the
United Kingdom, and South Africa; marketing for
new products and markets; and an increase in
research and development expenditure
to $15.0 million from $12.4 million in FY 24.
The result was an operating profit of $17.6 million,
down from an operating profit of $24.2 million
in FY 24, the latter benefiting from the higher
licensing fees. Excluding, license fees operating
profits increased 7% to $17.0 million from $15.7
million in FY 24 despite the extra expenditure to
drive future business growth. EBITDA of $20.9
million was down from $26.2 million in FY 24,
while net profit after tax fell from $15.6 million
to $12.0 million.
Governance
We have continued to advance AFT’s governance
and sustainability framework. This year we
have further evolved how we report against the
Aotearoa New Zealand Climate Standards. Notably,
we have advanced our emissions reduction plan to
deliver on targets consistent with limiting warming
to 1.5 degrees above pre-industrial levels in line
with New Zealand’s commitment to the Paris
Agreement to the United Nations and achieve net
zero emissions by 2050.
This – our second climate risk assessment – also
affirmed the finding of the first assessment that
climate change represents a relatively low risk to
the sustainability of our operations. An overview
of our climate risk assessment can be found on
page 32 to 33 of this report, and our full climate
statement in compliance with the Aotearoa
New Zealand Climate Standards can be found in
Appendix 1 starting on page 102 of this report.
WORKING TO IMPROVE YOUR HEALTH | 8
CHAIR AND MANAGING DIRECTOR’S REPORT
In November Allison Yorston joined the board
as an Independent Non-Executive Director. The
appointment fills the vacancy left by Anita Baldauf
who retired from the Board at the shareholders
meeting in August. Allison is currently Director
of Marketing at Griffins Snacks and brings to AFT
extensive marketing experience that will assist
the company as we grow and consolidate our
position in Australasia and build our presence
internationally. We also thank Anita for her
contributions to the company.
Finally, it is with deep regret that we note the
passing of Dr Doug Wilson in March of this year
(see page 10). Doug joined the board of the
company in 2012 before AFT’s initial public offer
until his retirement in August 2022. Doug played
a key role in shaping AFT’s R&D knowledge and
strategy during a period of significant growth and
international expansion and is deeply missed.
Balance Sheet And Dividend
AFT remains well funded. Net debt at the end
of March 2025 was $14.5 million down from
$18.9 million at the end of 1H 24 and $16.2 million at
the end of FY 24. Net debt is within the company’s
target range of 1X EBITDA.
Directors have resolved to declare a dividend of
1.8 cents per share, up from 1.6 cents a share in FY
24. The dividend recognises the strong outlook
for the company and that earnings in FY 25 were
depressed by the one-off events in the first half of
the period.
Outlook
AFT is expecting to extend its growth record in
FY 26 as it drives towards its aspirational target
of $300 million revenue by the end of FY 27.
AFT is well positioned to achieve this target. While
the global trading environment is looking more
difficult, we are confident that we can continue to
overcome these challenges by focusing on what
we do best — identifying unmet clinical needs and
then in-licensing or developing medicines and then
commercialising them to improve health globally.
Importantly, we are protecting ourselves from
one-off events in single markets with the increasing
geographic and product diversification of our
operations.
We have a strong programme of new products in
our core Australasian markets and see continued
opportunities for growth across the existing
portfolio. This growth will also be supported
by product launches especially in international
markets, building momentum in our new business
hubs which will move into profitability and the
commercialisation of products now in development.
We are looking forward with confidence and expect
operating profit for the FY 26 year to range from
$20 million to $24 million.
David Flacks Dr Hartley Atkinson
Chair Managing Director
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 9
CHAIR AND MANAGING DIRECTOR’S REPORT
TRIBUTE: FORMER AFT DIRECTOR DR DOUG WILSON MNZM
Strategic Insight That Left a Lasting Legacy
AFT Pharmaceuticals acknowledges with regret the
passing of Dr Doug Wilson, a New Zealand physician,
academic author, and leading expert in the field
of ageing. Doug, who served as an Independent
Non-Executive Director on the AFT Board between
2012 and 2022 passed away in March 2025.
Doug joined the AFT Board ahead of the
company's initial public offering in 2015 and played
a key role in shaping AFT’s R&D expertise and
strategy during a period of significant growth
and international expansion.
Doug brought to AFT decades of international
pharmaceutical experience, including senior roles
at Boehringer Ingelheim, where he served as
Head of Medical Research and Regulatory Affairs,
later assuming responsibility for global drug
development. He chaired Boehringer Ingelheim’s
International Medical Committee, overseeing
the medical aspects of all drugs in development
globally, and led their International Labelling
Committee for marketed drugs.
His strategic insight, and deep understanding of
the international pharmaceutical industry and
pharmaceutical development which he willingly
shared with all the relevant AFT staff was
instrumental in helping guide the company
through its early public years and beyond.
In 2021 he was named the Senior New Zealander of
the year. And then in recognition of his outstanding
service to health and seniors, Doug was awarded
the New Zealand Order of Merit in the 2022
New Year’s Honours List.
Beyond his contributions to AFT, Doug was an
internationally respected specialist in the field
of ageing. He consulted widely on new drug
development, advised pharmaceutical companies
globally, and was a passionate advocate for healthy
ageing. He authored several children’s books, as
well as two acclaimed non-fiction works on ageing
– Ageing for Beginners and Ageing Well (2021) –
where he championed positive intergenerational
relationships and proactive approaches to health
and financial security in later life.
Doug also produced his own podcast series and
was a regular contributor to Radio New Zealand’s
Saturday Morning programme. He was an active
member of the Age Friendly Steering Group with
the Taupō District Council, part of the World Health
Organisation's programme on age-friendly cities.
AFT wishes to express its sincere gratitude for
the tremendous contribution Doug made to the
company’s development, and to acknowledge the
enduring legacy he leaves both within AFT and in
the broader community he served so passionately.
He will be deeply missed.
Photo Credit: NZME
WORKING TO IMPROVE YOUR HEALTH | 10
Launched
Launch Pending
AFT New Zealand
Head office
AFT Australia
AFT Singapore/
Malaysia
AFT South Africa
AFT USA
AFT UKAFT Europe
AFT Canada
AFT Hong Kong
AFT’s Global Reach
A decades long record of growth and global expansion
Revenue in Australia grew 17% to $127.1 million from
$108.2 million in FY 24. Market growth was led
by eyecare, pain relief, iron supplements, and the
broad portfolio of injectables and prescription.
Revenue:
$127.1m
up 17%
Operating profit
$25.5m
from $15.5 million up 65%
NZ$ MILLION
Australian Revenue
$150
$120
$90
$60
$30
$-
202320242025
$94.1
$108.2
$127.1
Australia
NEW PRODUCT LAUNCHES SUPPORT GROWTH
Growth is primarily driven by existing products
with new product launches complementing, but
not driving, growth over the last year. The planned
pipeline of products will contribute as they
become established in the market. AFT continues
to add products to this pipeline through our
active business development activities around the
globe, in addition to our own R&D pipeline which
we foresee will further strengthen and grow our
Australian business.
Australian operating profit was up strongly to
$25.5 million from $15.5 million in FY 24. This
improvement in profit followed on from the
significant investment last year in new product
promotion and the doctor field force. It is not
foreseen that significant additional headcount
will be required in Australia which will assist in
improving operating leverage in our largest market.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 11
REGIONAL PERFORMANCE
Asian revenue was up to $11.1 million from $10.7
million in FY 24. We have benefited from good
growth in the iron and vitamin supplements on
the online cross border e-commerce into China,
and the launch of Crystaderm into mainland China
late in the financial year. These gains were diluted
in 1H 25 by a doctors’ strike in South Korea, which
weighed on demand for Maxigesic IV. Operating
profit is down to $1.8 million from $2.5 million in
the prior year, reflecting the increased spending on
marketing and business development initiatives.
Revenue:
$11.1m
up 4%
Operating profit
$1.8m
down from $2.5 million
ASIA
CRYSTADERM MAKING A MARK IN CHINA
NZ$ MILLION
Asia Revenue
$15
$12
$9
$6
$3
$-
202320242025
$6.8
$10.7
$11.1
Making A Mark In China
New research shows that AFT is achieving success,
amongst global pharma, in China that belies its
size. In 2024, according to a report compiled
by MybioBD Management Consulting Co., AFT
medicines – the antiseptic cream Crystaderm
and Maxigesic IV – accounted for two of the just
19 developed medicines in-licensed into China
in 2024. AFT was also the only company that
achieved more than one deal.
One of our local distributors, Hainan Haiyao,
successfully launched Crystaderm in China in March
this year, after signing the distribution agreement
in July 2024. Additionally, we have completed a
further four distribution agreements with Hainan
for Vitamin C LipoSachets, Vitamin D LipoSachets,
Ferro LipoSachets and Kiwisoothe tablets.
These products are launching initially in the Lecheng
Free Trade Zone but launches in Mainland China are
planned over the next 12 months to make a total of
five launches into China within a year. Meanwhile,
Xizang Weixinkang Pharmaceutical Co Ltd (WXK),
an established hospital injectables focused company
in China and listed on the Shanghai Stock Exchange
main board, was licensed to distribute Maxigesic IV
in this market in September 2024. WXK and AFT
are presently pursuing regulatory approval for the
medicine in China.
WORKING TO IMPROVE YOUR HEALTH | 12
REGIONAL PERFORMANCE
Revenue in New Zealand grew 10% to $53.8 million
from $48.7 million in FY 24. Market growth was
led by eyecare, pain relief, dermatology, and the
broad portfolio of injectables and prescription.
New Zealand operating profit improved to
$8.8 million from $7.3 million in the same period
of the prior year, driven by the revenue growth.
Revenue:
$53.8m
up 10%
Operating profit
$8.8m
up20.5%
New Zealand
SEEING BROAD-BASED GROWTH
New Zealand Revenue
$60
$45
$30
$15
$-
202320242025
NZ$ MILLION
$44.2
$48.7
$53.8
Revenue from product sales and royalties in the
international business was $15.4 million compared
to $19.3 million in FY 24. This result was driven
by a few large customers, reducing inventory in
1H 25 in response to an improving supply chain
outlook. Sales in 2H 25 were 86% greater than
1H 25, consistent with the expected recovery,
as the impact of destocking receded.
International
LAYING THE FOUNDATIONS IN NEW MARKETS
Revenue:
$16.0m
down 42%
Operating profit/(loss)
($7.3m)
down from $8.5 million
NZ$ MILLION
International Revenue
$30
$20
$10
$-
202320242025
$11.7
$0.9
$16.0
$0.7
$6.4
$19.3
$15.3
$8.5
$27.8
PRODUCT SALES AND ROYALTIES LICENSING
Licensing income of $0.7m was $7.8 million down
on the $8.5 million of the prior year which included
the $6 million milestone payment following the
launch of Maxigesic IV in the US. Licensing income
has an element of lumpiness in terms of timing.
We expect ongoing licensing income will contribute
to earnings and contribute to offsetting R&D
expenditure albeit lagging in terms of timing.
Including licensing income, we recorded an
operating loss of $(7.3) million compared to an
$8.5 million profit in FY 24. The fall reflected lower
license payments as well as the lower product sales
gross profit and the increased costs associated
with the establishment and operation (selling and
distribution costs) of our new business hubs in the
UK, North America, and South Africa together with
an increase in expensed R&D investment.
New operations will not be immediately profitable
but as the businesses develop, we can see the
potential for significant contributions especially
given the significant market sizes in the UK
and North America (primarily Canada for our
operations). There is a significant pipeline in
development, and we are pleased to be filing
our first three developments within this current
financial year starting from next month.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 13
REGIONAL PERFORMANCE
Building Revenue Momentum
In New Markets.
Maxigesic IV is launched in North America
1
and we
have also launched the rapid dissolving form of the
medication alongside several of our OTC medicines.
In the UK we are making steady progress with
Maxigesic tablets through pharmacies and
Amazon. During the period we were approved as a
supplier to the UK’s National Health Service (NHS)
and our first round of contract bids for hospital
injectable medicines were 100% successful with
first sales commencing February 2025.
We see this as an encouraging sign given the
significant size of the UK hospital injectable market.
Sales of Maxigesic IV, like the US, will require
inclusion of the medicine in hospital formularies,
these have started, and we are confident of closing
in on larger hospital groups in the coming months.
In Europe we continue to make significant progress
in commercialising the products that we acquired
last year with a significant number of licensing
agreements signed for Austria, France, Germany,
Ireland, Italy, and the Nordics. Sales of these new
products have commenced and will continue to
roll out across this financial year. We believe that
we will recoup our initial acquisition investment by
around the end of this financial year; an attractive
investment outcome.
Our 70% owned South African operation, AFT
Pharmaceuticals South Africa Ltd is still in the
early stages of development. We have acquired
an existing South African Health Products
Regulatory Authority license. This acquisition has
fast tracked the AFT subsidiary’s approval to sell
pharmaceuticals by two years, and we plan for
sales to the private hospital market to start during
either the latter half
1
In the US and several other markets Maxigesic is sold as
Combogesic, however for simplicity we refer to the medicine
in this release with the name familiar to Australasian audiences.
of FY 26 or FY 27 depending upon the speed
of the regulatory authorities in approving transfer
of existing product licenses.
AFT also has access to a significant pipeline of
products in approval through its other shareholder,
Edge Pharmaceuticals. The South African private
hospital market is similar in size to the whole
Australian hospital market so again it offers
an attractive expansion opportunity.
Strong Licensing Interest
We are seeing strong global interest for our
medicines. At present we are engaged in some
20 out-licensing discussions, which we expect to
progress in FY 26. These discussions cover:
- The Maxigesic family of medicines, where we are
gradually filling in gaps in the global footprint
- Products that have recently emerged from our
development programme including Crystaderm,
Capsaicin pain relieving cream, and our Micolette
microenema.
- A portfolio of 24 hospital injectables that we
are developing through AFT Pharmaceuticals
Sinoject. Together these injectables target a
significant market for our operations in Australia,
New Zealand, Singapore, Hong Kong, South
Africa, Canada, and UK worth more than US$450
million. Securing a significant pipeline for all of
our territories is an important strategic aim. Out-
licensing discussions have been initiated in other
markets such as the EU and Middle East where
the target market is worth over US$1 billion.
- Niche injectables that we acquired in 2024
from a bankrupt German company where we
have already secured some agreements and
additionally are working on further distribution
agreements in selected EU markets.
WORKING TO IMPROVE YOUR HEALTH | 14
REGIONAL PERFORMANCE
Extending our research
and development pipeline
PROJECT
1
PATENTPARTNERSHIP AND APPLICATION
Hospital injectables
Targeted range of 24 injectables
N /AEdge Pharmaceuticals. Injectables offer strong
opportunities. (AFT affiliates alone –
AU, NZ, SG, MY, HK, ZA, CA, UK- offer a target
market of US$450M)
Antibiotic Eye Drop2037 & 2044For drug resistant infections:
- Conjunctivitis, Keratitis, Post Kpro prophylaxis
Iron Infusion Injectable2032 & TBCLate-stage development with Hyloris
Pharmaceuticals targeting a US$7.4B
2
global market
Pascomer2040/2044Port Wine Stains (AFT) & Facial Angiofibroma
(Partner)
Strawberry Birthmarks2041 & 2044Gillies McIndoe & Massey Ventures
Burning Mouth SyndromeTBCHyloris Pharmaceuticals
Vulvar Lichen Sclerosis TBCHyloris Pharmaceuticals
Keloid Scars, topical scars2041Gillies McIndoe and Massey Ventures
NasoSURF
for Conscious Sedation
2036Multiple potential applications
1
In order of maturity
2
www.biospace.com/intravenous-iron-drugs-market-size-to-worth-around-us-7-41-billion-by-2033
AFT has extended its research and development pipeline. Towards the end of FY 25 we strengthened
our partnership with Belgium’s Hyloris Pharmaceuticals with an agreement to in-license and complete
development of a late-stage novel innovative injectable iron deficiency therapy.
AFT and Hyloris are now collaborating on three different projects, while our R&D program now extends
to 13 separate projects, all of which offer potential significant growth opportunities.
Five of these projects (multiple Maxigesic dose forms, Capsaicin creams, Crystaderm, Kiwisoothe and
Micolette) are in or entering the commercialisation phase while the others are longer term but offer
significant upside, provided the R&D programs are successful. The five projects in the commercialisation
phase are driving the significant number of licensing negotiations that AFT presently has underway.
FY 25 R&D expenditure (expensed and capitalised) rose to $15.0 million from $12.4 million in FY 24, all of which
has been funded through earnings with the increase reflecting the addition of new projects to the portfolio.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 15
RESEARCH AND DEVELOPMENT
SUSTAINABILITY
WORKING TO IMPROVE YOUR HEALTH | 16
Working to improve your health
AFT Pharmaceuticals has delivered a decades-long
record of sales growth built on integrity and a clear
purpose of working to improve the health of our
customers and the communities we serve.
It is a mission that has at its heart a commitment
to sustainability, the maintenance of corporate
governance practices that are aligned with
best practice and high ethical standards,
and a determination to contribute positively
to environmental and social outcomes.
We understand accounting for and managing ESG
considerations is critical to our long-term ability
to create value and improve the health of the
customers and communities we serve.
We established a formal sustainability framework in
2022 following the completion of an analysis of the
material issues to the business. Since then, we have
evolved the framework to ensure we work towards
the opportunities it identifies, manage the risks to
our business, and create shared value with
our stakeholders.
The key evolution in the current year has been that
of our programme to report against the Aotearoa
New Zealand Climate Standards. Notably this year
we have advanced our emissions reduction plan to
deliver on targets consistent with limiting warming
to 1.5 degrees Celsius above pre-industrial levels.
These targets are in line with New Zealand’s
commitment to the Paris Agreement to the United
Nations and achieve net zero emissions by 2050.
The changes build on the work last year to measure
our Greenhouse Gas Emissions (GHG) emissions;
and understand our climate-related risks and
opportunities.
An overview of our climate reporting is covered
on pages 32 and 33 of this report, while our climate
statement in compliance with the Aotearoa
New Zealand Climate Standards is provided
in Appendix 1 on Pages 102 to 122.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 17
SUSTAINABILITY
AFT’s Sustainability Framework
Our Mission: Working to Improve Your Health
AFTs sustainability framework is aligned with
its commitment to operating sustainably and
enhancing the health and wellbeing of the people
and communities in the markets we serve.
It sets out our material ESG issues and identifies
what we see are the six priorities for the business.
The priority areas demonstrate where we believe
we can create the most value for our business,
investors, and other stakeholders.
Underneath each of the six priorities, we have
identified areas of focus, which set out what we will
do to deliver on our priorities. We have detailed
the metrics we use to measure our performance.
In some of these areas, we have established
targets. We expect to evolve and refine these
measures and targets in line with the evolution
of our ESG framework.
The development of the framework and our
performance against it is led by the CFO and
overseen by the Board. As in previous years, we aim
to align our business and community initiatives onto
the United Nations Sustainable Development Goals.
SOCIALGOVERNANCEGOVERNANCE
PRIORITIES
1. Working to improve
health and well being
2. Best practice
corporate governance
3. Ethical and sustainable
value chains
AREAS OF FOCUS
Better health and wellbeing
for patients and communities
Performance measures:
• Product reach and breadth
of therapeutic applications
• Product portfolio expansion
• Contributions to communities
Best quality and safety
systems for manufacturing
and distributing medicines
Performance measures:
• Compliance with best practice
standards in medicine
manufacture
• Our pharmacovigilance
practices and relationships with
our regulators
• Monitoring for counterfeit
medicines
• Product recalls
Innovation in response
to need
Performance measures:
• Investment in research and
development
• Product development portfolio
• Compliance with clinical trial
standards
Complying with all relevant
legal and listing requirements
Performance measures:
• Regulatory and Governance
Code compliance
• Training and education
ESG reporting and transparency
Performance measures:
• Policy adherence by the Board
and Management
• Governance of climate risk
ESG performance in our
value chain
Performance measures:
• Compliance with our Supplier
Code of Conduct and our
Modern Slavery commitments
• Supplier visits
Ethical marketing and sales
practices
Performance measures:
• Compliance with our
Code of Culture and Ethics
and our Anti-bribery and
Corruption Policy
• Compliance with regulatory
advertising codes.
WORKING TO IMPROVE YOUR HEALTH | 18
SUSTAINABILITY
Good Health and Wellbeing
Ensure healthy lives and promote
well-being for all at all ages.
Gender Equality
Achieve gender equality and empower
all women and girls.
Decent Work and Economic Growth
Promote sustained, inclusive, and sustainable
economic growth, full and productive
employment, and decent work for all.
SOCIALENVIRONMENTENVIRONMENT
PRIORITIES
4. Supporting and developing
our people
5. Understanding our climate
risks and taking action
6. Waste
minimisation
AREAS OF FOCUS
Developing our people
Performance measures:
• Training
• Staff turnover
• Wellbeing support
Diversity and inclusion
Performance measures:
• Compliance with our Code
of Culture and Ethics
• Compliance with our
Employment Policy suite
• Remunerating fairly and
transparently
• Monitoring gender, culture
identity, nationality to ensure
diversity.
• Living wage, parental leave,
and pay parity commitments
Health and safety
Performance measures:
• Health and Safety Policy
compliance
• Supplier Code of Conduct
compliance
• Lost time to injury reporting
Undertaking a climate
risk assessment
Performance measures:
• Reporting against the Aotearoa
New Zealand Climate Standards
Working with suppliers
to take action
Performance measures:
• Reporting against the Aotearoa
New Zealand Climate Standards
Improving our
consumer packaging
Performance measures:
• Continuous improvements in
reducing packaging weight
• Introducing recycled material
into our packaging
• Making more of our
packaging recoverable
Reducing waste
in the supply chain
Performance measures:
• Reducing packaging
consumption
• Reducing material towards
landfill
Reduced Inequalities
Reduce inequality within and among
countries.
Responsible Production and Consumption
Ensure sustainable consumption
and production patterns.
Climate Action
Take urgent action to combat
climate change and its impacts.
UN Sustainable Development Goals
The UN Sustainable Development Goals are a collection of 17 interlinked global goals designed to be a
blueprint to achieve a better and more sustainable future for all. The United Nations General Assembly
established these goals in 2015. At AFT we believe we can contribute to six of the goals.
More information on the goals can be found here: sdgs.un.org/goals
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 19
SUSTAINABILITY
100
90
80
70
60
50
40
Business Priorities
Ethical & sustainable supply chains
(including environmental and labour standards)
Product quality &
safety of medicines
Consumer/patient good health
Product Innovation R&D
Employee Health, Safety & Wellbeing
Access to medicines
Workforce: Diversity & Inclusion
Attraction & Retention
Climate change
Packaging: Consumer
& supply chain
Ethical business practices (including anti-bribery and
corruption, sales and marketing practices, lobbying)
Corporate Governance, compliance & transparency
Stakeholders Priorities
Environmental Social Governance
40 50 60 70 80 90 100
ESG Matters Material to AFT’s Business
Materiality: How We Set Our Priorities
AFT has built its Sustainability Framework and
ESG reporting programme on a robust process of
assessing what is material to the company. As a
publicly listed company, material matters are those
that a reasonable person would consider impacting
on the company’s valuation or the sustainability
of our operations.
In line with best practice ESG standards, we also
considered those topics that reflect AFTs most
significant contribution to, and impacts on, the
economy, environment, and people.
To develop and review our materiality assessment,
we use the support of an independent consultancy.
We reviewed materiality topics in the global
and pharmaceutical industry against our
business operations.
We also reviewed media, stakeholder, and investor
commentary on AFT’s business. This enabled
the creation of a list of potential material topics.
From there, we interviewed external stakeholders
and investors on their perceptions of materiality
and the relative significance of these topics.
Management then reviewed this feedback; the
topics; and their relative importance to business
strategy and value creation. The assessment was
then presented to the Board for input and approval.
AFT used the NZX ESG Guidance Note to inform
this approach. AFT first reported on materiality
in its FY22 Annual Report. We reviewed this
materiality assessment externally in FY24.
WORKING TO IMPROVE YOUR HEALTH | 20
SUSTAINABILITY
Patients & Customers
They are the focus of the
company’s efforts: to improve
healthcare outcomes.
Employees
AFT is its people; their well-being
is fundamental to successful
execution of our strategy.
Investors & Lenders
Investors and lenders support
our business financially.
Healthcare Providers
They are crucial in spreading
sustainable healthcare practices
that align with the company’s
health improvement goals.
Regulators
We work with them to ensure
compliance with health,
safety, and other sustainability
standards and support our work
to provide health solutions.
Suppliers, Distributors & Vendors
They produce our products,
take them to market and help
us to operate our business. We
work with them to ensure ethical
sourcing and environmental
stewardship.
Local Communities
Engagement with communities
helps to align company operations
with local health needs, enhancing
our social license.
Government Agencies
We work with them to support
public health policy initiatives.
Media
It plays a role in communicating
the company’s health initiatives
to the public.
Our Stakeholders
AFT considers the interests of a broad range of stakeholders. We recognise that
this is pivotal to operating a sustainable business and creating long-term value.
Our
Stakeholders
Patients
& Customers
Healthcare
Providers
Employees
Regulators
Suppliers,
Distributors
& Vendors
Investors
& Lenders
Local
Communities
Government
Agencies
Media
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 21
SUSTAINABILITY
PRIORITY 1:
Working to Improve Health and Wellbeing
Access To Medicines
We recognise access to medicines is an important
issue. We work hard to ensure a continuous and
uninterrupted supply of our critical products to
our customers and markets by holding significant
stock holdings as opposed to a just-in-time delivery
schedule. During the period we did not suffer any
significant supply interruptions.
Using Promotion For Good
AFT regularly leverages its promotional budget to
deliver profile and goodwill to deserving charities.
Alongside Chemist Warehouse our Australian
business joined a charity gala in aid of the Save
Our Sons Duchenne Foundation, an organisation
dedicated to improving the lives of young
Australian boys living with Duchenne and Becker
Muscular Dystrophy. This builds on work in the
prior year with Chemist Warehouse, to raise money
for charities sponsored by the New Zealand Super
Rugby Franchises.
FOCUS AREA:
Better Health and Wellbeing
for Patients and Communities
Improving the health of our customers is the
reason we exist, we work to research, develop,
commercialise, and distribute medicines and
other healthcare products that deliver healthcare
improvements.
Performance:
• We expanded our portfolio of medicines
and the geographies where we operate.
• We contributed to causes and people that
promote the health and wellbeing in the
communities in which we operate.
Extending Our Reach With New
And Innovative Medicines
Our portfolio of 150 plus medicines spans our
seven core therapeutic categories of pain, eyecare,
vitamins, allergy, gastrointestinal medications,
dermatology, and hospital products. The portfolio
continues to expand with the launch of additional
new products in FY25. We have also expanded the
territories where our products are sold in more
than 80 countries.
Wesleyan Medicine Mission
We once again supported
Wesleyan Medicine Mission
to Bougainville led by
Dr. Amanda Mitchell and
Michelle Yates, alongside the
Wesleyan Methodist Church
of Bougainville. It was the
organisation’s eighth mission
to Bougainville.
During the two weeks on the
ground the mission provided
10 medical clinics in faith-based
facilities in 9 different locations.
It provided 641 one-on-one
consultations in Tok Pigin
to individuals, some of whom
had multiple medical issues
but lacked the resources
to solve them.
Michelle Yates at a clinic in Bougainville,
a trip supported by AFT.
WORKING TO IMPROVE YOUR HEALTH | 22
SUSTAINABILITY
FOCUS AREA:
Innovation in Response
to Need
Performance:
• Research and Development expenditure
was $15.0 million.
• Our product development portfolio increased
to 13 key research and development programs
from 9 in the prior year.
• All clinical trials are conducted within
international codes and standards.
We work to create innovative medical solutions in
areas of high unmet need, creating future value
for the business. We achieve this by leveraging our
global partnerships and by developing our own
intellectual property.
In the past year, we spent $15.0 million on research
and development, an increase on the spending in
the prior year. These resources have been devoted
to advancing our research and development
portfolio towards commercialisation.
AFT’s research and development pipeline now
extends to 13 separate projects — 5 largely
completed and 8 underway — from 9 in the prior
year. The latest addition was a new iron infusion
therapy product in early March 2025 (see below).
All these projects offer strong potential to further
accelerate our long-term growth and support the
global diversification of the business across the
OTC, Hospital and Prescription channels and across
multiple markets internationally.
Meeting International
Clinical Trial Standards
AFT is committed to ensuring all its clinical trials
are conducted in a manner that not only respects
the participants but also produces reliable,
meaningful, and internationally accepted data,
thereby contributing to the advancement of medical
knowledge and the development of new treatments.
All our trials are conducted within the International
Council for Harmonisation of Technical
Requirements for Pharmaceuticals for Human Use
(ICH) guidelines and specifically the ICH E6 and E8
standards (see below)
These standards cover the ethical and scientific
quality of designing, conducting, recording, and
reporting trials that involve human subjects. They
also provide for a unified standard to facilitate the
mutual acceptance of clinical data by regulatory
authorities in the core ICH regions, which include
the European Union, Japan, and the United States,
and are recognised globally by many countries
including New Zealand, Australia, and many
countries in Asia.
In these countries these standards are overseen
and administered by independent regional
oversight bodies such as the US Food and Drug
Administration. Meanwhile, wherever we conduct
clinical research, it is always overseen by ethical
research bodies.
FOCUS AREA:
Best Practice Quality and Safety
Systems for Manufacturing
and Distributing Medicines
Performance:
• No products were sold into markets without
meeting regulatory requirements.
• No notifications of concern were received
in relation to counterfeit medicines.
• We made no product recalls.
• No inspections of our manufacturing sites by
regulators have revealed any concern concerning
medicines that we are selling.
Delivering Safe And Quality Medicines
Medicine safety and quality are at the foundations
of our business, our financial well-being, and our
corporate reputation.
We also understand that the multiple national
regulators that approve our products for sale, as
well as our customers and sales and distribution
partners, will accept nothing less.
Whenever we take a new medicine to market or
in-license a product we must meet the stringent
regulatory requirements set and administered by
national food and medicine regulators.
Registration of a medicine requires independent
analysis and approval of the therapeutic claims we
make by relevant regulators and the evidence and
research we have undertaken to make those claims.
Registration also requires AFT to file and update
safety information with regulators and maintain
product traceability information. It also requires
compliance with Good Manufacturing Practice
(GMP) to ensure our products are consistently
produced, controlled, and shipped according to
nationally mandated quality standards.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 23
SUSTAINABILITY
We are dedicated to managing and complying with
regulatory processes and overseeing our research
and development processes.
We and our licensees monitor the markets in
which we operate for counterfeits or copies of our
medicines. Meanwhile, anti-tamper devices in our
packaging such as seals, and blister packs protect
us against product interference, and we continually
review new technologies and practices to ensure
we evolve with the industry.
We operate a Board-level committee, the
Regulatory and Product Development Oversight
Committee, which oversees our regulatory and
product risk management framework.
The committee charter is available on the investor
section of our website. Over the last year we have
maintained our strong record for product safety
and quality.
No products have been sold into the market
without meeting regulatory requirements, we have
received no notifications of concern in relation to
counterfeits, nor have we issued any product recalls.
Good Manufacturing Practice Regulators
Enforcing Manufacturing Standards
Good Manufacturing Practice (GMP) is a baseline
requirement we and international regulators impose
on all suppliers of medicines. It plays a crucial
role in ensuring the quality of pharmaceutical
products, focusing on minimising risks inherent
in pharmaceutical production that cannot be
eliminated through testing the final product.
GMP practices are primarily specified by the
International Council for Harmonisation of Technical
Requirements for Pharmaceuticals for Human
Use (ICH) (see page above). They cover all aspects
of production, from the raw materials, facilities,
and equipment to the training and personal
hygiene of staff.
While GMP does not specifically target
environmental matters, it can also indirectly
contribute to environmental safety through
the efficient use of resources and the reduction
of waste production, as the practices encourage
the efficient and responsible use of raw materials
and energy.
GMP standards are enforced by national regulatory
food and drug regulators. These agencies conduct
regular inspections and audits of pharmaceutical
manufacturing facilities to ensure compliance, and
where breaches of process are found, they have a
range of enforcement actions at their disposal that
range from fines to mandating a cessation
of production.
The International Council for Harmonisation
of Technical Requirements for Pharmaceuticals
for Human Use (ICH) aims to achieve greater
harmonisation worldwide for the development
and approval of safe, effective, and high-quality
medicines in the most resource-efficient manner.
It specifies several key standards relevant to
AFT including good clinical practice, general
considerations for clinical trials and good
manufacturing practice.
ICH E6: Good Clinical Practice (GCP)
The ICH E6 guideline provides a unified standard
to facilitate the mutual acceptance of clinical data
by regulatory authorities in the ICH regions,
which include the European Union, Japan,
and the United States.
ICH E8: General Considerations
For Clinical Trials
The ICH E8 guideline provides general
considerations for the conduct of clinical trials,
emphasising the importance of scientific quality
in the design, conduct, recording, and reporting
of clinical trials. It aims to ensure that clinical trials
are ethically justifiable and scientifically sound.
WORKING TO IMPROVE YOUR HEALTH | 24
SUSTAINABILITY
CASE STUDY:
Improving patient care: iron infusion
A novel injectable to treat iron deficiency that
has the potential to make iron infusions more
tolerable is the latest project added to our product
development portfolio.
The late-stage research and development
program for the New Chemical Entity (NCE)
is a collaboration with Belgium’s Hyloris
Pharmaceuticals, the commercialisation partner for
the intravenous form
of our Maxigesic pain relief medicine. The iron
injectable product holds out the potential for some
significant and unique features to alleviate iron
deficiency, a common condition that affects 15%
of the world population.
It offers AFT and its partners entry into a market,
which is forecast to more than double from around
US$3.2 billion in 2023 to US$7.4 billion in 2033
1
.
The NCE Injectable Iron is a well-advanced project
having completed Phase 2b trials.
Once commercialised it will extend AFT’s strong
position in iron medicines in the over-the-counter
channel, into the prescription channel. AFT’s
current OTC portfolio includes Ferro-liquid,
FerroTab, Ferro-F-Tab, Ferro-sachets, Ferro
Liposachets and FerroMalt which cumulatively
represents a significant position in the Australasian
iron medicines market.
1 www.biospace.com/intravenous-iron-drugs-market-size-to-worth-around-us-7-41-billion-by-2033
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 25
SUSTAINABILITY
PRIORITY 2:
Best Practice Corporate Governance
The Board and Management of AFT are committed
to ensuring that the company maintains corporate
governance practices in line with best practice and
adheres to the highest ethical standards.
FOCUS AREA:
Complying With all Relevant
Legal And Listing Requirements
FOCUS AREA:
ESG Reporting
And Transparency
Performance:
• We have reviewed all key governance policies
and received management confirmation of
compliance.
• The Board and its standing committees have
reviewed and evaluated their performance and
considered training needs.
• No issues of concern or policy breaches have
been notified to the Board in relation to our
Code of Culture and Ethics, Modern Slavery,
Securities Trading, Conflicts of Interest,
Whistleblowing and Market Disclosure policies.
• We have complied with all disclosure standards.
The AFT Board has this year continued to evolve
AFTs corporate governance framework to ensure
it is aligned with advances in global and regional
expectations and regulations.
Key developments in our governance framework
over the last year have included the further
evolution of our sustainability framework. This has
seen the company further embedding oversight
and management of climate-related risks and
opportunities into Board and company policy and
procedures including:
• Regular meetings of the Climate Governance
Working Group, the management led committee
that assesses and manages climate related risks
and opportunities and reports to the Board on
these matters regularly.
• The formulation of a carbon reduction plan
aligned with a 1.5 degrees Celsius warming
pathway
• The completion of AFTs second climate
statement in compliance with the Aotearoa
New Zealand Climate Standards. A summary
of the disclosure is included in this section and
the climate statement is in Appendix 1 on pages
102 to 122 of this report.
AFTs governance charters and policies can be
found in the Investor Centre on the Company’s
website.
WORKING TO IMPROVE YOUR HEALTH | 26
SUSTAINABILITY
PRIORITY 3:
Ethical and Sustainable Value Chains
AFT is committed to operating an ethical and
sustainable supply chain. Our supply chains
are extensive and sometimes complex, with a
high proportion of products sourced from large
and reputable pharmaceutical companies and
manufacturers based in regions including Europe,
North America, India, and Asia. Due to the extent of
these networks, it is critical to provide appropriate
governance and oversight of them.
FOCUS AREA:
ESG Performance Of Our
Value Chain
Performance:
• Our key product suppliers have confirmed their
compliance with our Supplier Code of Conduct
and our Modern Slavery Policy.
• The visits we have made to suppliers during the
year have not revealed any instances of concern
related to ESG performance in our value chain.
AFT has put in place a broad range of measures
related to our commitments to ethical and
sustainable value chains. At the heart of these
measures is a comprehensive system of monitoring
and control across AFT, the companies that it
controls and its supply chain. Specifically, the
Board Charter requires the Board to review and
ratify group systems of internal compliance and
control to determine the effectiveness of those
systems.
The Board also operates an Audit and Risk
Committee (ARC) to assist with its responsibilities
and commitments. The ARC, among other
things, is charged with assisting the board
in overseeing managements implementation
of the Company’s risk management framework
and that management has appropriate processes
for identifying, responding to, and regularly
reporting on risks (including Modern Slavery
and climate-related risks) and that those
processes are operating effectively.
We also have a range of internal policies and
codes that set standards for Directors, employees,
consultants, contractors, interns, and secondees of
AFT Pharmaceuticals and our related companies
that are focused on the management of these risks.
They notably include:
• A Code of Culture and Ethics.
• A Modern Slavery Policy to address potential
Modern Slavery risks in our business and in our
supply chain.
• An Anti-Bribery and Anti-Corruption policy.
• A Whistle Blowing Policy.
We operate a Supplier Code of Conduct that
among other things, requires attestation to our
Modern Slavery Policy (see above), compliance
with applicable, national, and international laws
and international labour standards, and strong
environmental practices.
It also requires suppliers to observe and model
ethical business practices; and establish and follow
effective policies and procedures to promote
workplace health and safety.
Our key suppliers have attested compliance
with our Supplier Code of Conduct and Modern
Slavery policy. In addition, ahead of engaging new
suppliers we undertake due diligence to ensure we
select and collaborate with those that align with
our values and the way we do business.
We also periodically visit key manufacturing
sites, and none of these visits have revealed any
instances of concern. All manufacturers of our
medicines are required to operate under GMP
requirements (see page 24).
For further detail on our approach, please see our
Governance Statement on pages 42 to 57 of this
report and the governance section of our website.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 27
SUSTAINABILITY
FOCUS AREA:
Ethical Marketing
And Sales Practices
AFT is committed to following ethical sales and
marketing practices in all the markets where we
operate and license our products. We understand
this commitment is vital to maintaining trust
in our business.
Performance:
• No notification of breaches of regulatory
advertising codes in any of the markets where
our products were sold.
The sale and marketing of our products is regulated
in all the markets where we sell our products
or where we out-license them to third parties.
In Australia, our largest market, the marketing, and
advertising of pharmaceutical consumer products
is largely governed by the Therapeutic Goods
Advertising Code. For prescription medicines we
observe the Medicines Australia Code of Conduct.
Both regimes are overseen by the regulator, the
Therapeutic Goods Administration.
Similarly, in New Zealand, our practices align with
the Therapeutic and Health Advertising Code.
In both markets we regularly engage third parties
to ensure compliance and have processes in place
to ensure compliance with broader regulations.
Beyond these regions, we are committed to
complying with local codes. Licensees’ adherence
to relevant legal frameworks and sales and
marketing codes form part of our contractual
engagement with them
WORKING TO IMPROVE YOUR HEALTH | 28
SUSTAINABILITY
PRIORITY 4:
Supporting and Developing Our People
AFT is committed to ensuring equal opportunity
for all its people regardless of race, nationality,
gender, sexual orientation, age, religion, or physical
ability. We are also committed to developing our
people through education, training and providing
workplace flexibility, including flexible work hours
to accommodate employee needs.
FOCUS AREA:
Diversity
And Inclusion
Performance:
• Strong gender, age, cultural diversity across
AFTs workforce.
• We have a loyal and stable workforce.
• Annual internal review reveals no gender
remuneration disparities.
• All staff and contractors are paid at least the
living wage.
We recognise that building a culture of diversity,
accountability, and fair reward will deliver improved
business performance and help to ensure we
can attract and retain highly skilled people.
These commitments are underpinned by Board-
level policies including a Code of Culture and
Ethics, Diversity & Inclusion, Remuneration and
Whistleblowing, all of which are available on the
investor section of our website.
We are proud of the diversity we have achieved
at AFT and believe it is one of our core strengths.
As at the end of March 2025 we had 119 employees
up from 110 in FY 24.
Our workforce continues to reflect the diversity of
New Zealand and Australia and the other markets
where we operate. At the end of March 2025, the
team hailed from 33 different cultural identities
and 22 birth countries, with a gender split of
61% women and 39% men and an age spread of
employees ranging from 21 years to 71 years.
Gender Composition of AFT’s Workforce
The respective numbers and proportions of men
and women at various levels within the AFT
workforce as of 31 March 2025 and 31 March 2024
are set out in the table below:
FemaleMale
2025¹2024¹2025¹2024¹
Directors 233%233%467%467%
Officers² 450%450%450%450%
Workforce7361%6963%4639%4137%
1
Figures at the end of the relevant financial year.
2
Officers are considered to be the Managing Director and his direct
reports. Managing Director Hartley Atkinson and Chief of Staff
Marree Atkinson are included in both the number of Directors and
the number of Officers.
Our success on these diversity measures reflects our
determination to promote a culture that is free from
discrimination, harassment, and victimisation. It also
reflects our focus on emphasising the accountability
of AFT Pharmaceuticals leaders to cultivate a
culture of inclusion in which the strengths of every
individual are recognised and valued.
These efforts are supported by an ongoing
programme to educate our team on the importance
of creating a diverse and inclusive environment
and providing awareness of the potential for
unconscious bias in people management processes.
Our team is also supported by continuous workplace
policy development.
We monitor the diversity of our workforce. Given
that we are an internationally focussed business,
we aim to ensure that our workforce continues to
benefit from this broad range of perspectives and
backgrounds, and we report quarterly to the board
on the number of employees and the spread of
gender, age, birth country, and cultural identity.
Under 30 13%
30-44 36%
45 and over 50%
Female 61%
Male 39%
Employees by
Age Diversity
(%, as at 31 March 2025)
Employees by
Gender Diversity
(%, as at 31 March 2025)
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 29
SUSTAINABILITY
Remuneration And Gender Pay Equity
We strive to ensure all employees and contractors
receive equal and fair treatment in all aspects of
the Company’s employment policies and practices
and that they are incentivised towards the success
of the company.
We hire the best person for the job, regardless of
gender, age, and culture, and incentivise our people
in a way that is aligned with the long-term success
of the company.
To ensure we deliver on these commitments we
undertake an annual merits-based remuneration
review, which provides visibility to management in
relation to the parity of working conditions and pay
across the workforce.
The review compares our core (directly comparable
roles) with other listed companies of a similar
market cap each year. We also manually check each
person is being paid according to their role within
the company and cross check there is no disparity
between male and female where they are employed
for the same role.
We are comfortable that we have achieved gender
pay equity through a series of reviews detailed in
previous reports, but it is clear that in some teams
there is over-representation of one gender over
the other.
However, this reflects the higher applicant rate
of those genders when recruiting new members
to teams. This factor is taken into consideration
when making future hires, with the aim to improve
the balance over time, where possible. We are
meanwhile committed to paying the living wage
at a minimum but reflecting nature of our business
and the capabilities and skills of our people, the vast
majority receive remuneration well above this level.
Further detail is covered in the remuneration
section on pages 58 to 62 of this report.
FOCUS AREA:
Developing
Our People
We continue to upskill our people recognising
the role they play in maintaining our competitive
advantage and building the company’s reputation
as a great place to work.
In addition to the formal induction processes into
our company culture and policies, we support
our staff in pursuing development of skills in their
chosen fields.
AFT pays for all professional membership fees
such as pharmacists, accountants, and lawyers to
ensure their continued education and professional
memberships are maintained.
AFT staff after completing a sweep of the Takapuna beach
Building Culture
We actively work to create a team spirit and culture
of engagement in our offices. An example of our
efforts is the ongoing programme to take our share
of responsibility for keeping the beach in front of
our Takapuna Auckland office clean and free from
plastic pollution.
AFT staff volunteers again spent several sessions
over the year picking up rubbish on the beach
and disposing of it responsibly. This is an ongoing
initiative driven by the AFT Social Committee,
which not only supports our local area but
also builds awareness and stewardship of our
environment. We also have monthly meetings
to celebrate birthdays and staff anniversaries
as well as cultural celebrations.
WORKING TO IMPROVE YOUR HEALTH | 30
SUSTAINABILITY
FOCUS AREA:
Health
And Safety
AFT has a Health and Safety Policy and both the
Board and Management are committed to promoting
a safe and healthy working environment for everyone
working in or interacting with AFTs business.
Performance:
Health and Safety
indicator Target 2025
1
2024
1
Lost time to injuries ZeroAchievedAchieved
Total recordable injuries ZeroAchieved Achieved
1
Year to the end of March
AFT has recorded zero lost time to injuries and
zero recordable injuries over the last five years.
Our Health and Safety Policy requires AFT people
to endeavour to take all practicable steps to
provide a working environment that promotes
health and wellbeing, while minimising the potential
for risk, personal injury, ill health, or damage.
AFT operates an employee-led Health and Safety
Committee, and it meets regularly to monitor and
manage health and safety risks, including hazards,
within the business. We assist employee health by
providing vaccinations and we train our people
in first aid and responses to emergencies such as
cardiac arrests.
We undertake monthly audits of health and safety
practices and performance, and the outcomes of
these audits are reported to the Board. We have a
strong record in health and safety as evidenced by
our performance against health and safety targets
above. Health and safety in our supply chain is
covered through standards laid out in the Supplier
Code of Conduct.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 31
SUSTAINABILITY
PRIORITY 5:
Understanding Our Climate-Related Risks
and Taking Action
We are committed to understanding and
transparently communicating to our stakeholders
the implications of climate change on our business.
We are also committed to ensuring the measures
we are taking to mitigate the material risks,
leverage the opportunities presented and reduce
our GHG emissions are robust, and evidence based.
FOCUS AREA:
Undertaking a Climate-Risk
Assessment
Performance:
• We completed our second climate risk
assessment, and our second climate statement
in compliance with the Aotearoa New Zealand
Climate Standards (see pages 102 to 122).
• We measured our GHG emissions and reviewed
the physical and transitional impacts of climate
change and the material risks and opportunities
to our business.
• We affirmed our findings that business model,
and strategy is largely resilient to future climate
related risks.
Assessing Our Climate Risk
In completing our second climate risk assessment,
we have leveraged external expertise to ensure
we have the capability to understand the risks
and opportunities of climate change and manage
these appropriately. The risk assessment involved
undertaking a process of scenario analysis to
understand the anticipated impact of climate
change on our business model and strategy under
various global warming scenarios.
The most significant physical risks to the business
continue to be the potential for extreme weather to
disrupt manufacturing and distribution. Meanwhile
our transition to a low emissions future could
be hampered by a misalignment in medical and
climate change regulation. Nevertheless, we believe
we are well prepared to refine and implement
our strategy to manage climate related risks and
opportunities.
Based on our second disclosure and our current
information, AFT continues to believe our business
model and strategy is largely resilient to future
climate related risks.
WORKING TO IMPROVE YOUR HEALTH | 32
SUSTAINABILITY
AFT’s Greenhouse Gas Emissions
Over the FY25 year our combined Scope 1 and 2 emissions (disclosed below and in Appendix 1 on pages
102 to 122 of this report) have seen a reduction of 12.5% principally due to a reduction in fuel use in our
fleet. AFT’s GHG emissions are presented as tonnes of carbon dioxide equivalents (tCO
2
e). No base year
restatements have been made.
ScopeCategory Emission sourcet CO
2
e% change from
base year
FY24FY25
Scope 1
Direct emissions
and removals
Mobile combustion331.16290.33-12.33%
Refrigerant leakages0.60N/A**N /A
Total Scope 1331.76290.33-12.49%
Scope 2
Indirect emissions
from imported energy
Purchased electricity
(location-based)
18.5716.19-12.81%
Purchased electricity
(market-based)
17.3218.74+8.20%
Total Scope 2*18.5716.19-12.81%
Total Scope 1 and 2*350.33306.52-12.51%
GHG emissions intensity* (Scope 1+2 per $million revenue)1.871.48-20.86%
* Reported using a location-based methodology.
** Excluded in FY25 as the emission source has been identified as de minimis (<1%).
Our emissions inventory covers the period 1 April 2023 to 31 March 2024, and 1 April 2024 to 31 March
2025. An equity share consolidation approach has been used. The inventory has undergone independent
assurance from Toitū Envirocare to ensure accuracy and completeness.
We have decided to defer the disclosure of our Scope 3 emissions until we report our results for the year to
the end of March 2026. We decided it prudent to take this approach, allowed under an adoption provision
to the Aotearoa New Zealand Climate Standards in November 2024, given the complexity of the task
and the ongoing Ministry of Business Innovation and Employment consultation on the regime.
FOCUS AREA:
Working With Suppliers
Committed To Climate Action
We are committed to mitigating the risks and
taking advantage of the opportunities of climate
change and aligning our business model with a
future that’s climate resilient.
Performance:
• Climate change matters were included in
strategic planning processes, and we have
begun to take action that is founded on robust
evidence and an understanding of what matters
most to our stakeholders.
• We have affirmed science-aligned targets for
our Scope 1, 2 and 3 emissions, consistent with
limiting global warming to 1.5 degrees Celsius.
• We have developed a carbon reduction plan
for Scope 1 and 2 emissions.
Climate Change Strategy
AFT has affirmed its commitment to responsible
environmental stewardship by taking steps to
manage our climate-related risks and reduce
GHG emissions.
Our near-term commitments are to reduce Scope
1, Scope 2, and Scope 3 by 42% by 2030 on a FY24
base year. Our Scope 1 target will be achieved
primarily by transitioning our existing fleet from
internal combustion engines to hybrid electric and
battery vehicles. Our Scope 2 target commitment
will be achieved through purchasing certified
renewable energy instruments for both
our New Zealand and Australian offices. We have
yet to develop a plan to achieve our longer-term
net zero target.
Further detail is covered in AFT’s Climate
Statement in Appendix 1 on pages 102 to 122
of this report.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 33
SUSTAINABILITY
PRIORITY 6:
Waste Minimisation
AFT is working to minimise the waste it generates.
Our immediate approach towards this vision and
to make a meaningful difference is to take a life-
cycle approach to packaging from manufacture
to disposal, with a keen focus on supply-chain,
distribution, consumer, and hospital packaging.
FOCUS AREA:
Improving Our Consumer
Packaging
FOCUS AREA:
Reducing Waste
In The Supply Chain
AFT is a member of the Australian Packaging
Covenant Organisation (APCO), which partners
with government and industry to reduce the
harmful impact of packaging on the environment.
It achieves this by promoting sustainable design
and recycling initiatives, waste to landfill reduction
activities and circular economy projects. Our latest
APCO assessment of our organisational efforts
recognises AFT as ‘leading’ in its efforts against the
organisation’s goals, an improvement on its rating
of ‘advanced’ in FY 24.
We achieved ‘beyond best practice’, the highest
APCO rating for the governance of our packaging
strategy and the design and procurement of
packaging and our management of on-site waste.
Our initiatives to integrate recycled content into our
packaging was rated as advanced, while we achieved
a ‘good progress’ rating against our goals for disposal
labelling and the recoverability of our packaging.
Our report covers primary packaging (the material
that contacts the medicine), secondary packaging
(encompasses the primary packaging) and the
outer packaging.
Primary packaging is regulated according to
strict pharmacopeial standards and therefore
poses unique challenges to our recoverability
efforts. However, despite these challenges, 64%
of our packaging (encompassing both primary
and secondary packaging) now contains recycled
materials. The latest APCO report will be available
on our website when finalised.
Performance:
Governance and Strategy
APCO Rating: ‘Beyond Best Practice’
AFT has integrated sustainable packaging
strategies into its procurement processes.
We have achieved all the APCO 2025 goals with
our clear strategy for packaging sustainability,
internal and external communication of the
strategy and objectives, and participation in
initiatives to promote packaging sustainability.
Design and Procurement
APCO Rating: ‘Beyond Best Practice’
All our packaging was reviewed against
sustainability principles, in line with the prior year
and optimised for material efficiency
Recycled Content
APCO Rating: ‘Advanced’
We maintained our efforts to use recycled materials
in packaging. More than 65% of our packaging
has at least some packaging made from recycled
material up substantially on the prior year’s 24%.
Recoverability
APCO Rating: ‘Good Progress’
We advanced our efforts in recycling with 98%
of packaging materials designed to be recyclable,
steady on the prior year’s result of 97%.
Disposal Labelling
APCO Rating: ‘Good Progress’
We enhanced consumer guidance by lifting the
disposal labelling on packaging to 20.4% from
15% last year and we expect this number
to continue to increase.
On-site Waste
APCO Rating: ‘Beyond Best Practice’
We maintained our strong record of waste
management on-site, with 99% of waste now
recyclable.
Problematic Materials:
APCO Rating: ‘Advanced’
The introduction of the Pharmacycle, Teracycle
and RedCycle schemes in Australia, which allows
the recycling of PVC blister packs and PET for
bottles that are required to protect the integrity
of our medicines, represents a substantial advance
in removing problematic materials from our
supply chain.
WORKING TO IMPROVE YOUR HEALTH | 34
SUSTAINABILITY
Reconciliation of EBITDA to GAAP
AFTs standard profit measure prepared under New Zealand GAAP is net profit after
tax. AFT has used the non-GAAP profit measure of EBITDA when discussing financial
performance in this document.
AFT directors and management believe that this measure provides useful information as it
is used internally to evaluate performance of business units, to establish operational goals
and to allocate resources.
Non-GAAP profit measures are not prepared in accordance with NZ IFRS (New Zealand
International Financial Reporting Standards) and are not uniformly defined, therefore the
non-GAAP profit measures reported in this document may not be comparable with those
that other companies report and should not be viewed in isolation or considered as a
substitute for measures reported by AFT in accordance with NZ IFRS.
GAAP to Non-GAAP reconciliation
NZ$’000’s
Year ended 31 March 20252024
Net profit after tax attributable to owners of the parent 11,96215,609
Less: Finance income (25)(66)
Add back: Interest costs 2,8213,686
Add back: Other finance loss/(gain) (1,182)(1,404)
Add back: Depreciation 994(1,003)
Add back: Amortisation 1,675(1,010)
Add back: Income tax expense/(benefit) 4,6346,410
EBITDA 20,87926,248
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 35
WORKING TO IMPROVE YOUR HEALTH | 36
GOVERNANCE
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 37
An Experienced and Skilled Board
AFT has an experienced and balanced Board with a diverse range of skills. It comprises an Independent
Chairman, three other Non-Executive Independent Directors and two Executive Directors. Their names
and information about their skills, experience, and background, together with information about
AFT’s management team, are set out below and on the following pages.
David Flacks
CHAIRMAN
Appointed 22 June 2015
David has a number of
governance roles and has been
chair of AFT since the IPO in
2015. David is also chair of the
Suncorp New Zealand group of
companies and is a Director of
Todd Corporation and a number
of environmentally focused
pro bono organisations. He is a
former chair of the NZ Markets
Disciplinary Tribunal and the
NZX Regulatory Governance
Committee and a former
member of the Takeovers Panel.
He is a Director of boutique
corporate law firm Flacks &
Wong. David was for many years
a Senior Corporate Partner
at Bell Gully and was General
Counsel and Company Secretary
of Carter Holt Harvey during the
1990’s. He is a law graduate from
Cambridge University.
Dr Hartley Atkinson
CHIEF EXECUTIVE OFFICER,
EXECUTIVE DIRECTOR,
AND CO-FOUNDER
Appointed 4 September 1997
Hartley founded AFT in 1997.
Before founding AFT, Hartley
worked at Swiss multinational
pharmaceutical company, Roche,
for eight years where he held
positions as Sales & Marketing
Director, Medical Director,
Product Manager and Medical
Manager. Prior to his work at
Roche, Hartley was a Drug
Information Pharmacist and
Researcher at the Department
of Clinical Pharmacology,
Christchurch Hospital. Hartley
is the author of a number of
scientific publications and his
work has been published in the
prestigious New England Journal
of Medicine. Hartley holds a
doctorate in Pharmacology,
a Masters in Pharmaceutical
Chemistry with distinction, and a
Degree in Pharmacy, all from the
University of Otago.
Marree Atkinson
CHIEF OF STAFF,
EXECUTIVE DIRECTOR,
AND CO-FOUNDER
Appointed 4 September 2012
Marree has been involved in
all aspects of AFT’s business
since its establishment in
1997, including roles in sales,
regulatory affairs, customer
services and logistics. Marree’s
role as Chief of Staff sees her
involved in the day-today
running of AFT’s head office
including managing staffing
requirements and special
projects involving AFT’s head
and affiliate offices. Marree is
a registered nurse previously
practising at Waikato Hospital.
WORKING TO IMPROVE YOUR HEALTH | 38
GOVERNANCE
Andrew Lane
INDEPENDENT
NON-EXECUTIVE DIRECTOR
Appointed 28 September 2023
Andrew has more than 30 years’
experience of leadership in the
global pharmaceuticals industry
with expertise across a broad
range of disciplines including
finance, manufacturing, sales,
marketing, and strategy. Most
recently he was Global President
of Abbott Laboratories Pharma
Division where he led a multi-
billion-dollar operation that
had 30 manufacturing plants,
12 Innovation and Development
sites and 40,000 staff covering
more than 100 countries. Before
that he was Vice President of
Takeda, Asia Pacific, where
he managed the company’s
operations in 12 countries, which
included three factories and
2,000 staff. He has also held
senior roles with multi-national
pharmaceutical companies
Nycomed, DKSH, Novartis,
and Sandoz.
Allison Yorston
INDEPENDENT
NON-EXECUTIVE DIRECTOR
Appointed 12 November 2024
Allison brings to AFT more
than 20 years of blue-chip
fast-moving consumer goods,
telecommunications and retail
marketing experience gained
across Australia and New
Zealand at senior management
and C-suite levels. She has
managed brand turnarounds
and grown and developed
marketing teams to deliver share
gains in competitive markets
and is experienced at managing
multi-brand portfolios including
both product and corporate
brands. She is currently Director
of Marketing at Griffins Snacks
and is a former Director of the
Australian Beverages Council
and a former Chief Marketing
Officer at Suntory Beverage &
Food Oceania. Prior to Suntory
she held senior marketing roles
at Vodafone, Fonterra and
Sanitarium. Allison is a Graduate
of the Australian Institute
of Company Directors Course
and a member of the AICD.
Dr Ted Witek
INDEPENDENT
NON-EXECUTIVE DIRECTOR
Appointed 23 December 2020
Ted served Boehringer Ingelheim
Pharmaceuticals for nearly
25 years in clinical research and
leadership roles, including CEO
of its Canadian and Portuguese
operations. Ted was also Chief
Scientific Officer & Senior
Vice President, Corporate
Partnerships, at Innoviva and
on the Board of Directors of
Canada’s Research-Based
Pharmaceutical Companies.
He is currently Professor &
Senior Fellow at the University
of Toronto’s School of Public
Health & Leslie Dan Faculty of
Pharmacy. He holds a Doctor
of Public Health from Columbia
University and a Master of Public
Health from Yale University
and an MBA from Henley
Management College
in the UK.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 39
GOVERNANCE
Our Senior Management Team
Malcolm Tubby
CHIEF FINANCIAL
OFFICER
Malcolm is a qualified Chartered
Accountant in the United
Kingdom, Australia, and New
Zealand and has a wealth of
senior corporate governance
expertise, including roles in
significant public companies as
Chief Financial Officer. He has
experience in senior positions
in public and private companies
in pharmaceuticals, beverages,
insurance and aged care
facilities in Australia and
New Zealand, Malcolm has
been involved with AFT since
its foundation.
Ioana Stanescu
CHIEF SCIENTIFIC
OFFICER
Ioana joined AFT in 2012 and has
overall responsibility for AFT’s
research and development. She
has over 30 years’ experience
in the pharmaceutical industry
including positions such as Vice
President Quality Assurance
& Regulatory Affairs and
Head of Vaccine Business
Area in Finland, and a WHO
Adviser within Central and
Eastern Europe. She has also
coordinated several European
Union funded research grants
and was selected as an Expert
by the European Health
Committee Council of Europe
to participate in a research
study in 1999.
Vladimir Ilievski
REGULATORY
AFFAIRS MANAGER
Vladimir holds a master’s
degree in pharmacy from the
University of Ljubljana, Slovenia,
where he started his career
as a pre-clinical researcher
before moving to New Zealand.
Prior to joining AFT in 2006,
Vladimir worked for Douglas
Pharmaceuticals in various roles
including as a Quality Control
and Quality Assurance Analyst
and as a Regulatory and Senior
Regulatory Associate. Vladimir
has responsibility for product
registrations in countries
in Australasia, Asia,
the Middle East, Canada
and the United Kingdom.
WORKING TO IMPROVE YOUR HEALTH | 40
GOVERNANCE
Louise Clayton
DIRECTOR
INTERNATIONAL BUSINESS
Louise joined AFT in 2017
and is responsible for global
international business
development, alliance
management and marketing.
Louise has more than 20
years’ experience in driving
international brands within
sales, brand marketing,
product sourcing, new product
development, and new market
expansion. Her core focus is
global expansion, brand growth
and alliance management
through strong partnerships with
licensees, distributors, and AFT
affiliates.
Scott Crawford
GENERAL MANAGER
PROMOTED PRODUCTS
Scott joined AFT in 2013 and is
responsible for sales in Australia
and New Zealand across all
channels including hospital,
primary care, pharmacy,
supermarkets, petrol, and
convenience. His role as General
Manager ANZ involves the
coaching and development
of account managers, field
supervisors and trade marketing
across Australia and New
Zealand. Scott has more than
20 years’ experience in
fast-moving consumer goods
in both Australia and New
Zealand and has previously
held roles with Red Bull,
Ferrero Confectionery, Smiths
Snackfoods and National Foods.
Murray Keith
GROUP MARKETING MANAGER
Murray joined AFT
Pharmaceuticals in 2011 and
is responsible for managing
our marketing function, with a
primary focus on the Australian
and New Zealand markets. His
extensive marketing career
prior to joining AFT includes a
range of roles working across
a number of blue-chip brands
and companies, including Nestlé,
Lion Nathan, Bay of Plenty
Rugby, Nestlé Purina,
New Zealand Lotteries
and Fonterra Brands.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 41
GOVERNANCE
Corporate Governance Statement
The Board and management of AFT
Pharmaceuticals Limited (‘AFT’ or ‘the Company’)
are committed to ensuring that the Company
maintains corporate governance practices in line
with best practice and adheres to the highest
ethical standards. The Board has had regard to
the NZX Listing Rules and a number of corporate
governance recommendations when establishing
its governance framework, including:
• the NZX Corporate Governance Code as dated
31 January 2025 (‘NZX Code’); and
• the ASX Corporate Governance Council’s
Corporate Governance Principles and
Recommendations (notwithstanding AFT is not
required to follow these recommendations owing
to its ASX Foreign Exempt Listing).
The NZX Listing Rules require AFT to formally
report its compliance against the recommendations
contained in the NZX Code and it sets out in this
Corporate Governance Statement how it has
implemented the recommendations in the current
version of the NZX Code.
Except to the extent outlined in this Corporate
Governance Statement, the Board considers
that AFT’s corporate governance structures,
practices and processes have followed all the
recommendations in the NZX Code in the financial
year ended 31 March 2025.
For ease of reference, relevant sub-headings
in this Corporate Governance Statement
include a reference to the primary relevant
recommendation(s) in the NZX Code to which
the disclosures under that sub-heading relate.
This is a general guide only, and disclosures under a
particular sub-heading are not limited solely to the
recommendation(s) referred to in that sub-heading.
AFT’s governance charters and policies can be
found in the Investor Centre on the Company’s
website (https://investors.aftpharm.com/
investors/). AFT’s corporate governance charters
and policies have been approved by the Board and
are regularly reviewed by the Board and amended
(as appropriate) to reflect developments in
corporate governance practices.
This Corporate Governance Statement was
approved by the Board on 22 May 2025 and is
current as at that date.
David Flacks
Chair
Stock Exchange Listings
AFT is incorporated in New Zealand and is listed
on the NZX Main Board and on the Australian
Securities Exchange (‘ASX’) as an ASX Foreign
Exempt Listing. As an ASX Foreign Exempt Listing,
AFT needs to comply with the NZX Listing Rules
(other than as waived by NZX) but does not need
to comply with the vast majority of the ASX Listing
Rule obligations.
WORKING TO IMPROVE YOUR HEALTH | 42
GOVERNANCE
SHAREHOLDERS
AFT PHARMACEUTICALS BOARD
Audit and Risk
Committee
Regulatory and
Product Development
Oversight Committee
Remuneration
and Nominations
Committee
MANAGING DIRECTOR
SENIOR MANAGEMENT TEAM
AFT PHARMACEUTICALS PEOPLE
Overview of AFT’s Governance Structure
The AFT Board of Directors has been appointed by
shareholders to protect and enhance the long-term
value of AFT and to act in the best interests of AFT
and its shareholders.
The Board is the ultimate decision-making body
of the Company and is responsible for the
corporate governance of it. The role and
responsibilities of the Board are set out in the
Board Charter, which can be found in the Investor
Centre on the Company’s website.
The Board currently comprises a Non-Executive
Chair, three other Non-Executive Directors, and
two Executive Directors, as detailed in the Investor
Centre on the Company’s website and pages
38 and 39 of this report.
The Board has established three standing Board
committees to assist in the execution of the Board’s
responsibilities:
• Audit and Risk Committee;
• Remuneration and Nominations Committee; and
• Regulatory and Product Development Oversight
Committee.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 43
GOVERNANCE
PRINCIPLE 1:
Ethical Standards
“Directors should set high standards of ethical behaviour, model this
behaviour and hold management accountable for these standards being
followed throughout the organisation.”
Code of Culture And Ethics
(Recommendation 1.1)
The Board recognises that high ethical standards
and behaviours are central to good corporate
governance. It has implemented a Code of Culture
and Ethics (‘the Ethics Code’) to guide the
behaviour of its Directors, Senior Managers, and
Employees.
The Ethics Code establishes the framework by
which Directors and staff of AFT are expected
to conduct their professional lives by facilitating
behaviour and decision-making that meets AFT’s
business goals and is consistent with AFT’s values,
policies, and legal obligations.
The Ethics Code is available to staff on AFT’s
intranet and forms part of the induction process
for new employees. Existing staff receive refresher
courses at least once every three years. Regular
reminders are provided to staff about the
application of the Ethics Code.
The Ethics Code addresses:
• AFT’s values and commitments to establishing
an inclusive culture;
• conflicts of interest;
• receipt of gifts;
• corporate opportunities;
• confidentiality;
• behaviours and responsibilities;
• proper use of AFT property and information;
• compliance with laws and AFT policies; and
• reporting issues regarding breaches of the Ethics
Code, legal obligations, or other AFT policies; and
• additional Director responsibilities.
AFT encourages staff to report any concerns they
have about compliance with the Ethics Code, AFT
policies, or legal obligations. It achieves this with
staff-wide communications and has established a
designated email address, that is directed to the
personal emails of all Non-Executive Independent
Directors, for staff to confidentially raise any
concerns they may have.
The Board holds six-monthly reviews of the Ethics
Code and expects any incidents arising under the
Ethics Code to be brought to Directors’ attention
immediately. AFT’s process for managing any breach
of the Ethics Code is detailed in the Ethics Code.
In addition, AFT has implemented the following
stand-alone policies to support the application of
the Ethics Code and define the process for raising
concerns about actual, suspected, or anticipated
wrongdoings within the AFT group of companies:
• Diversity and Inclusion Policy;
• Anti-Bribery and Anti-Corruption Policy;
• Whistleblowing Policy;
• Conflicts of Interest Policy;
• Modern Slavery Policy; and
• Supplier Code of Conduct.
The Ethics Code and the policies listed above are
available in the Investor Centre on the Company’s
website.
Securities Trading Policy
(Recommendation 1.2)
The Company is committed to ensuring that its
people comply with legal requirements not to
trade AFT securities while in possession of inside
information. AFT’s Securities Trading Policy
accordingly applies to all Directors, Officers,
Employees, and Contractors of AFT and its
subsidiaries.
The Securities Trading Policy seeks to ensure that
those subject to the Policy do not trade in AFT
securities if they hold undisclosed price-sensitive
information. The Policy sets out additional rules,
which includes the requirement to seek Company
consent before trading and prescribes certain
black-out periods during which trading in the
Company’s securities is prohibited.
Compliance with the Securities Trading Policy is
monitored through the consent process, through
education and periodic reminders and via
notification by AFT’s share registrar when any
Director or Senior Manager trades in AFT securities.
All trading by Directors and Senior Managers (as
defined by the Financial Markets Conduct Act
2013) is required to be disclosed to NZX and in
AFT’s Interests’ Register.
AFT’s Securities Trading Policy is available in the
Investor Centre on the Company’s website.
WORKING TO IMPROVE YOUR HEALTH | 44
GOVERNANCE
PRINCIPLE 2:
Board Composition and Performance
“To ensure an effective board, there should be a balance of independence,
skills, knowledge, experience and perspectives.”
Role Of The Board
(Recommendation 2.1)
The business and affairs of the Company are
managed under the direction of the Board of
Directors. At a general level, the Board is elected
by shareholders to:
• provide leadership to the Company;
• build sustainable value for shareholders;
• establish the Company’s values and objectives;
• develop major strategies for achieving the
Company’s objectives;
• manage financial and non-financial risks
including those associated with sustainability
and climate;
• determine the overall policy framework within
which the business and Company are operated;
and
• monitor management’s performance and
remuneration with respect to these matters.
The Board has adopted a Board Charter that
regulates internal Board procedure and describes
the Board’s specific roles and responsibilities. The
Board delegates management of the day-to-day
affairs and responsibilities of the Company to the
management team under the leadership of the
Chief Executive Officer (‘CEO’), to deliver on the
strategic direction and goals determined by the
Board. The Chief Executive Officer has, in some
cases, formally delegated certain authorities to his
direct reports within set limits.
The Board regularly monitors and reviews
management’s performance in the execution of its
delegated responsibilities and the appropriateness
of its delegated authority policy.
Board Membership, Size, And Composition
(Recommendation 2.2, 2.3)
The size of the Board is determined by the
Board from time to time, in accordance with the
limitations prescribed in the NZX Listing Rules
and in accordance with the provisions of AFT’s
Constitution and the Board Charter.
As at 31 March 2025 the Board comprised
six Directors:
Director Role
David Flacks Non-Executive Director
and Chair
Allison YorstonNon-Executive Director
Andrew LaneNon-Executive Director
Dr Ted WitekNon-Executive Director
Hartley AtkinsonExecutive Director and Chief
Executive Officer
Marree AtkinsonExecutive Director and Chief
of Staff
The average tenure of Non-Executive Directors
at the date of this report is four years. A biography
of each Director, their qualifications and relevant
experience can be found on pages 38 and 39
of this report and in the Investor Centre on the
Company’s website.
The Board has delegated to the Remuneration
and Nominations Committee the responsibility for
identifying and recommending Director candidates
for the approval of the Board. When recommending
candidates, the Committee takes into account
factors it deems appropriate, including the diversity
of background, experience, and qualifications of the
candidates.
When appointing Directors, the Board undertakes
appropriate background checks. Newly appointed
Directors are required to enter into letters of
appointment, setting out the terms of their
appointments.
As AFT operates in specialised markets, the Board
believes that it is important to have Directors with
a broad range of experience and skills, gained both
locally and internationally, that are appropriate to
meet its objectives.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 45
GOVERNANCE
Board Capability
The Board has developed (and periodically reviews
and updates) a comprehensive skills matrix to
inform Board succession planning and considers
each Director’s experience against identified
industry specific and broader governance-related
skills. Industry-specific skills identified as being
particularly relevant include:
• global pharmaceutical industry experience;
• pharmaceutical regulatory and ethics experience;
• research and development product development
for drugs and devices;
• commercial operations experience – both
domestic and international; and
• pharmaceutical sales and marketing.
A summary of the board’s assessment of its
aggregate capability against these criteria is set out
below, with an assessment of 100% representing
very high Board capability. The Board arrived at
these assessments by calculating the aggregate
scores of the three most highly skilled Directors in
each of these domains.
This approach recognises that a diversity of skills is
important to delivering best practice governance
and that it is unrealistic and unnecessary for all
Directors to be highly skilled in each of the relevant
domains. It also balances these considerations
against the need to ensure a diversity of well-
informed perspectives is brought to bear on any
issue brought before the Board.
Board Skills Specific to AFT Pharmaceuticals
Global pharmaceutical industry
Pharmaceutical regulatory and ethics
Pharmaceutical manufacturing & quality
R&D product development - drugs
R&D product development - device
Sales & marketing
Operations - domestic
Operations - international
People
Public company director experience/governance
Business building / entrepreneurship
Legal and regulatory
Executive leadership and strategy
Risk and compliance
Capital management
Environmental and Social (inc Climate)
Digital health / AI
Generic Board Skills
Board capability
Board capability
0% 20% 40% 60% 80% 100%
0% 20% 40% 60% 80% 100%
WORKING TO IMPROVE YOUR HEALTH | 46
GOVERNANCE
0% 20% 40% 60% 80% 100%
0% 20% 40% 60% 80% 100%
Board Appointment, Training,
And Evaluation
(Recommendation 2.6, 2.7)
The procedure for the appointment and removal of
Directors is ultimately governed by the Company’s
Constitution and relevant NZX Listing Rules.
A person may be appointed as a Director by
the Board or by appointment at a meeting of
shareholders.
A Director appointed by the Board must not hold
office (without standing for re-election) past the
next Annual Shareholders Meeting following their
appointment. Directors are otherwise subject to the
rotation requirements set out in the NZX Listing
Rules.
At the end of AFT’s Annual Shareholders Meeting
on 2 August 2024, Anita Baldauf retired from the
Board. She was replaced by Allison Yorston on
12 November 2024. Additionally, in accordance
with the rotation requirements of the NZX Listing
Rules, Independent Directors David Flacks and
Dr Ted Witek were re-elected to the Board at the
2024 Annual Shareholders Meeting. Independent
Director Andrew Lane, who was appointed to the
Board in September 2023, was also elected to the
Board at the meeting.
At the time of appointment, each Director receives
a copy of AFT’s Corporate Governance Manual
(comprising all AFT’s core governance documents)
and is introduced to the business through a tailored
induction programme.
All Directors are regularly updated on relevant
industry and Company issues and undertake
training to remain current on how to best perform
their duties as Directors of AFT.
During the Board’s annual evaluation process,
training needs are considered to assist Directors
to remain upskilled on the business and industry
and legislative developments. All Directors have
access to Senior Management to discuss issues or
obtain information on specific areas or items to be
considered at a Board meeting or other areas they
consider appropriate.
The Board, Board Committees and each Director
have the right to seek Independent professional
advice at AFT’s expense to assist them in carrying
out their responsibilities. During the financial year
ended 31 March 2025, the Board undertook a
review of its own and its committees’ composition
and performance to ensure they are effectively
governing AFT and monitoring AFT’s performance
in the interests of shareholders.
Independence Of Directors
(Recommendation 2.4, 2.8, 2.9, 2.10)
A majority of AFT’s Directors are Independent.
The factors the Company takes into account when
assessing the independence of its Directors are set
out in the NZX Code and the Board Charter and
include factors such as the Director’s professional
and personal relationships with the Company and
its subsidiaries and the Director’s length of tenure
as applicable.
Generally, a Director is considered to be Independent
if that Director is not an employee of AFT and does
not have any direct or indirect interest, position,
association, tenure, or relationship that could
reasonably influence, or be perceived to influence, in
a material way, the Director’s capacity to:
• bring an independent view to decisions in
relation to AFT;
• act in AFT’s best interests; and
• represent the interests of AFT’s shareholders
generally.
The Board has determined, based on information
provided by Directors regarding their interests
and the criteria specified in the Board Charter, and
for the purposes of the NZX listing rules that at 31
March 2025 (and the date of this Annual Report),
each of David Flacks, Allison Yorston, Andrew
Lane, and Dr Ted Witek is an Independent Director.
None of the criteria, as set out in table 2.4 of the NZX
Corporate Governance Code that may cause a Board
to determine that a Director is not Independent
applied to any of these Independent Directors.
The Board has also determined that Hartley Atkinson
and Marree Atkinson are not Independent Directors
owing to also being executives of the Company; and,
in Hartley Atkinson’s case, he is also a trustee of a
substantial product holder of the Company, and each
of Hartley and Marree is a discretionary beneficiary of
that substantial product holder.
The Board will review any determination it makes
on a Director’s independence on becoming aware
of any new information that may affect that
Director’s independence.
For this purpose, Directors are required to
ensure they immediately advise AFT of any new
or changed relationship that may affect their
independence or result in a conflict of interest.
The Board supports the separation of the role of
Chairman and Chief Executive Officer. The current
Chairman has been elected by the Board from the
Independent Directors, in accordance with the
terms of the Board Charter. The Chairman’s role
is to manage and provide leadership to the Board
and to facilitate the Board’s interface with the
Chief Executive Officer.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 47
GOVERNANCE
Conflicts Of Interest
The Board is conscious of its obligations to ensure
that Directors avoid conflicts of interest (both real
and perceived) between their duty to AFT
and their own interests. The Board Charter and
the Conflicts of Interest Policy outline the Board’s
policy on conflicts of interest. AFT maintains an
Interests’ Register in which relevant disclosures
of interest and securities dealings by the Directors
are recorded.
Directors’ interest disclosures are carried in the
Statutory Information Section on pages 97 to 100
of this report.
Company Secretary
The Company Secretary, Malcolm Tubby, is
responsible for supporting the effectiveness of the
Board by ensuring that its policies and procedures
are followed and for coordinating the completion
and dispatch of the Board agendas and papers.
The Company Secretary is accountable to the Board,
via the Chair, on all governance matters.
Diversity And Inclusion
(Recommendation 2.5)
The Board recognises that building diversity across
AFT will deliver enhanced business performance.
AFT has adopted a Diversity and Inclusion Policy
and is committed to achieving diversity in the skills,
attributes and experience of its Board members,
management, and staff across a broad range
of criteria (including, but not limited to, culture,
gender, and age).
AFT is proud to have a workforce consisting
of many individuals with diverse skills, values,
backgrounds, ages, genders, and ethnicities, and
experiences. The Company works to ensure that its
selection processes for recruitment and employee
development opportunities are free from bias and
are based on merit.
The Board as a whole is responsible for overseeing
and implementing the Diversity and Inclusion
Policy but has delegated to the Remuneration and
Nominations Committee the responsibility to develop
and to recommend measurable objectives to the
Board that are designed to adhere to the Policy.
AFT’s Diversity and Inclusion Policy is implemented
by promoting the following principles:
• reviewing progress against measurable diversity
objectives and initiatives developed by AFT to
deliver outcomes consistent with the Policy;
• promoting a working environment free from
discrimination, harassment, and victimisation;
• emphasising the accountability of AFT’s leaders
to cultivate a culture of inclusion in which the
strengths of every individual are recognised and
valued;
• raising employee awareness of workplace
diversity by designing, delivering, and measuring
the effectiveness of programmes that promote
workforce diversity, inclusion, and gender equity;
• striving to ensure that all employees and
contractors receive equal and fair treatment in all
aspects of the Company’s employment policies
and practices;
• promoting a culture that empowers employees
to act in accordance with the Policy; and
• regularly benchmarking AFT’s diversity
standpoint, status, and objectives against
appropriate external comparators.
The Board has conducted its annual assessment of
its diversity objectives and the Company’s progress
towards achieving these objectives in respect of
the financial year ended 31 March 2025.
The steps AFT took during the year to develop
and maintain a diverse and inclusive working
environment and fair remuneration, including
gender pay gap reporting, are detailed on page
29 of this report. In accordance with the NZX
listing rules it also lists on those pages the gender
composition of the Directors and Officers at
balance date alongside the gender composition of
its workforce.
In the year ahead (the financial year ending
31 March 2026) the Company will continue to
monitor and benchmark against the diversity and
inclusion objectives agreed by the Board for the
financial year ended 31 March 2026.
WORKING TO IMPROVE YOUR HEALTH | 48
GOVERNANCE
PRINCIPLE 3:
Board Committees
“The Board should use committees where this will enhance its
effectiveness in key areas, while still retaining Board responsibility.”
The Board uses committees to deal with issues
requiring detailed consideration, thereby enhancing
the efficiency and effectiveness of the Board.
However, the Board retains ultimate responsibility
for the functions of its committees and determines
each committee’s roles and responsibilities.
The current committees of the Board are:
• Audit and Risk Committee;
• Remuneration and Nominations Committee; and
• Regulatory and Product Development Oversight
Committee.
Details of the roles and responsibilities of these
committees are described in their respective
charters and summarised below. The committee
charters are available in the Investor Centre on the
Company’s website.
From time to time the Board may constitute an
ad-hoc committee to deal with a particular
issue that requires specialised knowledge and
experience. Proceedings of each committee
meeting are reported back to the Board to allow
other Directors to question committee members
and to keep apprised on matters being considered
by each committee.
Audit And Risk Committee
(Recommendation 3.1, 3.2)
The primary function of the Audit and Risk
Committee is to assist the Board in fulfilling its
oversight responsibilities relating to the Company’s
risk management and internal control framework,
the integrity of its financial and non-financial
reporting (including reports on sustainability,
corporate social responsibility, and environmental
activities) and the Company’s auditing processes
and activities.
Under the Audit and Risk Committee Charter, the
Committee must be comprised of a minimum of
three members. All members of the Committee
must be Non-Executive Independent Directors. At
least one Independent Non-Executive Director
on the Committee must have an accounting or
financial background. Further, the Chairman of the
Committee is required to be Independent and not
be the Chairman of the Board.
Employees are not permitted to attend meetings of
the Audit and Risk Committee without an invitation.
The Chairman of the Committee should not have a
long-standing association with AFT’s external audit
firm as a current, or retired, audit partner or senior
manager at the firm.
The current members of the Committee are Andrew
Lane (Chairman), David Flacks and Allison Yorston.
All members are Independent, Non-Executive
Director. Andrew Lane is considered to have a
financial background for the purposes of the NZX
Listing Rules.
The Audit and Risk Committee held four formal
Committee meetings during the financial year
ended 31 March 2025
Remuneration And Nominations Committee
(Recommendation 3.3, 3.4)
The Remuneration and Nominations Committee’s
role is to oversee remuneration policies and
practices at AFT, oversee management succession
planning, consider the composition of the Board,
and recommend candidates to fill Board vacancies
as and when they arise.
The Committee is also tasked with annually
monitoring and evaluating the Company’s
performance with respect to its Diversity and
Inclusion Policy.
Under the Remuneration and Nominations
Committee Charter, the Committee must be
comprised of a minimum of three members,
a majority of whom are Independent Directors.
Management of the Company are not permitted
to attend the Remuneration and Nominations
Committee unless invited.
The Chairman of the Committee is required to
be Independent. The current members of the
Committee are Andrew Lane (Chairman), David
Flacks and Ted Witek.
The Remuneration and Nominations Committee
held two meetings during the financial year ended
31 March 2025 and carried out other functions via
circular resolution.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 49
GOVERNANCE
Regulatory And Product Development
Oversight Committee
(Recommendation 3.5)
The Regulatory and Product Development
Oversight Committee’s role is to, at least
bi-annually, review the Company’s regulatory
risk management framework relating to product
development; oversee the Company’s strategy
relating to key clinical and product development
projects and monitor the Company’s compliance
framework against applicable regulations
regarding the sale and distribution
of pharmaceutical products.
Committee members also meet frequently on
an informal basis to discuss regulatory and new
product development matters. The functioning
of the Committee complements the monthly
monitoring undertaken by the Board on the status
of new product development and filings. Under the
Regulatory and Product Development Oversight
Committee Charter, the Committee must be
comprised of a minimum of three members.
The current members of the Committee are
Ted Witek (Chairman), Hartley Atkinson,
and Marree Atkinson.
The Regulatory and Product Development
Oversight Committee met twice during the
financial year ended 31 March 2025.
Board And Committee Attendance
(Recommendation 3.5)
The Board met for ten regularly scheduled
meetings during the financial year ending 31 March
2025. There were also separate meetings of the
Board Committees during the year. In addition, the
Board and management met during the year to
undertake strategic planning.
Director
Board
Audit
and risk committee
Remuneration and
nomination committee
Regulatory and New Product Development
Oversight Committee¹
Dr Hartley Atkinson 10/10--2/2
Marree Atkinson10/10--1/2
David Flacks 10/104/42/2-
Andrew Lane10/104/42/2-
Dr Ted Witek
3
10/102 /42/22/2
Allison Yorston
4
4/100/4--
Anita Baldauf
2
4/101 /4--
1
Committee members also met frequently through-out the year
on an informal basis to discuss regulatory and new product
development matters.
2
Anita Baldauf retired from the Board and the ARC on 2 August
2024. She was replaced on 12 November 2024 on the Board by
Allison Yorston.
3
Ted Witek joined the ARC on 19 Nov 2024 and retired
on 20 March 2025.
4
Alison Yorston joined the ARC on 20 March 2025
Control Transaction Guidelines
(Recommendation 3.6)
AFT’s Independent Directors have received legal
advice on their Directors’ duties, and the process
to be followed, in the event of a takeover offer.
The Board has formally adopted this advice as the
protocols to be applied in the event of a control
transaction Any takeover of AFT shares would
require the support of the Atkinson Family Trust,
which at present holds approximately 69% of the
shares on issue.
WORKING TO IMPROVE YOUR HEALTH | 50
GOVERNANCE
PRINCIPLE 4:
Reporting and Disclosure
“The Board should demand integrity in financial and non-financial reporting,
and in the timeliness and balance of corporate disclosures.”
AFT is committed to the promotion of investor
confidence by ensuring that the trading of
Company shares takes place in an efficient,
competitive, and informed market. The Board is
tasked with ensuring the integrity of financial and
non-financial reporting to shareholders and other
stakeholders.
Market Disclosure Policy
(Recommendation 4.1)
AFT’s Market Disclosure Policy establishes the
Company’s procedures for meeting the continuous
disclosure requirements of both the NZX Main
Board and the ASX. A copy of the Market
Disclosure Policy is available in the Investor Centre
on the Company’s website. In addition to the
procedures set out in that Policy, Directors and
Management consider at each meeting whether
there are any issues that require disclosure to the
market.
Governance Policy Availability
(Recommendation 4.2)
AFT’s governance charters and policies and its
code of ethics can be found in the Investor Centre
on the Company’s website.
Financial And Non-Financial Reporting
(Recommendation 4.3, 4.4)
The Board is responsible for ensuring the integrity
of its financial and non-financial reporting. AFT is
committed to providing shareholders and other
stakeholders with a balanced and, clear, objective,
understandable and easily accessible assessment
of its performance, business model, strategic
objectives, and its progress against them. To
achieve these goals the Company reports a range
of financial and non-financial information at each
results announcement and in its full-year reports.
Reporting Oversight
The Audit and Risk Committee closely monitors
financial and other reporting risks in relation to
the preparation of the financial statements and
accompanying non-financial information.
With the assistance of management, the Audit and
Risk Committee works to ensure that the financial
statements and accompanying non-financial
information are founded on a sound system of
risk management and internal control and that
the system is operating effectively in relation to
financial reporting and other material risks.
As part of this process, the Chief Executive Officer
and Chief Financial Officer are required to state
in writing to the Board that, to the best of their
knowledge, the Company’s financial reports and
accompanying non-financial statements:
• present a true and fair view of the Company’s
financial condition and operational performance;
• are in accordance with the relevant accounting
standards; and
• are founded on a sound system of risk
management and internal controls that are
operating effectively.
The Board receives copies of all material
announcements made to the NZX and ASX.
Non-Financial Environmental Social
And Governance (‘ESG’) Reporting
(Recommendation 4.4)
AFT has incorporated strategies to account for
and manage the ESG factors that are material to
the Company’s ability, and commitment, to create
value long-term. It is also reporting its progress
against those strategies in a way that is aligned
with the Company’s broader reporting standards
and commitments.
The Company has aligned its ESG reporting to the
United Nations Sustainable Development Goals,
which reflect the most urgent global environmental,
political, and economic challenges.
AFT has completed and regularly reviews its
systematic and robust assessment of the ESG
issues that are material to the Company and
continues to evolve the breadth and depth
of measures against which it can assess the
Company’s performance in managing these issues.
The Company has for the second year issued a
climate statement (on pages 102 to 122 of this
report) made in accordance with the new Aotearoa
New Zealand Climate Standards.
These disclosures are overseen by the Board.
Further detail is covered in the sustainability
section (on pages 16 to 34) of this report.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 51
GOVERNANCE
PRINCIPLE 5:
Remuneration
“The remuneration of Directors and executives should be transparent,
fair and reasonable.”
AFT is committed to remunerating its Non-Executive
Directors, Executive Directors, and employees
fairly, transparently, and reasonably. The policies,
procedures and outcomes on these commitments
are detailed in the Company’s Remuneration Report
on page 58 to 62 of this report.
Director Remuneration
And Senior Executive Remuneration
(Recommendations 5.1, 5.2, 5.3)
Please see pages 58 to 62 of this report for Non-
Executive Director and Executive Director and
Senior Executive remuneration governance and the
relevant disclosures.
WORKING TO IMPROVE YOUR HEALTH | 52
GOVERNANCE
PRINCIPLE 6:
Risk Management
“Directors should have a sound understanding of the material risks faced
by the issuer and how to manage them. The Board should regularly verify
that the issuer has appropriate processes that identify and manage
potential and material risks.”
Risk Management Framework
(Recommendation 6.1)
Like other businesses, AFT manages a range
of risks that have the potential to impact its
performance, operations, reputation, and
customers’ safety. While some risks can never
be eliminated, AFT works hard to identify their
significance and manage them.
AFT has designed and implemented a risk
framework for the oversight and management of
financial and non-financial business risks, as well
as related internal compliance systems that are
designed to:
• optimise the return to, and protect the interests
of its stakeholders;
• safeguard the Company’s assets and maintain its
reputation and social licence to operate;
• improve the Company’s financial and operating
performance;
• fulfil the Company’s strategic objectives; and
• manage the risks associated with the sale and
distribution of pharmaceutical products.
The Board has ultimate responsibility for AFT’s risk
management and internal control system, setting
the ‘tone at the top’ with regards to risk culture. It
reviews the risk management framework and risk
register at least twice a year.
The Audit and Risk Committee and Regulatory and
Product Development Oversight Committee, under
delegation from the Board, assists the Board in
discharging its responsibilities.
The Audit and Risk Committee monitors
compliance with the overarching risk and
compliance framework, while the Regulatory
and Product Development Oversight
Committee oversees the Company’s regulatory
risk management framework regarding the
development, quality assurance and sale and
distribution of pharmaceutical products.
The Audit and Risk Committee, in conjunction with
management, regularly reports to the Board on
the effectiveness of the Company’s management
of its material business risks and whether the risk
management framework and systems of internal
compliance and control are operating effectively
and efficiently in all material respects.
The Audit and Risk Committee conducts six-
monthly reviews of AFT’s risk management
framework and principal risks register and
satisfies itself that AFT’s approach to risk is
sound. Information regarding AFT’s internal audit
functions can be found under the section headed
“Internal Audit Function” below.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 53
GOVERNANCE
Principal Risks
(Recommendation 6.2)
AFT’s current principal risks and their mitigations are summarised below. AFT’s risk management framework
has positioned AFT well to respond to the challenges the Company faces. Further detail is included in the
sustainability section of this report on pages 16 to 34
RiskAFT mitigates this risk by:
Regulatory
Approval
Delay or failure
in the
development,
manufacture,
commercialisation,
or regulatory
approval process
for AFT products.
–Adopting a low risk and low-cost development programme.
–Using multiple manufacturing sites for our key products and
maintaining close working relationships with our suppliers.
–Engaging both in-house and external regulatory experts in our key
markets.
–Monitoring regulatory timetables and maintaining regular dialogue
with licensees to anticipate and manage delays proactively. where
necessary.
Competition
Competition of
pharmaceutical
products and
devices.
–Product innovation.
–Diversification of our product portfolio.
–Maintaining a broad range of distribution channels, partners,
and geographies.
Intellectual
Property
Intellectual
Property
infringement
and protection
for AFT products.
–Taking actions to protect our IP, including filing patent applications,
and entry into confidentiality agreements with licensees, suppliers,
and employees to protect trade secrets.
–Undertaking extensive “freedom to operate” reviews before we make
our IP applications to ensure that they do not infringe any other IP
and are protectable.
–Regularly monitoring pharmaceutical patent registrations.
Third Parties
Reliance on third
parties for the
manufacture,
distribution, and
licensing of AFT
products
–Using multiple manufacturers where possible for our key products.
–Operating an inventory policy of holding a minimum of three months’
inventory to minimise interruption of supply.
–Being selective in our choice of distribution and licensing partners
and having performance obligations in our commercial agreements.
–Requiring all suppliers to attest to compliance with our Supplier
Code of Conduct and our Modern Slavery Policy, which together
require third party suppliers to foster and encourage respect for
Human & Labour Rights, Ethical Business Practices, Environmental
Responsibility, Product and Service Quality and Safety. The policy
and the code also require suppliers to report on any ethical sourcing
risks, including Modern Slavery risks, in their supply chains.
Product Liability
Product liability
and risks
associated with
marketing drugs
and conducting
clinical trials.
–Adopting compliance and regulatory systems to monitor our
compliance with applicable laws and regulations.
–Manufacturing products in compliance with Good Manufacturing
Practice and other relevant regulatory requirements, including
supplying products for use only with approved Certificates of Analysis.
–Maintaining and regularly reviewing a register of known adverse events.
–Focusing on novel dose forms, combinations, and delivery systems of
approved drugs, meaning clinical trial risks are relatively low.
–Contracting out clinical trials to specialists.
–Implementing a comprehensive product, clinical trial, and
contamination insurance programme.
–Ensuring that product labelling declares reported risks and ensuring
that adverse events are incorporated in the product package insert,
in accordance with licensors’ advice, and local regulatory accepted
rules and labels.
WORKING TO IMPROVE YOUR HEALTH | 54
GOVERNANCE
RiskAFT mitigates this risk by:
Growth Strategy
Failure to execute
growth strategy.
–Adopting expansion strategies that are scalable and are not
capital intensive, for example using out-licensing and distributor
arrangements in markets where the company has not elected to
maintain a presence.
–Closely monitoring our personnel, internal company structures and
systems to ensure they remain appropriate to support our growth
plans.
–Regular review and close monitoring of progress of growth strategies
against business plans and targets.
Capital
Management
–Closely monitoring forecasts, cash flows and our financial covenants
to ensure they are not breached.
–Actively monitoring key revenue growth plans.
–Managing the mix of equity capital and borrowings.
–Maintaining an active investor relations program should a further
equity raise be considered.
Key
Personnel
Loss
–Succession planning and promoting a culture of diversity and inclusion.
–Adopting a competitive remuneration policy designed to assist us in
retaining key personnel.
–Carefully selecting our personnel to ensure that they fit with our culture
and growth plans.
Health
and Safety
Risks
–Adopting a Health and Safety Policy and monitoring performance
against it. The Board and management are committed to promoting
a safe and healthy working environment for everyone working in/or
interacting with AFT’s business. The Health and Safety Policy requires
AFT people to endeavour to take all practicable steps to provide
a working environment that promotes health and wellbeing, while
minimising the potential for risk, personal injury, ill health, or damage.
–Agreeing a detailed (Board-approved) programme of work, which aims
to ensure AFT remains compliant with its health and safety obligations.
The Board is updated on health and safety (including wellness) matters
and metrics at each Board meeting and there is a detailed review on
health and safety risks each quarter.
–Operating an employee-led Health and Safety Committee.
The committee meets regularly to monitor and manage health and
safety risks, including hazards, within the business, and inform Board
reporting. Further detail on the Company’s management of health and
safety risks is covered on page 31 of this report.
Cyber Risk
–Maintaining robust systems and processes to support our information
and communication technology (ICT) system security.
–Commissioning regular independent reviews of our ICT systems.
–Maintaining and regularly reviewing business continuity and disaster
recovery plans and systems.
–Promoting a culture of cybersecurity in the organisation through
regular training; and communication.
Climate
Change
Risk
–Embedding oversight and management of climate related risks within
the Board Charter and the incorporation of programmes to manage
these risks into the Company’s strategy.
–Transparently reporting its approach and strategies to identify monitor
and manage climate related risks and opportunities.
–Further detail is covered in the climate statement on pages 102 to 122
of this report.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 55
GOVERNANCE
PRINCIPLE 7:
Auditors
“The Board should ensure the quality and independence of the external
audit process.”
External Auditor Independence
(Recommendation 7.1)
AFT has adopted an Audit Independence Policy
that requires, and sets out the criteria for, the
external auditors to be independent. The Policy
recognises the importance of facilitating frank
dialogue between the Audit and Risk Committee,
the auditor and management.
The Policy prescribes the services that can and
cannot be undertaken by the external auditors,
which are designed to ensure that services
provided by AFT’s external auditors do not conflict,
and are not perceived as conflicting, with their
independent role.
The Policy also requires that the key audit partner
be changed at least every five years so that no
person shall be engaged in an audit of AFT for
more than five consecutive years. AFT engaged a
new audit firm in February 2018 and in accordance
with this Policy and in accordance with NZX Listing
Rule 2.13.3 rotated to a new audit partner for the
year to 31 March 2023.
The Audit and Risk Committee Charter requires
the Committee to facilitate the continuing
independence of the external auditor by assessing
the external auditor’s independence and
qualifications and overseeing and monitoring its
performance. This involves monitoring all aspects
of the external audit, including the appointment of
the auditor, the nature and scope of its audit, and
reviewing the auditor’s service delivery plan.
In carrying out these responsibilities the Audit and
Risk Committee meets regularly with the auditor
without Executive Directors or management present.
The auditor is restricted in the non-audit work it may
perform, as detailed in the Auditor Independence
Policy. In the last financial year, the audit firm has
undertaken specific non-audit work. Details of this
work are covered on page 79 of this report.
None of that non-audit work is considered to have
compromised (or been seen to have compromised)
the independence of the auditor. For further details
on the audit and non-audit fees paid and work
undertaken during the period, refer to page 79
in the Financial Statements of this report.
The Audit and Risk Committee regularly monitors
the ratio of fees for audit to non-audit work.
Internal Audit Function
(Recommendation 7.3)
AFT does not have a dedicated internal auditor.
Instead, internal controls are managed on a day-
to-day basis by the finance team. Compliance with
internal controls is reviewed annually by AFT’s
auditors who provide feedback on AFT’s control
environment, which is reviewed by the finance
team and Board.
The Board and finance team regularly consider
how AFT can improve its internal audit and risk
management practices during AFT’s annual
governance review, bi-annual risk reviews,
preparation of interim and full-year financial
statements and following AFT’s annual audit.
WORKING TO IMPROVE YOUR HEALTH | 56
GOVERNANCE
PRINCIPLE 8:
Shareholder Rights and Relations
“The Board should respect the rights of shareholders and foster
constructive relationships with shareholders that encourage them
to engage with the issuer.”
Information For Shareholders
(Recommendation 8.1, 8.2)
AFT is committed to maintaining a full and open
dialogue with its shareholders (and other interested
stakeholders). The Company has in place an
investor relations programme to facilitate effective
two-way communication with shareholders.
The aim of the Company’s communication
programme is to ensure fair recognition of the
value the company creates, provide stakeholders
with information to help them accurately assess
the company’s performance and prospects. It also
seeks to enable shareholders to actively engage
with the Company and exercise their rights in an
informed manner.
The Company facilitates communication with
shareholders through written and electronic
communication, and by facilitating shareholder
access to Directors, Management, and the
Company’s auditors.
The Company provides shareholders with
communication through the following channels:
• the Investor Centre on the Company’s website;
• full-year and half-year results and/or reports;
• the Annual Shareholders Meeting;
• regular disclosures on Company performance
and news via the NZX and ASX online disclosure
platforms;
• disclosure of presentations provided to analysts,
investors, and the media during regular briefings;
and
• engagement with media and social media.
The Company’s website is an important part
of the Company’s communication programme.
Included on the website is a range of information
relevant to shareholders and others concerning
the financial position, operation, and governance
of the Company, including information about
the Company and its history, biographies of the
Company’s Directors and senior management, the
Company’s Constitution, Board Charter (and the
charters of the various committees) and other
corporate governance policies of the Company.
Shareholders may, at any time, direct questions,
or requests for information to Directors or
management through the Company’s website
or by sending an email to:
investor.relations@aftpharm.com
The Company provides shareholders with the
option to receive communications from, and
send communications to, the Company and its
share registrar electronically. A majority of AFT’s
shareholders have elected to receive electronic
communications.
Shareholder Voting Rights
(Recommendation 8.3)
In accordance with the Companies Act 1993, AFT’s
Constitution and the NZX Listing Rules, AFT refers
major decisions which may change the nature of
AFT to shareholders for approval.
In the financial year ended 31 March 2025, there
were no such transactions requiring shareholders’
approval under the Companies Act 1993, AFT’s
Constitution and/or the NZX Listing Rules.
As required by the NZX Listing Rules, AFT
conducts voting at its shareholder meetings by way
of polls, reflecting the principle of one share, one
vote. Further information on shareholder voting
rights is set out in AFT’s Constitution.
Annual Shareholders Meeting
(Recommendation 7.2, 8.2, 8.5)
AFT’s 2025 Annual Shareholders Meeting is
currently intended to be held in early August
2025. Shareholders will be given an opportunity to
participate, vote and ask questions and comment.
In addition, the Company’s auditors, Deloitte, will
be available to answer any questions about their
audit report. A Notice of Meeting will be posted
on AFT’s website as soon as possible and will be
posted to shareholders at least 20 working days
prior to the meeting.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 57
GOVERNANCE
REMUNERATION
WORKING TO IMPROVE YOUR HEALTH | 58
REMUNERATION
Remuneration
AFT Pharmaceuticals remuneration policies are
targeted at supporting the company to attract,
retain and motivate high calibre people to achieve
AFT Pharmaceuticals’ business objectives and
create shareholder value. They are guided by the
principles that remuneration practices should:
• be clearly aligned with AFT Pharmaceuticals’
values, culture, risk appetite and corporate
strategy;
• support the attraction, retention, and
engagement of employees;
• be understood by employees;
• be equitable and flexible;
• appropriately reflect market conditions and
organisational context;
• recognise individual performance and
competency, rewarding individuals for achieving
high performance; and
• recognise team and company performance and
the creation of shareholder value
Remuneration Governance
AFT’s policies regarding the remuneration of
Directors and its people are set out in the Board
Charter and the company’s Remuneration Policy,
both of which are available on the Investor
Centre on the company’s website. There have
been no changes to the Company’s approach to
remuneration during the period.
As detailed in the Board Committee Section (page
49 of this report), the governance arrangements
relating to remuneration are overseen by the
Board’s Remuneration and Nominations Committee.
Director Remuneration
Non-Executive Director Remuneration
The current maximum total monetary sum
permitted to be paid by the Company by way of
Non-Executive Directors’ fees is $575,000 per
annum. This sum has not been increased since it
was approved by shareholders in 2015.
Non-Executive Directors’ fees were last reviewed
and increased at the May 2024 Board meeting and
are detailed in the table below.
Committee fees were held steady at that meeting
and are payable to Non-Executive Directors,
as detailed in the table below. Non-Executive
Directors’ fees are still within the $575,000 per
annum limit noted above.
Directors may hold shares in the Company, the
details of which are set out in the Statutory
Information section on pages 97 to 100 of this
report. It is the Company’s policy to encourage
Directors to hold shares in the Company.
The Non-Executive Directors are entitled
to be reimbursed for all reasonable travel,
accommodation and other expenses incurred by
them in connection with their attendance at Board
or shareholder meetings or otherwise in connection
with AFT’s business. No retirement allowances
will be paid to the Non-Executive Directors
on their retirement.
The current approved fixed annual fees payable
to Non-Executive Directors are detailed in the
table below.
Governance bodyPositionFees per annum
Period to the March FY2025
1
FY2024
Board of Directors Chair$150,000$142,000
Director$80,000
2
$77,000
Audit and Risk Committee Committee Chair$20,000
3
$20,000
Committee Member $6,000
3
$6,000
Remuneration and Nominations Committee Committee Chair$7,500$7,500
Committee Member $6,000
3
$6,000
Regulatory and Product Development
Oversight Committee
Committee Chair$15,000
4
$15,000
Committee Member $6,000$5,000
1
All fees are paid in NZD unless stated.
2
Fee payable to non-United States (US) based Directors. US-based Directors receive USD$80,000.
3
Fee payable to non-US based Directors. US based Directors receive USD$6,000.
4
Fee payable to non-US based Directors. US based Directors receive USD$15,000.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 59
REMUNERATION
Non-Executive Directors received the following Directors’ fees, remuneration and other benefits from the
Company in the financial year ended 31 March 2025:
Non-Executive Director
David
Flacks
Dr Ted
Witek
2
Andrew
Lane
Allison
Yorston
3
Anita
Baldauf
4
Non-Executive Director Board fees $150,000$134,943$80,000$30,521$26,667
Audit and Risk Committee fees$6,000$4,200$20,000181$2,000
Remuneration and Nomination
Committee fees$6,000$10,120$7,500––
Regulatory and Product Development
Oversight Committee fees –$25,301–––
Shares and other payments or benefits
1
–––––
Total remuneration
1
$162,000$174,564$107,500$30,701$28,667
1
In addition to Directors’ fees, AFT meets costs incurred by Non-Executive Directors that are incidental to the performance of their duties.
This includes paying the costs of Directors’ travel. As these costs are incurred by AFT to enable Directors to perform their duties,
no value is attributable to them as benefits to Directors for the purposes of this table.
2
Fees disclosed in NZD. Ted Witek receives fees paid in USD. These fees have been converted into NZD in the above table, calculated at an
weighted average exchange rate of 1 : 0.5928. Ted Witek joined as an ARC member on 19 November 2024 and retired on 20 March 2025.
3
Allison Yorston joined the Board on 12 November 2024 and joined the Audit and Risk Committee on 20 March 2025.
4
Anitia Baldauf retired from the Board on 2 August 2024
Executive Director Remuneration
The remuneration of the Executive Directors –
Managing Director and Chief Executive Hartley
Atkinson and Executive Director and Chief of
Staff Marree Atkinson – is covered in the ‘Senior
Executive Remuneration’ section below.
Senior Executive Remuneration
Remuneration Policy
AFT has adopted a formal Remuneration Policy, the
purpose of which is to outline the remuneration
principles that apply to all employees to ensure
that remuneration practices within AFT are fair and
appropriate for the organisation and its Directors
and employees.
AFT’s Remuneration Policy supports the Company
to attract, retain and motivate high-calibre people
to achieve the Company’s business objectives and
create shareholder value. The Remuneration Policy
is available in the Investor Centre on the Company’s
website.
Under AFT’s remuneration framework,
remuneration paid to the Chief Executive Officer
and Senior Officers includes a mix of the following
fixed and variable components:
• Fixed remuneration, which includes base salary
and employer KiwiSaver (or overseas equivalent)
contributions (where relevant) and relates to the
base requirements of the role.
• A discretionary Short-Term Incentive (STI) may
be offered to some employees, at the discretion
of the CEO (or be offered to the CEO and/or
Chief of Staff, at the discretion of the Board).
AFT’s short-term incentive is performance
based, with any short-term incentive plan
payment being conditional on satisfaction
of pre-determined Company and individual
performance objectives.
• Potential short-term incentive payments are
generally between 10% to 30% of base salary,
depending on seniority and role, and this
increases to 75% for the Chief Executive Officer.
• A Long-Term Incentive (LTI) Plan may be
offered, generally only to permanent senior
management, as approved by the Board. AFT
currently operates an option scheme. This is
designed to attract and retain senior managers
within the business and to align the interests of
management with shareholder interests.
Under the LTI Plan, participants are granted options
to acquire ordinary shares in AFT. One option will
give the participant the right to subscribe for (or
otherwise purchase) one ordinary share, subject to
meeting any vesting conditions set by the Board
and payment of the exercise price. The Board
has an absolute discretion to invite employees to
participate in the LTI Plan and to set the terms and
conditions of options at the time they are granted.
WORKING TO IMPROVE YOUR HEALTH | 60
REMUNERATION
The maximum aggregate number of options that
may be granted under the LTI Plan is 5% of the
total number of ordinary AFT shares on issue
immediately after the issue of options, unless
shareholder approval is obtained. With respect
to AFT’s LTI Plan, no Director or employee is
permitted to enter into financial products or
arrangements that operate to limit the economic
risk of their vested or unvested entitlements.
In addition, AFT may offer provisions that have
a monetary benefit to employees but are not
considered part of remuneration.
Each year an internal review against our public
company peers is carried out to benchmark salaries
with market increases and adjustments made
accordingly.
The Remuneration and Nominations Committee is
responsible for reviewing the remuneration of the
Company’s senior executives in consultation with
the CEO. The Company’s senior executives are
subject to regular performance reviews.
The performance of senior executives is reviewed
by the CEO who meets with each senior executive
to discuss their performance, as measured against
key performance targets (both financial and non-
financial) previously established and agreed with
that executive.
During the financial year ended 31 March 2025,
performance reviews took place in accordance
with this process.
Chief Executive And
Chief Of Staff Remuneration
The Executive Directors, Hartley Atkinson and
Marree Atkinson, receive remuneration and other
benefits in their respective executive roles as CEO
and Chief of Staff and, accordingly, do not receive
Directors’ fees.
Their remuneration packages are set by the Board
to reflect the scope and complexity of each role,
with reference to comparative market data. The
executive Directors’ performance is reviewed by
the Board annually. During the financial year ended
31 March 2025, performance reviews took place
in accordance with that process. No termination
payments are payable to the Executive Directors in
the event of serious misconduct.
During the financial year ended 31 March
2025, Hartley Atkinson, and Marree Atkinson’s
remuneration both comprised a fixed cash
component and an at-risk short-term incentive.
The breakdown of the short-term incentive and
the performance hurdles required to achieve them
are set out below. Neither Executive Director was
issued any form of long-term incentive during the
financial period.
The table below sets out the total remuneration
and value of other benefits earned by, or paid
to, each Executive Director of AFT during, and in
respect of, the financial years ended 31 March:
Base salaryTaxable benefits
Short-term
incentive¹
Long-term
incentive²Total remuneration
FY2025FY2024FY2025FY2024FY2025FY2024FY2025FY2024FY2025FY2024
Dr Hartley Atkinson
$730,300$670,000––$340,695$304,785––$1,070,995$974,785
Maree Atkinson
$260,000$161,250––$12,094$10,920––$272,094$175,438
1
The short-term incentives (STI) paid in each year was earned in the prior year and paid in the year stated. The short-term incentive for the
FY2025 year has not been finalised.
2
Neither Executive Director was issued any form of long-term incentive during the financial period.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 61
REMUNERATION
Executive Director remuneration, including short-
term performance incentives, is set with reference
to the company’s strategic objectives and the
factors material to delivering on those objectives.
For Hartley Atkinson these objectives include
company revenue and profit targets; key innovative
product development; and key product registration
and licensing. For Maree Atkinson these objectives
include company revenue and profit targets; human
resources objectives; and overhead cost savings.
Employee Remuneration
The table below sets out the number of employees
or former employees of AFT and its subsidiaries, not
being Directors of AFT, who, in their capacity as
employees received remuneration and other benefits
during the financial year ended 31 March 2025 totalling
at least $100,000 per annum. The remuneration of
those employees paid outside of New Zealand has
been converted into New Zealand dollars.
The table includes base salaries and short-term
incentives paid during the financial year ended
31 March 2025 and long-term incentives vested
or exercised during the financial year ended 31
March 2025. The table does not include long-term
incentives that have been granted, but which have
not yet been vested.
Where the individual is a KiwiSaver member,
contributions of 3% of gross earnings towards
that individual’s KiwiSaver scheme are included in
the table. Where the individual works in Australia,
contributions of 9.5% of gross earnings towards
Australian Superannuation are included in the table.
Remuneration range (NZD)
Total number
of employees
100000 - 110000 24
110001 - 120000 11
120001 - 130000 9
130001 - 140000 9
140001 - 150000 5
160001 - 170000 1
170001 - 180000 4
180001 - 190000 1
190001 - 200000 1
210001 - 220000 2
220001 - 230000 2
240001 - 250000 1
260001 - 270000 2
280001 - 290000 1
320001 - 330000 1
390001 - 400000 1
490001 - 500000 1
Total employees and former
employees earning more
than $100k76
Employee Long-Term Incentive Scheme
At 30 April 2025 AFT had issued 164,000 options
with an exercise price of $3.46 as part of the
company’s Long-Term Incentive scheme (LTI).
Certain of the options vest (and therefore become
available for exercise) over one or more minimum
vesting periods, the details of which are particular
to each option holder (during which time the option
holder must remain employed by the Company).
Vesting of some of the options is also conditional
on one or more performance hurdles, specific to
the option holder. However key objectives include
meeting their budget for the financial year and
being employed by the company and the CEO’s
assessment of a person’s overall performance.
The Options have a final exercise date of the date
four years and two months from the Grant Date
of the options.
WORKING TO IMPROVE YOUR HEALTH | 62
AFT Pharmaceuticals Limited
CONSOLIDATED
FINANCIAL
STATEMENTS
For The Year Ended 31 March 2025
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 63
Independent Auditor’s Report
To The Shareholders Of AFT Pharmaceuticals Limited
Opinion
We have audited the consolidated financial statements of AFT Pharmaceuticals Limited and
its subsidiaries (the ‘Group’), which comprise the consolidated balance sheet as at 31 March
2025, and the consolidated income statement, consolidated statement of comprehensive
income, consolidated statement of changes in equity and consolidated statement of cash
flows for the year then ended, and notes to the consolidated financial statements, including
material accounting policy information.
In our opinion, the accompanying consolidated financial statements, on pages 67 to 96,
present fairly, in all material respects, the consolidated financial position of the Group as at
31 March 2025, and its consolidated financial performance and cash flows for the year then
ended in accordance with New Zealand Equivalents to IFRS Accounting Standards (‘NZ
IFRS’) as issued by the External Reporting Board and IFRS Accounting Standards (‘IFRS’) as
issued by the International Accounting Standards Board.
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (‘ISAs’)
and International Standards on Auditing (New Zealand) (‘ISAs (NZ)’). Our responsibilities
under those standards are further described in the Auditor’s Responsibilities for the Audit of
the Consolidated Financial Statements section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to
provide a basis for our opinion.
We are independent of the Group in accordance with Professional and Ethical Standard 1
International Code of Ethics for Assurance Practitioners (including International
Independence Standards) (New Zealand) issued by the New Zealand Auditing and
Assurance Standards Board and the International Ethics Standards Board for Accountants’
International Code of Ethics for Professional Accountants (including International
Independence Standards), and we have fulfilled our other ethical responsibilities in
accordance with these requirements.
Other than in our capacity as auditor, we have no relationship with or interests in the entity.
Audit materiality
We consider materiality primarily in terms of the magnitude of misstatement in the financial
statements of the Group that in our judgement would make it probable that the economic
decisions of a reasonably knowledgeable person would be changed or influenced (the
‘quantitative’ materiality). In addition, we also assess whether other matters that come to
our attention during the audit would in our judgement change or influence the decisions of
such a person (the ‘qualitative’ materiality). We use materiality both in planning the scope
of our audit work and in evaluating the results of our work.
We determined materiality for the Group financial statements as a whole to be $2 million.
WORKING TO IMPROVE YOUR HEALTH | 64
INDEPENDENT AUDITOR’S REPORT
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most
significance in our audit of the consolidated financial statements of the current period.
These matters were addressed in the context of our audit of the consolidated financial
statements as a whole, and in forming our opinion thereon, and we do not provide a
separate opinion on these matters.
Key audit matterHow our audit addressed the key audit matter
Revenue recognition – Rebate accrual
Revenue is recognised net of volume
discounts, other rebates and various
other payments to customers for
promotional support. Volume discounts
and rebates not invoiced at reporting
date are estimated based on various
arrangements with customers and
estimated depletions during the period.
High levels of judgement are required
at year end to estimate the accrual for
rebates.
As disclosed in note 4 and 9, the value
of outstanding rebates as at 31 March
2025 was $10,414k (2024: $11,258k).
The rebate accrual is a key audit matter
due to increasing sales volumes and the
high levels of judgement involved in the
calculation of the outstanding rebate
accrual. Management must estimate the
mix of sales that will ultimately be made
to each end user in order to calculate
the rebate accrual as well as the time lag
between the sale of the product and its
respective rebate claim.
In performing our procedures, we:
• Held discussions with management to
update our understanding of the various
arrangements with customers in place and
the process for estimating the rebates;
• Understood the relevant controls over the
accrual and associated revenue recognition;
• Obtained management’s calculation of the
outstanding rebates at balance date and
checked the calculation for mathematical
accuracy;
• Evaluated key judgements and assumptions
including considering actual historical sales
and claims history by product; and
• Developed an independent expectation
of the accrual balance, and compared it
to the accrual recorded to evaluate the
appropriateness of the year end accrual
position.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 65
INDEPENDENT AUDITOR’S REPORT
Other information
The directors are responsible on behalf of the Group for the other information.
The other information comprises the information in the Annual Report that accompanies
the consolidated financial statements and the audit report.
Our opinion on the consolidated financial statements does not cover the other information
and we do not express any form of assurance conclusion thereon.
Our responsibility is to read the other information and consider whether it is materially
inconsistent with the consolidated financial statements or our knowledge obtained in the
audit or otherwise appears to be materially misstated. If so, we are required to report that
fact. We have nothing to report in this regard.
Directors’ responsibilities for the consolidated financial statements
The directors are responsible on behalf of the Group for the preparation and fair
presentation of the consolidated financial statements in accordance with NZ IFRS and
IFRS, and for such internal control as the directors determine is necessary to enable the
preparation of consolidated financial statements that are free from material misstatement,
whether due to fraud or error.
In preparing the consolidated financial statements, the directors are responsible on behalf
of the Group for assessing the Group’s ability to continue as a going concern, disclosing,
as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Group or to cease operations,
or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the consolidated financial statements
Our objectives are to obtain reasonable assurance about whether the consolidated financial
statements as a whole are free from material misstatement, whether due to fraud or error,
and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high
level of assurance, but is not a guarantee that an audit conducted in accordance with ISAs
and ISAs (NZ) will always detect a material misstatement when it exists. Misstatements can
arise from fraud or error and are considered material if, individually or in the aggregate,
they could reasonably be expected to influence the economic decisions of users taken
on the basis of these consolidated financial statements.
A further description of our responsibilities for the audit of the consolidated financial
statements is located on the External Reporting Board’s website at:
https://www.xrb.govt.nz/standards/assurance-standards/auditors-responsibilities/audit-
report-1-1/
This description forms part of our auditor’s report.
Restriction on use
This report is made solely to the Company’s shareholders, as a body. Our audit has been
undertaken so that we might state to the Company’s shareholders those matters we are
required to state to them in an auditor’s report and for no other purpose. To the fullest
extent permitted by law, we do not accept or assume responsibility to anyone other
than the Company’s shareholders as a body, for our audit work, for this report, or for the
opinions we have formed.
Bryce Henderson, Partner
for Deloitte Limited
Auckland, New Zealand
22 May 2025
WORKING TO IMPROVE YOUR HEALTH | 66
INDEPENDENT AUDITOR’S REPORT
Consolidated Income Statement
For the Year Ended 31 March 2025
Note
2025
$’000
2024
$’000
Revenue 4208,021195,411
Cost of sales(116,308)(107,139)
Gross profit91,71388,272
Other Income753528
Selling and distribution expenses(51,095)(45,256)
General and administrative expenses(12,228)(11,215)
Research and development expenses(11,495)(8,094)
Operating profit17,64824,235
Finance income2566
Interest costs7(2,821)(3,686)
Other finance gain / (loss)71,1821,404
Profit before tax16,03422,019
Income tax expense13(4,634)(6,410)
Net Income11,40015,609
Profit is attributable to:
Equity holder of the parent11,96215,609
Non-controlling interests(562) -
Earnings per share
Basic and diluted earnings per share ($)18$0.11$0.15
The accompanying Notes form an integral part of the consolidated Financial Statements.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 67
FINANCIAL STATEMENTS 2024-2025
Consolidated Statement Of Comprehensive Income
For the Year Ended 31 March 2025
Note2025
$’000
2024
$’000
Profit after tax11,40015,609
Other comprehensive income
Foreign exchange difference on translation of foreign operations(342)(67)
Other comprehensive loss for the year, net of tax(342)(67)
Total comprehensive income11,05815,542
Total comprehensive income is attributable to:
Equity holder of the parent11,62015,542
Non-controlling interests(562) -
11,05815,542
The accompanying Notes form an integral part of the consolidated Financial Statements.
WORKING TO IMPROVE YOUR HEALTH | 68
FINANCIAL STATEMENTS 2024-2025
Consolidated Statement Of Changes In Equity
For the Year Ended 31 March 2025
Share capitalShare options reserveForeign currency translation reserveRetained earningsTotalNon-controlling interestsTotal
Note$’000$’000$’000$’000$’000 $’000$’000
Balance 31 March 202378,240 -226(5,198)73,268 -73,268
31 March 2024
Profit after tax - - -15,60915,60915,609
Other
comprehensive income
- -(67) -(67)(67)
Total
comprehensive income
- -(67)15,60915,542 -15,542
Conversion
of preference shares
- - - - - -
Issue of share capital17,20 -139 - -139139
Movement in share
options reserve
- - - - - -
Dividends paid - - -(1,154)(1,154)(1,154)
Balance 31 March 202478,2401391599,2578 7,79 5 -8 7,79 5
-
31 March 2025
Profit after tax - - -11,96211,962(562)11,400
Other
comprehensive income
- -(342) -(342) -(342)
Total
comprehensive income
- -(342)11,96211,620(562)11,058
Issue of share capital - - - - - - -
Movement in share
options reserve
-41 - -41 -41
Transfer
to retained earnings
-(139) - -(139) -(139)
Dividends paid - - -(1,678)(1,678) -(1,678)
Balance 31 March 202578,24041(183)19,54197,639(562)9 7,07 7
The accompanying Notes form an integral part of the consolidated Financial Statements.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 69
FINANCIAL STATEMENTS 2024-2025
Consolidated Balance Sheet
As at 31 March 2025
Note
2025
$'000
2024
$'000
ASSETS
Current assets
Cash and cash equivalents11,11012,040
Trade and other receivables948,56444,222
Inventories1048,47649,057
Derivative assets23192408
Total current assets108,342105,727
Non-current assets
Property, plant and equipment11479363
Intangible assets1258,22353,459
Right of use assets112,7713,458
Deferred tax13 -2,250
Total non-current assets61,47359,530
Total assets169,815165,257
LIABILITIES
Current liabilities
Trade and other payables1533,10534,140
Provisions165,6657,331
Lease liabilities14728796
Related party loan141,083 -
Current income tax liability2,6753,801
Total current liabilities43,25646,068
Non-current liabilities
Lease liabilities142,5863,194
Interest bearing liabilities1425,60028,200
Deferred tax131,296 -
Total non-current liabilities29,48231,394
Total liabilities72,73877,462
EQUITY
Share capital1778,24078,240
Retained earnings/(losses)19,5419,257
Share options reserve2041139
Foreign currency translation reserve(183)159
Equity attributable to equity holder of the parent97,6398 7,79 5
Non-Controlling Interests(562) -
Total equity9 7,07 78 7,79 5
Total liabilities and equity169,815165,257
The accompanying Notes form an integral part of the consolidated Financial Statements.
On behalf of the Board on 22 May 2025
David Flacks Dr Hartley Atkinson
Chair Founder and Chief Executive Officer
WORKING TO IMPROVE YOUR HEALTH | 70
FINANCIAL STATEMENTS 2024-2025
Consolidated Statement Of Cash Flows
For the Year Ended 31 March 2025
2025
$’000
2024
$’000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers204,766194,552
Payments to suppliers and employees(189,376)(164,469)
Tax paid(2,214)(1,222)
Net cash generated from operating activities13,17628,861
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment(281)(116)
Purchase of intangible assets(6,670)(9,411)
Net cash used in investing activities(6,951)(9,527)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid(1,678)(1,154)
Payment for lease liabilities(820)(859)
Borrowings repaid(2,600)(5,000)
Related party loan1,083
Interest received2566
Interest paid on lease liabilities(279)(307)
Interest costs paid on borrowings(2,542)(3,379)
Net cash used in financing activities(6,811)(10,633)
Net increase/(decrease) in cash(586)8,701
Impact of foreign exchange on cash and cash equivalents(344)48
Opening cash and cash equivalents12,0403,291
Closing cash and cash equivalents11,11012,040
The accompanying Notes form an integral part of the consolidated Financial Statements.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 71
FINANCIAL STATEMENTS 2024-2025
Reconciliation Of Profit After Tax With Net Cash Flow From Operating Activities
2025
$’000
2024
$’000
Profit after tax11,40015,609
Non-cash items and items classified as financing activities
Depreciation163201
Depreciation ROU assets831802
Amortisation1,6751,010
Intangible disposals231569
Share options expense41139
Interest on lease liabilities279307
Interest and finance expense2,5423,380
Unrealised loss on foreign currency movements81220
Provision for tax expense2,4205,188
Interest received(25)(66)
Movement in working capital
(Increase)/decrease in inventories581(6,660)
(Increase)/decrease in trade and other receivables(4,342)2,496
Increase/(decrease) in trade and other payables, provisions(2,701)5,666
Net cash generated from operating activities13,17628,861
The accompanying Notes form an integral part of the consolidated Financial Statements.
WORKING TO IMPROVE YOUR HEALTH | 72
FINANCIAL STATEMENTS 2024-2025
Notes To The Financial Statements
For The Year Ended 31 March 2025
1. Reporting Entity
AFT Pharmaceuticals Ltd (the “Company” or
“Parent”) together with its subsidiaries (the
“Group”) is a pharmaceutical distributor and
developer of pharmaceutical intellectual property.
The Company is incorporated and domiciled in
New Zealand, it is registered under the Companies
Act 1993. The address of the Company’s registered
office is 129 Hurstmere Road, Takapuna,
New Zealand.
The Company is an FMC reporting entity under the
Financial Markets Conduct Act 2013 and is listed on
both the NZX and ASX.
These consolidated financial statements were
approved for issue by the Board of Directors on 22
May 2025.
2. Basis of Preparation And Principles
Of Consolidation
Statement of compliance
These consolidated financial statements of the
Group have been prepared in accordance with the
requirements of the Companies Act 1993, Financial
Reporting Act 2013 and the Financial Markets
Conduct Act 2013. As Group consolidated financial
statements are prepared and presented for the
Parent and its subsidiaries, separate financial
statements for the Company are not required to be
prepared under the Companies Act 1993.
The consolidated financial statements of the Group
have been prepared in accordance with Generally
Accepted Accounting Practice in New Zealand
(NZ GAAP). The Group is a for-profit entity for
the purposes of complying with NZ GAAP. The
consolidated financial statements comply with
New Zealand equivalents to IFRS Accounting
Standards (‘NZ IFRS’), other New Zealand
accounting standards and authoritative notices that
are applicable to entities that apply NZ IFRS. The
consolidated financial statements also comply with
IFRS Accounting Standards (‘IFRS’).
Basis of accounting
These consolidated financial statements have been
prepared under the historical cost convention,
as modified by the revaluation of financial assets
and liabilities (including derivative instruments)
at fair value through profit or loss and/or other
comprehensive income.
Functional and presentation currency
The consolidated financial statements are
presented in New Zealand dollars (NZD), which is
the Company’s functional currency rounded to the
nearest thousand dollars unless otherwise stated.
Items included in the financial statements of each
of the subsidiaries are measured using the currency
of the primary economic environment in which the
entity operates (the functional currency).
Foreign currency transactions and balances
The results and balance sheets of all foreign
operations (none of which has the currency of a
hyperinflationary economy) that have a functional
currency different from New Zealand dollars are
translated into the presentation currency as follows:
• Monetary assets and liabilities for each balance
sheet presented are translated at the closing rate
at the date of that balance sheet
• Income and expenses for each income statement
and statement of comprehensive income are
translated at average exchange rates, unless
this is not a reasonable approximation of the
cumulative effect of the rates prevailing on the
transaction dates, in which case income and
expenses are translated at the dates of the
transactions, and
• Exchange differences arising are recognised in
other comprehensive income and accumulated in
equity in a foreign exchange translation reserve.
• Non-monetary items carried at fair value that are
denominated in foreign currencies are translated
at the rates prevailing at the date when the fair
value was determined. Non-monetary items
that are measured in terms of historical cost in a
foreign currency are not retranslated.
Basis of consolidation
The consolidated financial statements incorporate
the assets and liabilities of all subsidiaries of the
Group as at the balance date and the results of all
subsidiaries for the year then ended.
Intercompany transactions, balances and unrealised
gains on transactions between subsidiary
companies are eliminated. Unrealised losses are
also eliminated unless the transaction provides
evidence of the impairment of the
asset transferred.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 73
FINANCIAL STATEMENTS 2024-2025
Critical accounting estimates and judgements
In applying the Group’s accounting policies, the
directors are required to make judgements (other
than those involving estimations) that have a
significant impact on the amounts recognised
and to make estimates and assumptions about
the carrying amounts of assets and liabilities that
are not readily apparent from other sources. The
estimates and associated assumptions are based
on historical experience and other factors that are
considered to be relevant. Actual results may differ
from these estimates.
The estimates and underlying assumptions are
reviewed on an ongoing basis. Revisions to
accounting estimates are recognised in the period
in which the estimate is revised if the revision
affects only that period or in the period of the
revision and future periods if the revision affects
both current and future periods.
Significant estimates are disclosed in each of the
applicable notes to the financial statements and are
designated with an
symbol.
Material accounting policy information
Material accounting policies are disclosed in each
of the applicable notes to the financial statements
and are designated with an
symbol. All
mandatory amendments have been adopted in
the current year. None of the amendments had a
material impact on these financial statements.
Standards and interpretations in issue
not yet effective
At the date of authorisation of these financial
statements, the Group has not applied new and
revised NZ IFRS standards and amendments that
have been issued but are not yet effective. It is not
expected that the adoption of these standards and
amendments will have a material impact on the
financial statements of the Group.
In April 2024, the International Accounting
Standards Board introduced IFRS 18 Presentation
and Disclosure in Financial Statements (effective
for reporting periods beginning on or after
1 January 2027). This standard replaces IAS
1 Presentation of Financial Statements. An
equivalent, NZ IFRS 18 was issued on 23 May
2024. NZ IFRS 18 also applies to reporting periods
(including interim periods) beginning on or
after 1 January 2027 and will replace NZ IAS 1.
Management are still assessing the impact and note
this may change the presentation
of primary statements.
Goods and Services Tax (GST)
The income statement and the statement of
comprehensive income have been prepared so that
all components are stated exclusive of GST. All items
in the balance sheet are stated net of GST, with
the exception of accounts receivable and payable,
which include GST invoiced. All components of the
statement of cash flows are stated exclusive of GST.
3. Significant Transactions And Events
In The Financial Year
The Group received confirmation from the Inland
Revenue Department that its application for
amending each of the 2018 to 2022 income tax
returns for capitalised product development
expenditure, to be treated as deductible, was
approved. The Group has therefore calculated the
current tax and deferred tax expense on that basis.
In addition, the Group made an application to
amend each of the 2018 to 2022 income tax returns
for capitalised product registration expenditure,
to be treated as deductible. The Inland Revenue
Department declined the opportunity to offer a
determination on this application, and in respect
of both deductions made by the Group in the
2023 income tax year and the intention to do so
in subsequent claim years. Further detail can be
found in note 13, Income Tax.
In the 2024 annual report the Group provided an
overview of a judgement made by the High Court
of Auckland, and an appeal that arose from an
aspect of the Courts judgement. An update can be
found in note 21, Contingent Assets and Liabilities.
There were no other significant transactions and
events during the current year.
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2024
WORKING TO IMPROVE YOUR HEALTH | 74
FINANCIAL STATEMENTS 2024-2025
4. Revenue From Operations
2025
$’000
2024
$’000
Sale of goods204,827185,495
Royalty income2,5271,377
Licensing Income6678,539
Total revenue from operations208,021195,411
Revenue is measured based on the consideration to which the Group expects to be entitled in a contract
with a customer and excludes amounts collected on behalf of third parties:
• The sale of goods, excluding GST and discounts, are recognised when control of the product
is transferred to the customer at a point in time. For discounts not invoiced at reporting date,
these are estimated based on agreements with customer and estimated depletions during the period.
• Licensing income, the Group has entered into a number of out-licencing contracts whereby the
Group’s obligations are the provision of territorial rights to the company’s intellectual property and
the provision and support of the documentation required to enable registration of the product in the
territory. The Group typically receives an upfront fee, milestone payments for specific registration and/or
development-based outcomes, and sales-based milestones or royalties as consideration for the license.
Licenses coupled with other services, must be assessed to determine if the license is distinct (that is, the
customer must be able to benefit from the IP on its own or together with other resources that are readily
available to the customer, and the Group’s promise to transfer the IP must be separately identifiable
from other promises in the contract). If the license is not distinct, then the license is combined with other
goods or services into a single performance obligation. Revenue is then recognised as the Group satisfies
the combined performance obligation.
A license will either provide:
• A right to access the entity’s intellectual property throughout the license period, which results in revenue
that is recognised over time;
or
• A right to use the entity’s intellectual property as it exists at the point in time in which the license is
granted, which results in revenue that is recognised at a point in time. For sales- or usage-based royalties
that are attributable to a license of IP, the amount is recognized at the later of:
– when the subsequent sale or usage occurs; and
– the satisfaction or partial satisfaction of the performance obligation to which some or all of the sales or
usage-based royalty has been allocated.
• Royalty revenue is recognised on an actual and accrual basis in accordance with the substance
of therelevant agreement provided that it is probable that economic benefits will flow to the Company
and the amount of revenue can be measured reliably.
EAP
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2024
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 75
FINANCIAL STATEMENTS 2024-2025
5. Joint Operations
Hyloris Pharmaceuticals SA and AFT have been collaborating in the development of the Maxigesic IV
product. AFT has now licensed the product to a number of partners covering multiple countries. Maxigesic
IV is protected by several granted and pending patent applications. Under the terms of the development
collaboration agreement between Hyloris and AFT, Hyloris is eligible to receive a thirty five percent share
on any product related revenues, such as license fees, royalties, milestone payments, received by AFT. The
arrangement constitutes a joint operation whereby the Group recognises, in relation to its interest in the
joint operation, its share of assets and liabilities in the consolidated statement of financial position and
share of revenue earned and expenses incurred in the consolidated income statement. The Group accounts
for the assets, liabilities, revenues and expenses relating to its interest in the joint operation in accordance
with the NZ IFRS standards applicable to the particular assets, liabilities, revenues and expenses.
Interests in joint operations
A joint operation is a joint arrangement whereby the parties that have joint control of the arrangement
have rights to the assets and obligations for the liabilities relating to the arrangement. Joint control is the
contractually agreed sharing of control of an arrangement, which exists only when decisions about the
relevant activities require unanimous consent of the parties sharing control.
6. Segment Reporting
Operating Segments
Australia
$’000
New
Zealand
$’000
Asia
$’000
Rest of
World
$’000
Head
Office
$’000
Total
$’000
31 March 2025
Revenue - Sale of goods127,10153,7899,99713,940 -204,827
Revenue - Royalties - -1,0921,435 -2,527
Revenue - Licensing - - -667 -667
Total revenue127,10153,78911,08916,042 -208,021
Other income - - -753 -753
Depreciation - ROU assets51158 - -262831
Depreciation - Other20 - - -143163
Amortisation - - -1,676 -1,676
Operating profit / (loss)25,4758,7611,779(7,322)(11,045)17,648
Finance income - - - -2525
Interest expense - Loans - - - -(2,542)(2,542)
Interest expense - Lease
liabilities
(96)(10) - -(173)(279)
Other finance gains/(losses) - - - -1,1821,182
Profit / (loss) before tax25,3798,7511,779(7,322)(12,553)16,034
Total assets55,54250,403563,865 -169,815
ROU assets814142 - -1,8152,771
Property plant and equipment159 - - -320479
Pascomer IP - - -12,500 -12,500
Other intangible assets - - -45,723 -45,723
Total liabilities12,82928,340-2,38827,88671,443
Capital expenditure*154--6,6701276,951
* Capital expenditure includes both intangible and tangible asset additions.
AP
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2025
WORKING TO IMPROVE YOUR HEALTH | 76
FINANCIAL STATEMENTS 2024-2025
Operating Segments
Australia
$’000
New
Zealand
$’000
Asia
$’000
Rest of
World
$’000
Head
Office
$’000
Total
$’000
31 March 2024
Revenue - Sale of goods108,20948,71910,02318,544 -185,495
Revenue - Royalties - -671706 -1,377
Revenue - Licensing - - -8,539 -8,539
Total revenue108,20948,71910,69427,789 -195,411
Other income - - -528 -528
Depreciation - ROU assets48357 - -262802
Depreciation - Other15 - - -186201
Amortisation - - -1,010 -1,010
Operating profit / (loss)15,5107,2772,5048,555(9,611)24,235
Finance income1 - - -6566
Interest expense - Loans - - - -(3,379)(3,379)
Interest expense - Lease
liabilities
(112)(9) - -(186)(307)
Other finance gains/(losses) - - - -1,4041,404
Profit/(loss) before tax15,3997,2682,5048,555(11,707)22,019
Total assets53,58751,099355,9054,663165,257
ROU assets1,29288 - -2,0783,458
Property plant and equipment25 - -3335363
Pascomer IP - - -12,500 -12,500
Other intangible assets - - -40,959 -40,959
Total liabilities12,55929,510282034,57177,462
Capital expenditure1 -29,4141119,528
Operating segments are reported in a manner consistent with the internal reporting provided to the chief
operating decision maker (CODM). For the purposes of NZ IFRS 8, the CODM is a group comprising the
Board of Directors, together with the Chief Executive Officer, the Chief of Staff, the Chief Financial Officer
and the Director of International Business Development. Management report on operating segments net
of intersegment revenue so that the revenue amount reflects the end customer’s reportable geography.
Intersegment transactions are eliminated for Management reporting. This has been determined on the
basis that it is this group that determines the allocation of the resources to segments and assesses their
performance.
The Group has four operating segments based on geographical locations reportable under NZ IFRS 8,
as described below, which are the Group’s strategic groupings of business units. The following summary
describes the operations in each of the Group’s reporting segments:
• New Zealand – Includes the sales and distribution activity relating to the New Zealand market.
• Australia – Includes the sales and distribution activity relating to the Australian market.
• Asia – Includes the sales and distribution activity relating to the Asian market.
• Rest of World – Includes the out-licensing of IP developments to markets in which the Group does not
have a presence and the export of products to export markets. The costs of research and development
and new market development activity not specific to the other segments are expensed to this segment.
Head Office – Head Office functions include maintaining all supplier relationships, procurement of inventory,
regulatory activity, governance, marketing activity and finance activity.
Major Customers – Revenues from one customer of the Australian segment (being a licensed wholesaler)
represents approximately NZ$40.3m (2024 NZ$45.9m) and from one customer of the New Zealand
segment (also being a licensed wholesaler) represents approximately NZ$38.1m (2024: NZ$24.5m) of the
Group’s total revenues.
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2025
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 77
FINANCIAL STATEMENTS 2024-2025
7. Operating Profit
Note
2025
$’000
2024
$’000
Profit before tax16,03422,019
After charging the following specific expenses
Finished goods materials included in cost of sales115,371105,217
Inventory write off included in cost of sales9371,922
Fees paid to auditors8335292
Short term rental expenses - premises161154
Share options expense (41)139
Short term employee emoluments (*)
Selling and distribution expenses11,50910,102
General and administration expenses3,7913,197
Research and development expenses4,0503,187
19,35016,486
Research and development expenses
Business development5,7163,286
New market development1,7281,620
7,4444,906
Depreciation
Plant and machinery104142
Furniture and fittings3524
Vehicles2435
ROU equipment312
ROU vehicles448412
ROU buildings380378
9941,003
Amortisation
Patents207196
Software12
Development costs1,087739
Registration costs38073
1,6751,010
Finance costs
Interest on borrowings2,5423,379
Interest on ROU liabilities279307
Foreign exchange (gains)/losses(725)(1,106)
Derivative (gains)/losses(435)(287)
Other financing costs/(gains)(22)(11)
1,6392,282
* This includes contributions recognised as an expense
for defined contributions 912 883
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2025
WORKING TO IMPROVE YOUR HEALTH | 78
FINANCIAL STATEMENTS 2024-2025
8. Fees Paid To Auditors
2025
$’000
2024
$’000
Audit of financial statements
Audit of annual financial statements288247
Review of interim financial statements4745
Total fees paid to Deloitte335292
9. Trade And Other Receivables
2025
$’000
2024
$’000
Trade receivables53,61052,263
Less provision for customer rebates(10,414)(11,258)
43,19641,005
Expected credit loss - -
Prepayments & sundry debtors5,3683,217
Total trade and other receivables48,56444,222
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2025
For rebates not invoiced at reporting date, these are estimated based on agreements with customers and
estimated depletions during the period. High levels of judgement are required at year end to estimate the
accrual for rebates. Management must estimate the mix of sales that will ultimately be made to each end
user in order to calculate the rebate accrual as well as the time lag between the sale of the product and its
respective rebate claim.
E
Ageing of overdue trade debtors
1-30 Days
$’000
31-60 Days
$’000
61-90 Days
$’000
90+ Days
$’000
Total
$’000
31 March 20252,7853368403064,267
31 March 20242,259460902813,090
All balances are expected to be settled within the next 12 months.
The expected credit loss (ECL) allowance provision has been determined as follows:
As at 31 March 2025
Current
$’000
Current to
1 month
$’000
Greater
than 1
month
$’000
Total
$’000
Expected loss rate**0.03%
Gross carrying amount49,3432,7851,48253,610
Expected credit loss allowance provision -
Short term loss allowance provision -
Long term loss allowance provision -
As at 31 March 2024
Current
$’000
+1 Month
$’000
>1 Month
$’000
Total
$’000
Expected loss rate**0.03%
Gross carrying amount49,1732,25983152,263
Expected credit loss allowance provision -
Short term loss allowance provision -
Long term loss allowance provision -
*Expected credit losses are negligible.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 79
FINANCIAL STATEMENTS 2024-2025
The average credit period on sale of goods is 54 days (2024: 52 days). No interest is charged on
outstanding trade receivables.
The Group always measures the loss allowance for trade receivables at an amount equal to lifetime ECL.
The Group has applied the simplified approach to providing for expected credit losses, which requires the
recognition of a lifetime expected loss provision for trade and other receivables. NZ IFRS 9 requires the
Group to consider future potential credit losses and consider items such as forecasted economic conditions.
The Group does not expect any significant expected credit losses due to the nature of the distribution and
regulatory licensing structure of the industry.
The expected credit losses on trade receivables are estimated using a provision matrix by reference to past
default experience of the debtor and an analysis of the debtor’s current financial position, adjusted for factors
that are specific to the debtors, general economic conditions of the industry in which the debtors operate and
an assessment of both the current as well as forecast direction of conditions at the reporting date.
As the Group’s historical credit loss experience does not show significantly different loss patterns for different
customer segments, the provision for loss allowance based on past due status is not further distinguished
between the Group’s different customer base. Bad debt expense for the current year was nil (2024: nil).
Inventories are stated at the lower of cost and net realisable value. Cost is determined on a weighted
average cost basis. Net realisable value is the estimated selling price in the ordinary course of business less
the estimated costs of completion and the estimated costs necessary to make the sale.
10. Inventories
2025
$'000
2024
$'000
Inventory on hand50,21250,046
Provision for obsolescence(1,736)(989)
Total inventories48,47649,057
AP
AP
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2025
WORKING TO IMPROVE YOUR HEALTH | 80
FINANCIAL STATEMENTS 2024-2025
All plant and equipment is stated at historical cost less depreciation and any impairment losses. Historical
cost includes expenditure that is directly attributable to the acquisition of the items. Subsequent costs
are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only when
it is probable that future economic benefits associated with the item will flow to the Company and Group
and the cost of the item can be measured reliably. All other repairs and maintenance are charged to the
consolidated income statement during the financial period in which they are incurred.
Depreciation of property, plant and equipment is calculated using the diminishing value method which
apportions the cost of the assets over their useful lives. The Group has the following classes of property,
plant & equipment and depreciation rates:
Category Depreciation rate (%)
Plant and Machinery 21% to 80%
Furniture and fixtures 9% to 60%
Vehicles 26% to 36%
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying
amount is greater than its estimated recoverable amount.
Gains and losses on disposal are determined by comparing proceeds to carrying amounts and are included
in the consolidated income statement.
11. Property, Plant And Equipment
Plant and
machinery
$’000
Furniture
and
fixtures
$’000
Vehicles
$’000
ROU
Buildings
$’000
ROU
Vehicles
$’000
ROU
Equipment
$’000
Total
$’000
Cost
Balance at 30 March 20231,3154992013,5111,279446,849
Net foreign currency
exchange differences
16211018 -47
Additions10412 -397937141,464
Disposals(3) - - -(359) -(362)
Balance at 30 March 20241,4325132023,9181,875587,998
Net foreign currency
exchange differences
3 -- -18 -21
Additions79202 -6149(45)391
Disposals(2) - - -(250) -(252)
Balance at 31 March 20251,5127152023,9241,792138,158
Accumulated depreciation
Balance at 30 March 2023(1,127)(356)(82)(1,315)(569)(35)(3,484)
Net foreign currency
exchange differences
(13)2(9)(17) -(1)(38)
Depreciation(142)(24)(35)(378)(412)(12)(1,003)
Disposals2 - - -347 -349
Balance at 30 March 2024(1,280)(378)(126)(1,710)(634)(48)(4,177)
Net foreign currency
exchange differences
(3)--(5) - -(7)
Depreciation(104)(35)(24)(380)(448)(3)(994)
Disposals - - - -22545270
Balance at 31 March 2025(1,387)(413)(150)(2,095)(857)(6)(4,908)
Carrying amounts
Balance at 30 March 2024152135762,2071,241103,821
Balance at 31 March 2025125302521,82993573,250
AP
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2025
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 81
FINANCIAL STATEMENTS 2024-2025
Lease accounting
The Group assesses whether a contract is or contains a lease at inception of the contract. The Group
recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements
in which it is the lessee, except for short term leases (leases less than 12 months duration), and leases of
low value assets. For these leases the Group recognises the lease payments as an operating expense on a
straight-line basis over the term of the lease.
The lease liability is initially measured at the present value of the lease payments that are not paid at
the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily
determined the Group uses its incremental borrowing rate.
The lease liability is presented as a separate line in the consolidated balance sheet.
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the
lease liability (using the effective interest rate method) and by reducing the carrying amount to reflect the
lease payments made.
The Group re-measures the lease liability (and makes a corresponding adjustment to the related right-of
use asset) whenever: The lease term has changed or there is a change in the assessment of exercise of a
purchase option, in which case the lease liability is remeasured by discounting the revised lease payments
using a revised discount rate
If or when the lease payments change due to changes in an index or rate or a change in expected payment
under a guaranteed residual value, in which cases the lease liability is re-measured by discounting the
revised lease payments using the initial discount rate (unless the lease payments change due to a change in
a floating interest rate, in which case a revised discount rate is used)
If or when a lease contract is modified and the lease modification is not accounted for as a separate lease,
in which case the lease liability is remeasured by discounting the revised lease payments using a revised
discount rate.
The Group did not make any such adjustments during the periods presented.
The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease
payments made at or before the commencement day and any initial direct costs. They are subsequently
measured at cost less accumulated depreciation and impairment losses.
Whenever the Group incurs an obligation for costs to dismantle and remove a leased asset, restore the site
on which it is located or restore the underlying asset to the condition required by the terms and conditions
of the lease, a provision is recognised and measured under NZ IAS 37. The costs are included in the related
right-of-use asset.
Right-of-use assets are depreciated over the shorter period of lease term and useful life of the underlying
asset. If a lease transfers ownership of the underlying asset or the cost of the right-of-use asset reflects
that the Group expects to exercise a purchase option, the related right-of-use asset is depreciated over the
useful life of the underlying asset. The depreciation starts at the commencement date of the lease.
The right-of-use assets are presented as a separate line in the balance sheet.
The Group applies NZ IAS 36 to determine whether a right-of-use asset is impaired and accounts for any
identified impairment losses.
Variable rents that do not depend on an index or rate are not included in the measurement of the lease
liability and the right-of-use asset. The related payments are recognised as an expense in the period in
which the event or condition that triggers those payments occurs and are included in the line “general and
administrative expenses” in the income statement.
See note 14 for interest bearing liability analysis and note 23 for lease maturity analysis.
AP
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2025
WORKING TO IMPROVE YOUR HEALTH | 82
FINANCIAL STATEMENTS 2024-2025
12. Intangible Assets
Pascomer
IP
$’000
Trademarks
$’000
Capitalised
registration
$’000
Capitalised
development
$’000
Patents
$’000
Software
$’000
Total
$’000
Cost
Balance at 30 March 202312,5001,1027,56323,1343,57253348,404
Additions -1781,3287,500405 -9,411
Disposals -(46)(319)(199)(5) -(569)
Balance at 30 March 202412,5001,2348,57230,4353,97253357,246
Additions -5571,2384,408467-6,670
Disposals -(26)(46)(122)(37) -(231)
Balance at 31 March 202512,5001,7659,76434,7214,40253363,685
Accumulated amortisation
Balance at 30 March 2023 - -(288)(950)(1,010)(529)(2,777)
Amortisation - -(73)(739)(196)(2)(1,010)
Disposals - - - - - - -
Balance at 30 March 2024 - -(361)(1,689)(1,206)(531)(3,787)
Amortisation - -(380)(1,087)(207)(1)(1,675)
Disposals - - - - - - -
Balance at 31 March 2025 - -(741)(2,776)(1,413)(532)(5,462)
-
Carrying amounts -
Balance at 30 March 202412,5001,2348,21028,7472,766253,459
Balance at 31 March 202512,5001,7659,02331,9452,989158,223
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2025
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 83
FINANCIAL STATEMENTS 2024-2025
Pascomer IP
The Group acquired the remaining 50% of Dermatology Specialties Limited Partner (“DSLP”) and its general
partner DSGP Limited, from its joint venture partner Tardimed Sciences on 5 July 2019 and these have been
fully consolidated from this date. DSLP was originally formed for the development and commercialisation of
the product, Pascomer, which uses the active ingredient Rapamycin for the topical treatment of indications
commencing with facial angiofibromas in tuberous sclerosis.
As a result of the transaction, the Group retained the rights to the intellectual property, future product sales
and royalties.
The Group also entered into an out-license agreement with Timber Pharmaceuticals LLC, under which
the Group has received revenues from the upfront milestone and expects to receive future revenues from
development, registration and commercial milestones as well as product sales and royalties.
Considering the inherent uncertainties of both the successful conclusion of clinical trials and the successful
registration with orphan status, the Group has recognised the Pascomer intellectual property at its fair
value of $12.5m at the time of the FY2019 business combination. It is being assessed for impairment
on an annual basis.
Since initial acquisition, the group continually assesses the progress of Pascomer. In April 2022 the US
Food and Drug Administration (FDA) approved a topical treatment indicated for facial angiofibroma (FA)
associated with Tuberous Sclerosis Complex (TSC) developed by Japan’s Nobelpharma. This means that
Nobelpharma has gained exclusivity for a period of seven years in USA which will prevent AFT filing its
Pascomer for this orphan indication with the FDA during this period. Nobelpharma also gained approval in
the EU in May 2023 and exclusivity for a period of ten years.
The clinical trial study was issued in July 2022 and showed Pascomer delivered statistically significant
[p<0.05] benefits against the clinically relevant investigator Global Assessment (IGA), FASI and patient-
physician improvement scales. However, the medicine did not reach the threshold on the IGA scale that the
US Food and Drug Administration (FDA) considered necessary for its registration in the United States (US)
as a treatment for FA. At around the same time Timber Pharmaceuticals LLC terminated its agreements
with AFT.
The clinical trial program for non-orphan drug Pascomer indications, including Port Wine Stain (PWS) will
continue and the significant formulation patent for Pascomer has been granted in Australia until November
2040 which will form the basis of further patent filings around the world.
The Group assessed the recoverability of the Pascomer IP carrying value of $12.5m plus Pascomer
capitalised development costs of $2.8m by reviewing the key assumptions made by independent registered
valuer, Edison Investment Research Limited in February 2024, which had been commissioned by the board.
The material assumptions made in that review were:
a) the successful clinical trials and registration in the US, Europe and Australasia
b) The period used for the discounted cash flow is out to 2043
c) The discount rate used 12.5%
d) For PWS the addressable market was taken as 0.7 million patients in the USA, 1.95 million in Europe
and 0.1 million in Australasia. It was assumed there was no growth in the patient base and a peak
penetration of 2.5% in all markets with a probability of success of 30%.
The valuation methodology used significant inputs which were not based on observable market data, and
therefore the valuation technique was classified as level 3 of the fair value hierarchy.
The Group also considered the possible impact, if any, arising from the appeal made against the high court
judgement detailed in note 21 Contingent Assets and Liabilities.
The Groups valuation indicates sufficient headroom such that a reasonably possible change to the key
assumptions and possible impact of the high court appeal is unlikely to result in an impairment of the
Pascomer assets. For further assurance the Group had the prior year valuation and assumptions reviewed in
the current year, by an appropriate specialist with prior expertise in the report, and remains confident in the
carrying value included.
E
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2025
WORKING TO IMPROVE YOUR HEALTH | 84
FINANCIAL STATEMENTS 2024-2025
Research and development
Research is the original and planned investigation undertaken with the prospect of gaining new knowledge
and understanding. This includes direct and overhead expenses for research, pre-clinical trials and costs
associated with clinical trial activities. All research costs are expensed when incurred.
Development is the application of research findings to a plan or design for the production of new or
substantially improved processes or products prior to the commencement of commercial production. When
a project reaches the stage where it is reasonably certain that future expenditure can be recovered through
the process or products produced, expenditure that is directly attributable or reasonably allocated to that
project is recognised as a development asset. The asset will be amortised from the date of commencement
of commercial production of the product to which it relates on a straight-line basis over the life of
the relevant patent or period of expected benefit. Development assets are reviewed annually for any
impairment in their carrying value.
Development and registration projects are regularly reviewed throughout the year by a staff committee
comprising the CEO, CFO, GM Development and Financial Controller. The status of each project is measured
against the requirements of NZ IAS 38 and the relevant costs incurred during the financial year are
capitalised where projects meet those criteria. The criteria considered in this assessment are:
a) the technical feasibility of completing the intangible asset so that it will be available for use or sale.
b) the Group’s intention to complete the intangible asset and use or sell it.
c) the Group’s ability to use or sell the intangible asset.
d) how the intangible asset will generate probable future economic benefits. Among other things,
e) the Group can demonstrate the existence of a market for the output of the intangible asset or the
intangible asset itself or, if it is to be used internally, the usefulness of the intangible asset.
f) the availability of adequate technical, financial and other resources to complete the development
and to use or sell the intangible asset.
g the Group’s ability to measure reliably the expenditure attributable to the intangible asset during
its development.
Finite useful life
Acquired patents, capitalised development costs, capitalised registration costs and software have a finite
life and are carried at cost less accumulated amortisation. Patents are amortised over a useful economic life
of 20 years, capitalised development costs and capitalised registration costs over the period of expected
benefit which is usually between 5 and 10 years, and software over 3 to 4 years.
Indefinite useful life
Acquired trademarks are considered to have indefinite useful lives. They are carried at cost less
accumulated impairment. Indefinite useful life assets are tested for impairment annually or when
impairment indicators exist. The assets carrying amount is written down immediately to its’ recoverable
amount if the asset’s carrying amount is greater than it’s estimated recoverable amount.
Impairment
Assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying
amount may not be recoverable. An impairment loss is recognised for the amount by which the asset’s
carrying amount exceeds its recoverable amount. The recoverable amount is the higher of an asset’s fair
value less costs to sell and value in use. For the purposes of assessing impairment, assets are grouped at
the lowest levels for which there are separately identifiable cash flows (cash generating units). Indefinite
useful life assets are tested for impairment annually and whenever there are indicators of impairment while
finite useful life assets are tested only when there are indicators of impairment.
AP
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2025
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 85
FINANCIAL STATEMENTS 2024-2025
13. Income Tax
2025
$’000
2024
$’000
Tax expense
Profit before tax16,03422,019
Tax calculated at domestic tax rates applicable4,4906,166
Adjustment due to different tax rates of subsidiaries operating in
different jurisdictions
602313
Tax on expenses not deductible2179
Tax on losses recognised(787) -
Prior year tax adjustment308(148)
Tax expense4,6346,410
Comprising
Current tax:
Current tax on profits for the year1,0884,206
Adjustment for current tax of prior year -(17)
Deferred tax3,5462,221
4,6346,410
Deferred tax balance
Deferred tax (liability)/asset(1,296)2,250
Deferred tax (liability)/asset(1,296)2,250
Deferred tax assets relating to unused tax loss carry-forwards and to Deductible temporary differences
are recognised if it is probable that they can be offset against future taxable profits or existing temporary
differences. As at 31 March 2025, the Group recognised deferred tax assets on temporary differences totalling
$nil (2024 $2,250k) since it was foreseeable that temporary differences could be offset against future taxable
profits. On the basis of the approved business plans of subsidiaries, the Group considers it probable that
temporary differences can be offset against future taxable profits. There is no expected change in capital
structure in the near future which is expected to affect the recoverability of the recognised deferred tax assets.
The movement in deferred tax is:
Provisions
$'000
Recognised
Total
Tax losses
$'000
Intangible
Assets
$'000
Stock Profit
Elimination
$'000
Total
$'000
31-Mar-23605 - -3,8664,471
Movements196 -(2,167)1,344(627)
Recognition of losses - - - - -
Prior period adjustments - -(1,594) -(1,594)
31-Mar-24801 -(3,761)5,2102,250
Movements298 -(4,767)923(3,546)
Prior period adjustments - - - - -
31-Mar-251,099 -(8,528)6,133(1,296)
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2025
WORKING TO IMPROVE YOUR HEALTH | 86
FINANCIAL STATEMENTS 2024-2025
Current and deferred income tax
The income tax expense or benefit for the year is the tax payable on the current period’s taxable income
(based on the national income tax rate for each jurisdiction) adjusted by changes in deferred tax assets
and liabilities attributable to temporary differences between the tax bases of assets and liabilities and
their carrying amounts in the financial statements, and to unused tax losses. Deferred tax assets and
liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are
recovered, or liabilities are settled, based on those tax rates which are enacted or substantively enacted
for each jurisdiction. The relevant tax rates are applied to the cumulative amounts of deductible and
taxable temporary differences to measure the deferred tax asset or liability. Such assets and liabilities
are not recognised if the temporary difference arises from the initial recognition (other than in a business
combination) of other assets and liabilities in a transaction that affects neither the taxable profit nor the
accounting profit and at the time of the transaction does not give rise to equal taxable and deductible
temporary differences. In addition, a deferred tax liability is not recognised if the temporary difference
arises from the initial recognition of goodwill. Deferred tax assets are recognised for deductible temporary
differences and unused tax losses only if it is probable that future taxable amounts will be available to
utilise those temporary differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying
amount and tax bases of investments in controlled entities where the parent entity is able to control the
timing of the reversal of the temporary differences and it is probable that the differences will not reverse in
the foreseeable future.
Based on the Inland Revenue’s confirmation, that capitalized product development expenditure from 2018
to 2022 was deductible in the year incurred, the Group has calculated the current and deferred tax expense
on that basis in the current year and included a deduction approximating to $4.5 million.
The Group has obtained further independent tax advice that reinforces the group’s position that capitalized
product registration costs are also deductible in the year incurred for tax purposes. The Group has
calculated the current and deferred tax balances using this, and earlier independent advice, for 2023 and
subsequent tax years. As Inland Revenue declined to provide a determination for capitalized product
registration costs incurred from 2018 to 2022, the Group has made no deduction for those costs
for tax purposes.
14. Interest Bearing Liabilities
2025
$’000
2024
$’000
Current lease liabilities728796
Non-current lease liabilities2,5863,194
Related party loan1,083 -
BNZ overdraft - -
BNZ Term loans current portion - -
BNZ Term loans non-current portion25,60028,200
Total29,99732,190
Opening balance of BNZ loan28,20033,200
BNZ loans drawn down - -
Repayment of principal(2,600)(5,000)
Closing balance25,60028,200
AP
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2025
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 87
FINANCIAL STATEMENTS 2024-2025
On 30 September 2022 the BNZ facility was renewed for a further three-year term through to April 2026.
The facility retains a) the $18.2 million term loan, b) the $10.0 million working capital facility, c) the $3.0
million overdraft and d) the $5.0 million Business Finance Scheme Loan (BFS). The maturity date for the
BFS is May 2026. Interest on the term loan and working capital facility is the BNZ CCAF or CARL plus a
margin of 1.45%. Interest on the overdraft is the BNZ market connect base rate plus a margin of 1.00%.
Interest on the BFS is fixed at 2.30%. The non fixed interest rates are reset on a quarterly basis.
As at year end the Group overdraft facility was nil (2024: nil). All covenants relating to the BNZ facility have
been complied with during the year.
The related party loan from Edge Group is an open term interest only loan providing working capital in the
United Kingdom. Interest is calculated based on AFT’s borrowing rate plus a margin of 1.45%.
Cash and cash equivalents include cash on hand, deposits held at call with financial institutions and other
short-term investments with original maturities of three months or less that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value, and bank overdrafts.
Bank overdrafts are shown within borrowings in current liabilities on the balance sheet.
Supplier rebates are based on profit sharing arrangements with suppliers which are estimated on achieving
expected set margin targets and the majority are expected to be utilised within the next 12 months.
These are included as an expense in cost of sales.
15. Trade And Other Payables
2025
$’000
2024
$’000
Trade payables25,11525,328
GST/VAT payable1,5442,476
Employee entitlements2,5892,043
Other payables and accruals3,8574,293
Total33,10534,140
16. Provisions
2025
$’000
2024
$’000
Opening balance of supplier rebates at 1 April7,3314,147
Prior period provision utilised to date(6,179)(2,035)
Provision utilised(1,343)(4,436)
Additional provisions required5,8569,655
Closing balance of supplier rebates at 31 March5,6657,331
AP
AP
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2025
WORKING TO IMPROVE YOUR HEALTH | 88
FINANCIAL STATEMENTS 2024-2025
17. Share Capital
Ordinary shares are classified as equity.
2025
Shares
2024
Shares
2025
$'000
2024
$'000
Ordinary share capital104,866,260104,866,26081,40681,406
Less capital raising costs - -(3,166)(3,166)
Total104,866,260104,866,26078,24078,240
2025
Shares
2024
Shares
2025
$'000
2024
$'000
Share capital at beginning of the year104,866,260104,866,26078,24078,240
Issue of ordinary shares for exercised
share options
- - - -
Total104,866,260104,866,26078,24078,240
Ordinary shares
No shares were issued during the period (2024: no shares were issued).
Staff share options
During the period no staff share options were exercised (2024: no staff share options were exercised,).
18. Earnings Per Share
2025
$'000
2024
$'000
Earnings used in the calculation of basic and diluted earnings per share
Profit after tax11,96215,609
Less Redeemable Preference shares dividend - -
Net Profit after tax attributable to Ordinary shareholders11,96215,609
Weighted average number of ordinary shares for the
purposes of basic and diluted earnings per share104,866,260104,866,260
Earnings per share
Basic profit per share ($)$0.11$0.15
Diluted profit per share ($)$0.11$0.15
Basic earnings per share is computed by dividing net earnings by the weighted average number of ordinary
shares outstanding during each period.
AP
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2025
19. Dividends Per Share
On 4 July 2024 payment of a dividend of 1.6 cent per share or approximately $1.7 million was paid,
this was not imputed. A maiden dividend of 1.1 cents per share, or approximately $1.2 million, was declared
to the ordinary shareholders during the prior year.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 89
FINANCIAL STATEMENTS 2024-2025
20. Staff Share Options
20252024
Average
exercise price
$ per shareOptions
Average
exercise price
$ per shareOptions
Balance at beginning of year3.46510,000 3.46510,000
Issued3.46- 3.46 -
Forfeited3.46- 3.46 -
Exercised *3.46- 3.46 -
Lapsed 3.46(345,600)3.46 -
Balance at end of year**3.46164,400 3.46510,000
* Weighted average share price for options exercised during the period $nil (2024: $nil)
** Of the 164,400 outstanding options, none are currently exercisable (2024: nil)
Share options outstanding at the end of the year have the following expiry dates, exercise dates
and exercise prices:
20252024
Expiry month
Exercisable
month
Exercise
price
May 2026May 20243.46 -168,600
May 2027May 20253.46 -168,600
May 2028May 20263.46 164,400172,800
Total share options outstanding164,400510,000
The weighted average remaining contractual life of options outstanding at the end of the period
was 3.2 years (2024: 3.2 years)
Share options reserve
2025
$’000
2024
$’000
Balance at beginning of year139 -
Current year amortisation41139
Transferred to ordinary share capital -
Options lapsed transferred to retained earnings(139) -
Balance at end of year41139
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2025
WORKING TO IMPROVE YOUR HEALTH | 90
FINANCIAL STATEMENTS 2024-2025
The Company has a share option plan for employees of the Group. In accordance with the terms of the plan,
as approved by the directors, certain employees on 5 May 2023 were granted share purchase options.
• Each employee share option converts into one ordinary share of the Company on exercise.
• No amounts are paid or payable by the recipient on receipt of the option.
• The options carry neither rights to dividends nor voting rights.
• Options may be exercised at any time from the date of vesting to the date of their expiry.
• The number of options granted is calculated in accordance with the performance-based formula
approved by the directors at previous Board meetings.
The formula rewards employees to the extent of the Group’s and the individual’s achievement judged
against both qualitative and quantitative criteria including the following financial and operational measures:
• Market share
• Net profit
• Target sales thresholds; and
• Product registration and licensing targets.
Staff share options are valued at fair value at the grant date as calculated using the Black Scholes model.
The fair value determined at the grant date of the equity-settled share-based payments is expensed on
a straight-line basis over the vesting period, based on the Group’s estimate of equity instruments that
eventually vest, with a corresponding increase in equity. At the end of each reporting period, the Group
revises its estimate of the number of equity instruments expected to vest. The impact of the revision of the
original estimates, if any, is recognised in profit or loss such that the cumulative expense reflects the revised
estimate, with a corresponding adjustment to the equity-settled employee benefits reserve.
21. Contingent Assets And Liabilities
The Group has provided a guarantee to Investec Limited for the lease premises AFT Pharmaceuticals (AU)
PTY Limited occupies in Sydney, Australia. A deposit of AUD$84,000 is held with NAB bank as security for
this lease.
The Group has provided a guarantee to Robt Jones Investment Holdings Ltd of $100,000 as security over
the leased office premises at 129 Hurstmere Road, Takapuna. Auckland.
The Group placed NZD$75,000 on term deposit with BNZ bank as security for a guarantee issued by BNZ
in favour of the NZX.
The High Court of Auckland made judgement in late August 2023 in a case brought against the Company
by a former contractor to the Company, PBL Solutions Limited (PBL), in Southeast Asia. In essence the
case involved PBL’s opportunity to participate in Pascomer drug development opportunities. As part of the
judgement the Court ruled AFT is not required to account to PBL for any profit which AFT may earn from
the application of Pascomer for treatment of nonorphan conditions such as Port Wine Stain (PWS). PBL
appealed this aspect of the judgement, and a hearing took place in February 2025. A judgment has yet to
be received from that hearing. The group included the appeal as one of its factors in assessing the carrying
value of the Pascomer IP, and the valuation indicates sufficient headroom such that a reasonably possible
change to the key assumptions is unlikely to result in an impairment of the Pascomer assets. The key
assumptions have remained materially the same as those reported in the March 2024 annual report. These
include successful clinic trials and registration in the US, Europe, and Australasia; cashflows out to 2043 at
a discount rate of 12.5% and for PWS, consistent addressable markets in the US, Europe, and Australasia.
The Group continue to assume no growth in the patient base, peak penetration of 2.5% and a success
probability of 30%.
22. Capital Commitments
The Group has no capital commitments at 31 March 2025 (31 March 2024: nil).
AP
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2025
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 91
FINANCIAL STATEMENTS 2024-2025
23. Financial Risk Management
Managing financial risk
The Group’s activities expose it to various financial risks as detailed below.
• Market risk
Management is of the opinion that the Group’s exposure to market risk at balance date is defined as:
Risk factor descriptionDescriptionSensitivity
Currency riskExposure to changes in foreign exchange rates on assets,
liabilities, revenue and expenses
As below
Interest rate riskExposure to changes in interest rates on borrowingsAs below
Other price riskNo commodity securities are bought, sold or tradedNil
• Foreign exchange risk
The Group benefits from the use of derivative financial instruments to manage foreign currency exposures.
The fair value of forward exchange contracts is calculated by reference to current forward exchange rates
at year end and the contract exchange rates, considered level 2 of the fair value hierarchy.
The Group sells and purchases goods and services to and from overseas customers and suppliers in several
currencies, primarily AUD, USD, EUR and GBP which exposes the Group to foreign currency risk. The Group
manages foreign currency risk through use of derivative arrangements, in particular forward exchange
contracts. The exposure is monitored on a regular basis based on Group foreign exchange policies, which allow
for up to 50% forward cover out for twelve months. Future revenues from markets outside Australasia will be
denominated primarily in USD and EUR which will provide an increasing natural hedge against costs.
In the current year net foreign exchange losses totalled $1,182k (2024: gain $1,404k). The balance of gains/losses
are derived from the restatement of monetary balances at the spot rate on the period-end balance date
of 31 March 2025 and settlement of transactions during the period.
In total, the Group had financial assets and liabilities denominated in the following currencies:
Currency
20252024
Assets
NZD$’000
Liabilities
NZD$’000
Assets
NZD$’000
Liabilities
NZD$’000
AUD41,3534,85941,7985,834
USD5,4124,8673,7777,337
MYR47015141
GBP850442494315
EUR5,3187, 6 372,9085,526
SGD1,033305589
CNY12411988
BND - -8 -
HKD3224
YEN -9 - -
CHF - -8 -
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2025
WORKING TO IMPROVE YOUR HEALTH | 92
FINANCIAL STATEMENTS 2024-2025
In total, the Group had financial assets and liabilities denominated in the following currencies:
Forward Foreign Exchange Contracts
Buy currency
Buy currency
amount ‘000
Sell amount
NZD$’000
Buy amount
NZD$’000
Fair value
NZD$’000
EUR6001,0661,14074
USD50081687458
Sell currency
Sell currency
amount $’000
Buy amount
NZD$’000
Sell amount
NZD$’000
Fair value
NZD$’000
AUD11,40012,58012,52060
Total asset as at 31 March 2025192
Total liability as at 31 March 2025 -
The following forward foreign exchange contracts were held at 31 March 2024:
Forward Foreign Exchange Contracts
Buy currency
Buy currency
amount ‘000
Sell amount
NZD$’000
Buy amount
NZD$’000
Fair value
NZD$’000
EUR4,8708,6448,838194
GBP3,6505,9136,084171
USD -
Sell currency
Sell currency
amount $’000
Buy amount
NZD$’000
Sell amount
NZD$’000
Fair value
NZD$’000
AUD10,54011,56411,52143
Total asset as at 31 March 2024408
Total liability as at 31 March 2024 -
• Interest rate risk
Borrowings are at a mixture of floating base rates plus a margin determined by the Group’s
performance against covenant adherence levels, which exposes the Group to cash flow
interest rate risk. There are no specific derivative arrangements to manage this risk.
• Credit risk
Financial instruments, which potentially subject the Group to credit risk, principally consist
of accounts receivable and cash and cash equivalents. Regular monitoring is undertaken to
ensure that the credit exposure remains within the Group’s normal terms of trade.
The Group has one significant concentration of credit risk at 31 March 2025, with the largest
debtor being AU$11.1m (31 March 2024: AU$15.93m). The value is stated net of expected
rebates. There has been no past experience of default and no indications of default in
relation to this debtor.
The Group’s cash and short-term deposits are placed with high credit quality financial
institutions. Accordingly, the Group has no significant concentration of credit risk other than
bank deposit. At balance date, bank deposits at each financial institution as a percentage
of total assets were; 1.9% with Bank of New Zealand at 31 March 2025 (2024 overdraft
position), and 4.0% at NAB Bank (2024: 3.8%). The carrying value of financial assets
represents the maximum exposure to credit risk.
• Liquidity risk
Liquidity risk is the risk that the Group may encounter difficulty in raising funds at short
notice to meet its commitments and arises from the need to borrow funds for working
capital. The directors monitor the risk on a regular basis and actively manage the cash
available to ensure the net exposure to liquidity risk is minimised.
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2025
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 93
FINANCIAL STATEMENTS 2024-2025
The liquidity/maturity profile of the liabilities (inclusive of derivative assets and liabilities) is as follows:
31 March 2025
< 1 year
$’000
1-2 years
$’000
2-5 years
$’000
> 5 years
$’000
TOTAL
$’000
Trade and other payables(33,105) - - -(33,105)
Borrowings(2,248)(27,015) - -(29,263)
Lease liabilities(1,073)(948)(1,772)(1,271)(5,064)
Derivative instruments (outbound)(14,402) - - -(14,402)
Derivative instruments (inbound)14,594 - - -14,594
Total(36,234)(27,963)(1,772)(1,271)(67,240)
31 March 2024$'000$'000$'000$'000$'000
Trade and other payables(34,609) - - -(34,609)
Borrowings(2,542)(2,542)(33,500) -(38,584)
Lease liabilities(1,010)(852)(1,539)(1,098)(4,499)
Derivative instruments (outbound)(26,078) - - -(26,078)
Derivative instruments (inbound)26,486 - - -26,486
Total(37,753)(3,394)(35,039)(1,098)(77,284)
Fair Values
The carrying values of trade receivables, trade payables and borrowings approximate their fair values because
of their short terms to maturity or interest reset dates. Trade receivables are valued net of provision and trade
payables are valued at their original amounts by contract.
24. Management of Capital
The Group’s objectives when managing capital are to safeguard the Group’s ability to continue as a going
concern so that it can continue to provide returns to its shareholders and to maintain a strong capital base to
support the development of its business. The Group meets these objectives through a mix of equity capital and
borrowings. The level and mix of capital are determined by the Group’s internal Corporate Governance policies.
Under the BNZ facility, there is a covenant requirement that the facility, comprising an overdraft and letter of
credit facility, must not exceed the total of 70% of acceptable debtors plus 50% of acceptable stock. Additional
covenants include a requirement for a minimum principal and interest cover ratio, a minimum net leverage ratio
and a maximum capital expenditure (capex) and research and development (R&D) ratio. Covenant reporting is
required on a quarterly basis. The Group was compliant with all BNZ covenants during the period.
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2025
WORKING TO IMPROVE YOUR HEALTH | 94
FINANCIAL STATEMENTS 2024-2025
25. Investment in Subsidiaries
Interest held
2025
%
2024
%
Country of
incorporationPrincipal activities
AFT Pharmaceuticals (AU) Pty Ltd100%100%Australia
Distribution of pharmaceuticals
in Australia
AFT Pharmaceuticals (S.E. Asia) Sdn Bhd100%100%Malaysia
Registration of
pharmaceuticals in Malaysia
AFT Orphan Pharmaceuticals Limited65%65%New ZealandNo activity
AFT Limited Partner Limited100%100%New Zealand
Sole partner in Dermatology
Specialties LP
Dermatology Specialties Limited Partnership100%100%New ZealandNo activity
DSGP Limited100%100%New Zealand
General partner of
Dermatology Specialties LP
AFT Dermatology Limited100%100%New ZealandDistribution of pharmaceuticals
AFT Pharmaceuticals (EUR) Limited100%100%Ireland
Distribution of pharmaceuticals
in Europe
Kiwi Health Pty Ltd100%100%Australia
Distribution of pharmaceuticals
in Asia
AFT Pharma UK Limited70%70%
United
Kingdom
Distribution of pharmaceuticals
in the UK
AFT Pharmaceuticals (HK) Limited100%100%Hong KongNo activity
AFT Pharmaceuticals (CAN) Limited70%70%Canada
Distribution of pharmaceuticals
in Canada
AFT Pharmaceuticals US Inc100%100%USA
Distribution of pharmaceuticals
in the US
AFT Pharmaceuticals (SA) Limited100% -South AfricaNo activity
AFT Pharmaceuticals Sinoject Limited70% -New ZealandNo activity
The consolidated financial statements incorporate the assets and liabilities and the results of the parent
and its subsidiaries controlled during the period.
Subsidiaries are all entities over which the Group has control. The Group controls an entity when the Group
is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability to
affect those returns through its power over the entity. Subsidiaries are fully consolidated from the date on
which control is transferred to the Group. They are deconsolidated from the date that control ceases.
The acquisition method of accounting is used to account for the subsidiaries of the Group. The cost of
an acquisition is measured as the fair value of the assets given, equity instruments issued and liabilities
incurred or assumed at the date of exchange. Identifiable assets acquired and liabilities and contingent
liabilities assumed in a business combination are measured initially at their fair values at the acquisition
date. The excess of the cost of acquisition over the fair value of the Group’s share of the identifiable net
assets acquired is recorded as goodwill. If the cost of acquisition is less than the Group’s share of the fair
value of the identifiable net assets of the subsidiary acquired, the difference is recognised in profit or loss.
Inter-company transactions, balances and unrealised gains on transactions between subsidiary companies
are eliminated. Unrealised losses are also eliminated unless the transaction provides evidence of the
impairment of the asset transferred.
AP
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2025
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 95
FINANCIAL STATEMENTS 2024-2025
26. Significant Events After Balance Sheet Date
On May 23 2024 the board approved the payment of a dividend of 1.8 cents per share of approximately
$1.9 million. This will not be imputed.
There were no other significant events after balance sheet date.
27. Related Parties
The Group had related party relationships with the following entities:
Related partyNature of relationship
Atkinson Family TrustAFT Chief Executive Officer, Hartley Atkinson, is a Trustee / Discretionary
Beneficiary of Atkinson Family Trust.
AFT Chief of Staff, Marree Atkinson, is a Discretionary Beneficiary
of Atkinson Family Trust"
Edge GroupMinority shareholder of AFT Pharma UK Limited. Related party loan
see note 14
Key management compensation
2025
$’000
2024
$’000
Director fees503501
Executive salaries1,7561,558
Short term benefits480416
Key management compensation2,7392,475
Related Party Loan1,083 -
Total remuneration of $264K was paid by the Group to close family members of the key management
personnel for individuals that were employed by the Group in the year ended 31 March 2025 (2024: $200K).
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2025
WORKING TO IMPROVE YOUR HEALTH | 96
FINANCIAL STATEMENTS 2024-2025
STATUTORY DISCLOSURES
Statutory Disclosures
DIRECTOR INTEREST DISCLOSURES
Shareholder Director Officer Or Trustee
Directors have given general notices disclosing interests in the Company’s Interest Register pursuant to
section 140(2) of the Companies Act 1993. All of those interests (and any changes to interests) notified
and recorded in the Interests Register during the financial year ended 31 March 2025 are set out below:
Director EntityRelationship
Hartley
Atkinson
AFT Orphan Pharmaceuticals LimitedDirector
AFT Pharmaceuticals (AU) Pty LimitedDirector
AFT Pharmaceuticals (SE Asia) SDN BHDDirector
Atkinson Family TrustTrustee and Discretionary
Beneficiary of the trust which
holds shares in AFT
AFT Limited Partner LimitedDirector
DSGP LimitedDirector
Dermatology Specialties, L.P.Director of AFT Limited
Partner Limited
AFT Dermatology LimitedDirector
AFT Pharmaceuticals (EUR) LimitedDirector
AFT Pharma UK LimitedDirector
Kiwi Health Pty LimitedDirector
AFT Pharmaceuticals (HK) LimitedDirector
AFT Pharmaceuticals (CAN) LimitedDirector
AFT Pharmaceuticals US, IncDirector
AFT Pharmaceuticals SA (Pty) LimitedDirector
AFT Pharmaceuticals Sinoject LimitedDirector
Hama HoldingsDirector (17 May 2024)
Marree
Atkinson
Atkinson Family TrustDiscretionary Beneficiary of the
trust, which holds shares in AFT
HAMA HoldingsDirector (17 May 2024)
David Flacks Vero Liability Insurance New Zealand LimitedDirector and Chairman
Flacks & Wong LimitedDirector
Vero Insurance New Zealand LimitedChairman and Director
Todd Corporation LimitedDirector
Angel Association of New ZealandChairman (1 April 2024)
Asteron LifeDirector (Ceased April 2025)
Ted Witek Trudell Medical InternationalDirector
Lumira VenturesSpecial advisor
Kuano LimitedDirector
Allison Yorston Suntory Beverage & Food OceaniaChief Marketing Officer
(Ceased 11 April 2025)
Australian Beverages Council LtdDirector (Ceased 21 March 2025)
Griffins SnacksDirector of Marketing, Griffins
Snacks (14 April 2025)
At the end of AFT’s Annual Shareholders Meeting on 2 August 2024, Anita Baldauf retired from the Board.
She was replaced by Alison Yorston on 12 November 2024. At the time of her retirement. Her entries in the
interest register included her role as a Director for Smart Design Limited (a company contracted to AFT for
services) and her role as a Director for Future Ready NZ Limited.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 97
STATUTORY DISCLOSURES
Interest In Transactions With The Company And Use Of Information
No directors have disclosed interests in transactions with the company for the purposes of section 140
(1) of the Companies Act 1993 during the financial year ending 31 March 2025, nor have any Directors
requested to disclose or use Company Information provided to them in their capacity as Directors as
required under section 145 (3) of the Companies Act 1993.
Acquisitions Or Disposals Of Shares In AFT
During the year ending 31 March 2025, the following directors disclosed the acquisition of relevant interests
in AFT ordinary shares as required under sections 146-149 of the Companies Act 1993.
• On 27 November 2024 Hartley Atkinson (jointly with Colin McKay) as trustees of the Atkinson Family
Trust, disclosed the acquisition of 10,132 shares in AFT.
• On 27 November 2024 Andrew Lane disclosed that he had acquired 95,000 shares in AFT in his own name.
Relevant Interests In AFT’s Shares
In accordance with the NZX Listing Rule 3.7.1 (d), at 31 March 2025, Directors had a relevant interest
in AFT ordinary shares as follows:
Director¹ShareholderNumberShare of
issued capital
Hartley AtkinsonHartley Atkinson & Colin Mckay 72,041,741 68.699%
Hama Holdings Limited 867,826 0.828%
72,909,567 69.526%
David FlacksDavid Mark Flacks & Adina Rita Betty Halpern 158,764 0.151%
JBWere (NZ) Nominees Limited 20,000 0.019%
178,764 0.170%
Andrew LaneAndrew Hamish Lane 95,000 0.091%
95,000 0.091%
Remuneration And Other Benefits
Directors’ remuneration and other benefits in the financial year ended 31 March 2025 are detailed in on
pages 58 to 62 of this report. For the purposes of section 161 of the Companies Act 1993, the following
entries were made in the Interests Register in relation to the payment of remuneration and other benefits
to Directors during the financial year ended 31 March 2025:
Director Remuneration and other benefits
Anita Baldauf
1
, David Flacks,
Andrew Lane, Ted Witek
The increase in Directors fees to take effect on 1 April 2024, on the
terms set out in the 21 May 2024 Board paper.
Hartley Atkinson,
Marree Atkinson
The payment of remuneration and the provision of other benefits by
the Company to each of Hartley Atkinson and Marree Atkinson on the
terms set out in a letter of amendment to the relevant employment
agreement and the 21 May 2024 Board paper.
Hartley Atkinson,
Marree Atkinson
The payment of Short-Term Incentive (STI) remuneration by the
Company to each of Hartley Atkinson and Marree Atkinson on the terms
set out in a letter of STI notification.
1
Anita Baldauf retired from the Board on 2 August 2024
Indemnity And Insurance
For the purposes of section 162 of the Companies Act 1993, an entry was made in the Interests Register in
relation to insurance effected for Directors of AFT, in relation to any act or omission in their capacity
as Directors on 31 October 2024. AFT provides insurance for Directors of AFT, in relation to any act
or omission in their capacity as Directors on 31 October 2024 and costs incurred by that Director
in relation to defending and settling a claim.
WORKING TO IMPROVE YOUR HEALTH | 98
STATUTORY DISCLOSURES
Subsidiary Company Directors
The following table lists the subsidiaries of AFT and the people held office as Directors of subsidiary
companies as at 31 March 2025:
Subsidiary Directors
AFT Pharmaceuticals (AU) Pty LimitedHartley Atkinson, Raymond MacGregor,
Donald Mackenzie.
AFT Pharmaceuticals (EUR) LimitedHartley Atkinson, Eddie Townsley
AFT Pharma UK LimitedHartley Atkinson, Vivian Hansen, Samer Taslaq.
AFT Pharmaceuticals (SE Asia) SDN BHDHartley Atkinson, Dion Seng Peng
AFT Limited Partner LimitedHartley Atkinson
DSGP LimitedHartley Atkinson
Dermatology Specialties, L.P.DSGP
AFT Dermatology LimitedHartley Atkinson
Kiwi Health Pty LimitedHartley Atkinson, Raymond MacGregor.
AFT Pharmaceuticals (HK) LimitedHartley Atkinson
AFT Pharmaceuticals (CAN) LimitedHartley Atkinson
AFT Pharmaceuticals US, IncHartley Atkinson
AFT Orphan Pharmaceuticals LimitedHartley Atkinson, Andrew Moore, Giles Moss,
Malcolm Tubby.
AFT Pharmaceuticals (SA) LimitedHartley Atkinson, Vivian Hansen
AFT Pharmaceuticals Sinoject LimitedHartley Atkinson
Shareholdings
As at 30 April 2025 there were 104,866,260 ordinary shares on issue, each conferring on the registered
holder the right to vote on any resolution at a meeting of shareholders, held as follows:
Size of shareholding Holders
Proportion of
total holders Shares
Share of
issued capital
1 - 1,000 933 44.40% 393,774 0.38%
1,001 - 5,000 709 33.75% 1,845,332 1.76%
5,001 - 10,000 238 11.33% 1,779,079 1.70%
10,001 - 50,000 171 8.14% 3,481,233 3.32%
50,001 - 100,000 19 0.90% 1,393,470 1.33%
100,001 - and over 31 1.48% 95,973,372 91.52%
TOTAL 2,101 100.00% 104,866,260 100.00%
As at 30 April 2025 there were 14 individuals holding a total of 164,400 options to acquire shares issued by
AFT under its employee long-term incentive scheme. The options are unlisted and carry no voting rights.
Subsidiary Directors Remuneration
• Raymond McGregor received A$12,000 during the year ended 31 March 2025 in his capacity as a Director
of AFT Pharmaceuticals (AU) Pty limited.
• Donald MacKenzie received A$50,000 during the year ended 31 March 2025 in his capacity as a Director
of AFT Pharmaceuticals (AU) Pty limited.
• JED Pharma received EUR$12,000 during the year ended 31 March 2025 in relation to Eddie Townsley
acting as Directors of AFT Pharmaceuticals(EUR) Limited.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 99
STATUTORY DISCLOSURES
Top 20 Shareholders
The top twenty holders of AFT’s ordinary shares as at 30 April 2025 are as follows:
NameShares
Share of
issued capital
Hartley Atkinson & Colin Mckay 72,041,741 68.70%
Accident Compensation Corporation - NZCSD 7,498,335 7.15%
Forsyth Barr Custodians Limited 5,315,534 5.07%
HSBC Nominees A/C NZ Superannuation
Fund Nominees Limited - NZCSD 1,688,572 1.61%
BNP Paribas Nominees (NZ) Limited - NZCSD 1,096,790 1.05%
BNP Paribas Nominees (NZ) Limited - NZCSD 1,046,390 1.00%
New Zealand Depository Nominee Limited 877,928 0.84%
Hama Holdings Limited
1
867,826 0.83%
MMC - Queen Street Nominees Limited Acf Salt Long Short Fund - NZCSD 768,123 0.73%
Forsyth Barr Custodians Limited 506,409 0.48%
FNZ Custodians Limited 495,601 0.47%
MMC Limited - NZCSD 420,554 0.40%
Custodial Services Limited 362,369 0.35%
Garrett Smythe Limited 336,612 0.32%
JP Morgan Nominees Australia Limited 300,000 0.29%
Joeri Yvonne Jozef Sels 212,832 0.20%
Jbwere (Nz) Nominees Limited 206,990 0.20%
FNZ Custodians Limited 193,348 0.18%
MMC - Queen Street Nominees Ltd Acf Salt Funds Management 189,000 0.18%
David Mark Flacks & Adina Rita Betty Halpern 158,764 0.15%
1
Hama Holdings is an entity linked to the Atkinson Family Trust.
Substantial Product Holders
According to notices given to AFT under the Financial Markets Conduct Act 2013, the following persons were
substantial product holders in AFT at 31 March 2025 in respect of the number of quoted voting products
noted below. As at the balance date 31 March 2025 there were 104,866,260 ordinary shares on issue:
Substantial Product Holder
Number of ordinary
shares in which the
relevant interest is held
Share of class held as
at the date of last
notice
Hartley Campbell Atkinson and Colin McKay
as Trustees of the Atkinson Family Trust72,909,567
1
69.51%
Accident Compensation Corporation (ACC)7,523,0337.174%
1
Includes the holdings of the Atkinson Family Trust and Hama Holdings
NZX Waivers And Exercise Of Powers
AFT was not granted any NZX Waivers during the financial year ending 31 March 2025, nor did it rely on waivers
granted in any prior period. Similarly, NZX did not exercise any of its powers under NZX Listing Rule 9.9.3 to
cancel, halt or suspend the listing or quotation of AFT’s Quoted Financial Products, or refer AFT, any of its
Directors, or any Associated Person to the NZX Markets Disciplinary Tribunal or any statutory or government body.
Donations
During the financial reporting period AFT contributed $5,000 to North Shore MP Simon Watts
Credit Rating
AFT does not currently have an external credit rating status.
WORKING TO IMPROVE YOUR HEALTH | 100
APPENDICES
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 101
APPENDIX 1
AFT FY 25 Climate Statement
Statement Of Compliance
AFT Pharmaceuticals (AFT) is a climate reporting
entity under the Financial Markets Conduct Act 2013.
Our climate-related disclosures for the period 1 April
2024 – 31 March 2025 on Pages 102 to 122 comply
with the Aotearoa New Zealand Climate Standards
(NZ CS) issued by the External Reporting Board. All
figures and commentary relate to the full year ending
31 March 2025, unless otherwise indicated.
AFT has elected to use the following adoption
provisions available under NZ CS 2:
• Adoption provision 2: Anticipated financial impacts
• Adoption provision 4: Scope 3 GHG emissions
• Adoption provision 5: Comparatives for Scope 3
GHG emissions
• Adoption provision 7: Analysis of trends
• Adoption provision 8: Scope 3 GHG emissions
assurance
This disclosure contains climate-related and
other forward-looking statements and metrics,
which are not and should not be considered
guarantees, predictions or forecasts of the future-
related outcomes or financial performance. These
statements are subject to known and unknown
risks, uncertainties, and other factors, many of
which are beyond AFT’s control. Readers are
cautioned not to place undue reliance on such
statements considering the significant uncertainty
in climate metrics and modelling that limit the
extent to which they are useful for decision-making,
and the many underlying risks and assumptions
may cause actual outcomes to differ materially.
David Flacks Dr Hartley Atkinson
Chair Managing Director
GOVERNANCE
Board of Directors
AFT’s Board is responsible for overseeing climate-related risks and opportunities,
progress towards and achievement of climate-related metrics and targets, and
incorporating climate-related risks and opportunities into the business strategy.
Climate Governance
Working Group
The Climate Governance Working Group is responsible for assessing and managing climate-
related risks and opportunities. This group consists of key management positions and is
responsible for assessing and reviewing climate-related risks and opportunities, monitoring
progress and engaging with the Board about climate-related risks and opportunities.
AFT Pharmaceuticals
personnel
AFT’s personnel have specific knowledge not necessarily held by members of the
Climate Governance Working Group. The Climate Governance Working Group engage
other AFT employees in management of climate-related risks and opportunities
when required. AFT personnel will implement operational changes to the strategy
determined by the Board and Climate Governance Working Group.
BOARD
CLIMATE GOVERNANCE WORKING GROUP
AFT PHARMACEUTICALS PERSONNEL
Oversight of climate-related risks and opportunities
Assess and manage climate-related risks and opportunities
Support and operationalise activities to address climate-related risks and opportunities
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APPENDIX 1: CLIMATE RESILIENCE
APPENDIX 1: CLIMATE RESILIENCE
Board Oversight
AFT’s Board of Directors is responsible for
overseeing climate-related risks and opportunities,
progress towards and achievement of climate-
related metrics and targets, and incorporating
climate-related risks and opportunities into the
business strategy.
The Board is informed about AFT’s climate-related
risks and opportunities at Board meetings through
papers and presentations from the Chief Financial
Officer and external experts. Climate-related risks
and opportunities are a standing agenda item at all
board meetings.
In January, the Board also received a presentation
from Oxygen Consulting on proposed changes to
the Climate-related Disclosures Regime and the
potential implications on AFT and progress towards
the preparation of the FY25 climate statement
including the scenario analysis process undertaken.
The Board sets, monitors progress against, and
oversees achievement of AFT’s metrics and
targets through papers and presentations at
Board meetings. In June, the Board reviewed and
approved AFT’s carbon reduction plan which
includes AFT’s emissions reduction targets and
initiatives to be implemented to achieve them.
When developing AFT’s business strategy, the
Board and Executive Management Team attend
an annual two-day session immediately prior to
the Annual General Meeting (AGM). As part of
this strategic planning, climate-related risks and
opportunities are considered in the development of
the strategy. In FY25, commitment to responsible
environmental stewardship by measuring GHG
emissions and mitigating climate-related risks are
included within the business strategy as strategic
initiatives.
The Board ensures it has the appropriate skills to
competencies available to provide oversight of
climate-related risks and opportunities through
knowledge building and engaging external experts
where required. Climate change governance
capability is also established through current and
former governance, management, and academic
experience in climate change and the environment,
including:
• David Flacks – Vero Liability Insurance
New Zealand Limited (Chairman), Vero Insurance
New Zealand Limited (Chairman), Todd
Corporation (Director), Member of Chapter Zero
New Zealand
• Andrew Lane – Abbot Laboratories
(Chairman of Pharma Division ESG Committee)
• Ted Witek – Trudell Medical International
(Director), Professor of Public Health
(Environmental Science) at the University of
Toronto, American Thoracic Society Fellow
(Environmental & Occupational Health Section)
• Allison Yorston – Suntory Beverage & Food
Oceania (ESG Committee)
David Flacks has also completed the Institute
of Directors’ Climate Change Governance
Essentials course.
Environment and Social (incl. Climate) is listed
as a skill in AFT’s Board skills matrix, which
is reviewed periodically.
Performance against AFT’s climate-related
metrics and targets are not incorporated into any
remuneration policies.
Management’s Role
AFT’s Climate Governance Working Group is
responsible for assessing and managing climate-
related risks and opportunities. The group consists
of key management positions including the Chief
Executive Officer, Chief Financial Officer, Manager
Financial Planning and Analysis, Head of Global
Logistics and Inventory, and the Supply Manager.
The Group’s responsibilities include:
• Assigning climate-related responsibilities to
management-level positions;
• Integrating, reviewing and updating climate-
related risks and opportunities within AFT
Pharmaceuticals’ risk management framework
and strategy resilience;
• Working with AFT’s personnel and external
stakeholders to operationalise its activities to
address climate-related risks and opportunities;
• Monitoring AFT’s progress on its climate-related
risks and opportunities;
• Meeting quarterly and as required to ensure
the effective progress of AFT’s climate-related
activities;
• Engaging with the Board as required on AFT’s
progress against its climate-related activities.
Other key management positions attend meetings
and assist the group as required and operationalise
activities to address climate-related risks
and opportunities.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 103
Health sector scenario development process
4.
Map drivers
to archetypes
1.
Agree focal
question & “scope”
2.
Agree scenario
archetypes
3.
Identify & rank
driving forces
5.
Draft narratives
6.
Quality check
& review
STRATEGY
Current Impacts
AFT experienced no material climate-related
physical or transition impacts in FY25.
Over the period we recorded four significant
extreme weather events upstream of our value
chain that resulted in delayed shipments, but these
impacts did not present any material financial
impact on AFT.
Scenario Analysis
Scenario analysis process
The purpose of the scenario analysis process
undertaken was to identify and assess AFT’s
climate-related risks and opportunities and test
the resiliency of our current business model and
strategy under different scenarios.
In FY25, AFT continued their engagement with
Oxygen Consulting, who have expertise in climate
change and sustainability, to support our process.
This primarily involved reviewing and confirming
use of the health sector-level climate change
scenarios to ensure they remained plausible and
challenging, reviewing our existing and identifying
Scenario analysis process
1.
DEVELOP
PROJECT
CHARTER
any new climate-related risks and opportunities,
and assessing their anticipated financial impacts
for materiality through meetings and workshops
facilitated by Oxygen Consulting.
No part of AFT’s value chain was excluded from
the process. No modelling was undertaken.
Scenarios
In collaboration with Tonkin & Taylor and other
climate reporting entities in the healthcare sector,
AFT contributed to the Technical Working Group
(TWG) supporting the development of the
health sector-level climate change scenarios
in 2023 - 2024. The approach to developing
the scenarios was based on resources from the
Taskforce for Climate Related Financial Disclosures
(TCFD) and the New Zealand External Reporting
Board. Six steps were undertaken, with a series of
workshops being held with the TWG as the project
progressed.
AFT elected to use the three scenarios developed
at the sector-level as part of its entity-level
scenario analysis process, focusing on both the
global and New Zealand-specific parameters in line
with the scope of its operations, manufacturing,
distribution networks and end users. These
scenarios were chosen due to AFT’s involvement
in their development and to allow for meaningful
comparison of climate statements.
3.
REVIEW EXISTING
AND IDENTIFY
NEW RISKS AND
OPPORTUNITIES
4.
ASSESS THE
ANTICIPATED
FINANCIAL IMPACTS
OF RISKS AND
OPPORTUNITIES
FOR MATERIALITY
2.
REVIEW
AND CONFIRM
HEALTH SECTOR
SCENARIOS
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APPENDIX 1: CLIMATE RESILIENCE
APPENDIX 1: CLIMATE RESILIENCE
Health Sector Scenarios
CategoryAmbitious and Orderly Delayed and DisorderlyHothouse World
IPCC Shared
Socio-
economic
Pathway (SSP)
SSP1-1.9SSP2-4.5SSP3-7.0
SummaryThe world shifts towards
a more sustainable
and socially inclusive
path, which respects
environmental boundaries
and emphasises human
health and wellbeing. With
growing recognition that
climate change is causing
a global health emergency,
emissions decline globally
from 2025–2050 through
the implementation of
ambitious and coordinated
climate action across
countries.
The world follows a path in
which social, economic, and
technological trends do not
shift markedly from current
patterns. While global
ambition and rhetoric is
high, the implementation
of climate action is variable
across countries.
With resurgent nationalism
around the world, policies
shift over time to become
increasingly oriented
towards domestic and
regional priorities. There is
declining public investment
in health and education,
with countries focusing on
achieving their own energy,
water and food security at
the expense of international
cooperation.
Severity of
physical
climate impacts
Lowest (but not none)Moderate to highHighest
Severity of
transition-
related impacts
Moderate (greatest in short-
term)
Low initially, then very highLowest (steadily increasing,
but also giving businesses
more time to adapt)
Consumer
sentiment
Rapid re-orientation
towards sustainable
lifestyles, as characterised
by a focus on wellbeing
and conscious consumption
including low carbon and
local production.
High levels of rhetoric
but limited changes to
consumption patterns
initially. As wealth
disparity increases, high
wealth individuals able to
access and afford highly
specialized products. Low
income individuals forced to
prioritise basic needs.
Highly material, but high
inequality means limited
purchasing power for many.
Direct impacts
from climate
hazards
Extreme weather events,
felt most by rural areas
including water borne
disease. Increased fire risk
leading to lower air quality
temporarily. Minor increase
in distribution and ecology
of infectious diseases,
water-borne and vector-
borne diseases, insects and
pests.
The severity, frequency and
duration of fire weather
increases with drought
conditions and increased
afforestation. Regular
fires lead to declining
air quality, particularly in
rural communities, which
increases the incidence of
respiratory disease between
2050–2100.
Frequent wildfires impact
air and water quality causes
an increased number of
hospitalisations due to
asthma and respiratory
diseases. Rise in extreme
heat events throughout
the century. Vector borne
diseases also affected –
new species establish in NZ
and cause outbreaks.
Financial
impact of
supply chain
disruptions
LowestHigh – fuel price shocks
and impacts from extreme
weather events
Frequent extreme events,
regular shortages.
Drives move towards
Australasian production in
pharmaceuticals
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 105
CategoryAmbitious and Orderly Delayed and DisorderlyHothouse World
Policy reaction
to climate
change
Immediate and smooth
(well signalled)
Delayed, abrupt and
onerous
Uncoordinated and reactive,
focused on adaptation
rather than mitigation
Regional policy
variation
LowHigh, gap between
developed and developing
countries on action
High, focused on domestic
priorities and regional
rivalry
Socioeconomic
context
Income inequalities
reduced, both in NZ and
between countries
Erosion of public services,
increase in poverty, increase
in traditional healing
practices due to this
High levels of inequality,
breakdown in social
cohesion
Global warming2041–2060: 1.6°C,
2081–2100: 1.4°C
2041–2060: 2.0°C,
2081–2100: 2.7°C
2041–2060: 2.1°C,
2081–2100: 3.6°C
Carbon price2050: NZ$250 tCO
2
e2050: NZ$250 tCO
2
e2050: N/A
NZ GDP impactModerate GDP impactsHigh GDP impactsHigh GDP impacts
NZ population2050: 6.13m2050: 6.13m2050: 6.93m
Percentage NZ
>65 years old
2050: 23.3%2050: 23.3%2050: 21.4%
Time Horizons
The short, medium, and long term time horizons included in the health sector-level climate span
to 2100 to align with projected climate physical impacts over this period.
AFT’s time horizons align with our strategic planning horizons and financial decision-making.
Time horizonAlignment with strategic planning horizons
and financial decision-making
Short-termLess than 1 year (aligned with
stock planning and budget cycles)
Managing any physical disruption from extreme
weather events. Putting in place initiatives to
manage GHG emissions and climate-related risks
and opportunities.
Medium-termNext 1- 3 years (aligned with
supplier and manufacturing
management)
Monitor possible transitional risks. Monitor and
mitigate any climate-related risks relating to
manufacturing and distribution, through strategy,
risk management process and contingency
planning.
Long-termNext 3 – 10 years (aligned
with AFT strategy and product
development cycles).
Monitor and manage any transitional risks (which
may accelerate depending on context).
AFT continues to mitigate the impacts of
potential physical risk (which may become more
pronounced) and may need to evolve in response.
Very Long-
term
Next 11 – 75 years (aligned with
scenario timeframes)
Focus on the continued mitigation of physical
risks resulting from climate change, such as sea
level rise, frequent extreme weather events, and
permanent changes in temperature patterns.
Health Sector Scenarios (continued...)
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APPENDIX 1: CLIMATE RESILIENCE
APPENDIX 1: CLIMATE RESILIENCE
Climate-Related Risks
Our climate-related risks are those we may experience under any of the three scenarios we have analysed.
RiskTypeRelevant scenarioTime horizonHow AFT is managing each risk
Extreme weather events may cause interruptions to AFT’s product manufacturing and distribution.
AFT’s business model relies on contract
manufacturing, third-party freight, and third-party
logistics providers. Extreme weather events such
as flooding and storms may cause interruptions
to AFT’s product manufacturing and distribution,
which may be temporary or sustained in nature.
This may impact AFT’s ability to manufacture
products, extend lead times, extend delivery
timeframes, and reduce overall access to products
for our customers. AFT expects to experience
greater business impacts in the event of sustained
interruptions that extend beyond 3 weeks.
Physical
Hot House World
Long-term – Very long-term
1. Multiple manufacturing sites.
2. Managing stock holdings.
3. Ability to utilise different
transit routes.
4. Multiple suppliers for active
ingredients.
5. Ability to source key products
from different manufacturing
sites at pace.
6. Assessing climate-related risks
of potential suppliers.
Changing customer requirements that favour climate-related and ESG performance may lead
to the loss of existing market access and the inability to access new markets.
AFT has begun to observe changing tender
requirements from prospective customers
surrounding climate-related and ESG performance,
including requirements for net zero targets, and
expects to see these requirements continue over
time. If AFT is unable to sufficiently demonstrate
how it is transitioning to a low-emissions economy
and meet customer requirements, this may lead to
the loss of existing market access and the inability
to access new markets.
The potential loss of existing market access could
cause revenue decline and reduced profit margins.
The extent of the impacts this may have on AFT is
dependent on the contract(s) that are lost.
Transition
Orderly & Disorderly
Short-term – Long-term
1. Net zero target in place.
2. GHG emissions reduction plan
in place.
3. Preparing annual climate
statements.
The transition to a low-emissions economy may lead to a misalignment between climate change
and medical regulation across jurisdictions.
As the world continues to transition to a low-
emissions economy and changes are made to
medical and climate change regulation over
time, this may cause a misalignment across
jurisdictions. Regulation focused on green
packaging specifications may be at odds with
medical regulation that is designed to ensure the
efficacy and safety of pharmaceutical products.
Pharmaceutical companies may be required to
change its product packaging to ensure it meets
the requirements of different jurisdictions which
may cause production delays and extend lead
times. We would expect this to be well signalled
with adequate transition times, however in a
disorderly transition this may not be communicated
sufficiently by regulators.
Transition
Disorderly
Short-term – Long-term
1. Monitoring regulation
direction.
2. Engaging with regulators.
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RiskTypeRelevant scenarioTime horizonHow AFT is managing each risk
AFT may fail to appropriately and accurately report its climate-related performance.
Increasing and changing requirements to report
AFT’s climate-related performance publicly
presents the risk that AFT is unable to meet
these requirements or fails to do so correctly.
In FY25, AFT is required to report its climate-
related performance under the Financial Markets
Conduct Act 2013. In the event that AFT fails to
appropriately and accurately report its climate-
related performance, AFT may face financial
penalties and experience reputational damage.
Transition
Disorderly
Short-term – Medium-
term
1. Engaging third-party support
to prepare climate statements.
2. Growing climate change
capability.
Climate-related risks (continued...)
Climate-Related Opportunities
Our climate-related opportunities are those that may be presented under any of the three scenarios
we have analysed.
OpportunityRelevant scenarioTime horizon
How AFT is harnessing each
opportunity
Opportunity to harness product demand spikes following extreme weather events such as flooding or storms.
Following extreme weather events, AFT may
experience short demand spikes and an increase in
sales, particularly in more vulnerable regions.
Hot
House
World
Very
long-
term
1. Managing stock holdings.
2. Engage CMOs if and when
this opportunity arises.
Opportunity for new products that address new and exacerbated health issues caused by acute
and chronic climate change impacts.
As mean temperatures increase and weather
patterns continue to change over time, AFT may
observe negative health outcomes associated with
cascading climate-related impacts. AFT may have
the opportunity to market new products that target
these health issues, but this will be assessed in the
future if they arise.
Hot House World
Very long-term
1. Integrate into product and
R&D strategy if and when this
opportunity arises.
Opportunity for AFT to access to new finance streams.
AFT has the opportunity to access new finance
products such as sustainability linked loans. This
includes the opportunity to convert AFT’s existing
debt facility into a sustainability linked loan, which
would allow AFT to access interest rate benefits
and decrease capital costs.
Disorderly
Medium-term
– Long-term
1. Engage with financial
institutions where appropriate.
Opportunity for AFT to grow access to new markets by demonstrating its transition to a low-emissions
economy.
AFT has begun to observe changing requirements from
prospective customers surrounding climate-related
and ESG performance, including requirements for net
zero targets, and expects to see this continue over time.
As AFT transitions to a low-emissions economy by
reducing its GHG emissions and addressing its climate-
related risks and opportunities, this may increase AFT’s
ability to grow access new markets.
Orderly
Short-term
– Long-term
1. Net zero target in place.
2. GHG emissions reduction plan
in place.
2. Preparing annual climate
statements.
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APPENDIX 1: CLIMATE RESILIENCE
APPENDIX 1: CLIMATE RESILIENCE
Transition Planning
Our business model and strategy
AFT is a growing multinational pharmaceutical company that develops, markets and distributes a broad
portfolio of pharmaceutical products across a wide range of therapeutic categories which are distributed
across all major pharmaceutical distribution channels: over-the-counter (OTC), prescription and hospital.
Our product portfolio comprises both proprietary and in-licensed products, and includes patented,
branded, and generic drugs.
Our business model involves developing and in-licensing products for sale by dedicated sales teams in
markets of Australia, New Zealand, United Kingdom, Canada and the USA, for some products.
For selected EU nations, Singapore and Hong Kong we engage in Tender Contracts. Elsewhere, we
license products to local enterprises and distributors. Consistent with pharmaceutical industry practice,
we generate revenue primarily through the sale of products and through royalties received from our out-
licensing and distribution arrangements.
We use third-party manufacturers to manufacture all our products. Where practicable, we engage multiple
manufacturing sites for any one product to mitigate any potential interruption to the supply chain. Product
quality is monitored through an internal risk-based quality assurance programme to augment the rigorous
industry and regulatory Good Manufacturing Practice (GMP) certification systems.
International Expansion
& Market Reach
• Continue to build the geographic presence in which AFT products
are sold.
• New regional business hubs to support operations in those area.
• Utilize out-licensing and distributor agreements where direct sales
aren’t feasible or optimal.
Product Portfolio & Innovation• Building and continuously innovating a select portfolio of existing
and in-licensed, patented products.
• Launch line extensions of key products like Maxigesic to cover
various dosage forms and consumer needs.
• Advance R&D pipeline to include new projects and therapies across
a range of therapeutic areas.
Operational Excellence &
Efficiency
• Improve gross margins and cost-effectiveness.
• Optimise inventory levels and manage supply chain challenges
effectively.
• Implement measures for more efficient manufacturing and
distribution.
Financial Discipline & Capital
Management
• Maintain a strong balance sheet and financial health.
• Maintain net debt levels at a manageable level.
• Invest strategically in growth opportunities, both organically and
through acquisitions/ partnerships.
• Return value to shareholders through dividend payouts.
Ethical & Sustainable Practices• Commit to responsible environmental stewardship by measuring
emissions and mitigating climate-related risks.
• Ensure ethical and compliant operations throughout the value chain.
• Promote diversity, inclusion, and fair treatment for all employees
and stakeholders.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 109
PHARMACEUTICAL
MANUFACTURERS
AFTDISTRIBUTIONCUSTOMERS
Value chain
• Contract Manufacturers
(CMOs)
- Australia
- China
- Europe
- India
- North America
- Other
• Research & Development
• Regulatory Compliance
• Quality Assurance
• Sales & Marketing
• Third-Party Logistics
• Warehousing
• Wholesalers Australia,
New Zealand,
United Kingdom
• Licensees
• Pharmaceutical Companies
• International Distributors
• Hospital
• Pharmacy
• Retail
• Ecommerce
Climate Transition Plan Framework
Our climate transition plan framework describes the transition planning aspects of our business model
and strategy. Development of our plan has been informed by the scenario analysis processes we have
undertaken in FY24 and FY25, the climate-related risks and opportunities we have identified, and our
carbon reduction plan.
The transition plan aspects of our strategy are embedded in our existing business model, strategy,
sustainability framework, and carbon reduction plan.
Tactical responses to each climate-related risk and opportunity have been provided alongside each risk
and opportunity in the Climate-related risks and Climate-related opportunities sections respectively.
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APPENDIX 1: CLIMATE RESILIENCE
APPENDIX 1: CLIMATE RESILIENCE
Climate Transition Plan Framework
Our Goal: Net-Zero by 2050
Decarbonise our businessManage risks and harness
opportunities
Work to improve health
and wellbeing
Ambition
We are committed to reducing
GHG emissions in-line with
what is needed to limit
warming to 1.5 degrees and
reach net-zero by 2050.
We are committed to
managing our climate-related
risks and harnessing our
climate-related opportunities
to ensure long-term business
resilience in the transition to a
low-emissions, climate-resilient
future.
We are committed to providing
positive health and wellbeing
outcomes for patients and
communities by growing our
product reach, maintaining
quality and safety systems, and
innovating in response to need.
Actions
• Measure and publicly report
our GHG emissions annually.
• Implement our carbon
reduction plan.
• Engage with our suppliers to
reduce GHG emissions.
• Manage physical risks
by maintaining multiple
manufacturing sites, good
stock holdings, diverse
transit route options, and
multiple suppliers for active
ingredients and production
of products.
• Monitor changing customer
and regulatory ESG
requirements and maintain
robust ESG practices that
keep pace with these
requirements.
• Monitor product demand
trends and health trends,
and maintain good stock
holdings to ensure we
can respond to demand
spikes and integrate any
opportunities into our R&D
strategy.
• Grow our product reach
and breadth of therapeutic
applications.
• Comply with best practice
standards and regulation in
medicine manufacture and
clinical trials.
• Continue investment in
research and development.
Metrics
and Targets
Near-term:
1. Reduce scope 1 GHG emissions by 42% by 2030 on a FY24 base year. In-line with a 1.5 degrees
of warming pathway*.
2. Reduce scope 2 GHG emissions by 42% by 2030 on a FY24 base year. In-line with a 1.5 degrees
of warming pathway*.
3. Reduce scope 3 GHG emissions by 42% by 2030 on a FY24 base year. In-line with a 1.5 degrees
of warming pathway*.
Long-term:
4. Reduce scope 1, 2, and 3 GHG emissions by 90% by 2050 on a FY24 base year and neutralise
residual GHG emissions through use of permanent removals. In-line with a 1.5 degrees of
warming pathway*.
Accountability
The Board is responsible for overseeing climate-related risks and opportunities, progress towards
and achievement of climate-related metrics and targets, and incorporating climate-related risks
and opportunities into the business strategy.
The Climate Governance Working Group is responsible for assessing and reviewing climate-related
risks and opportunities, monitoring progress and engaging with the Board about climate-related
risks and opportunities.
* See the GHG emissions targets section on Page 117 for more details on our climate-related targets.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 111
Carbon Reduction Plan
Our carbon reduction plan supports the
achievement of our near-term GHG emissions
target commitments across scope 1 and 2.
Target commitment 1: Reduce scope 1 GHG
emissions by 42% by 2030 on a FY24 base year.
Target commitment 2: Reduce scope 2 GHG
emissions by 42% by 2030 on a FY24 base year.
The scope 3 aspects of our carbon reduction plan
(target commitment 3) have not been disclosed
as AFT has elected to use Adoption provision 4:
Scope 3 GHG emissions. In working towards this
disclosure requirement, AFT has begun to engage
our suppliers to understand the emissions across
our value chain.
AFT has not yet developed a formal carbon
reduction plan to support the achievement of our
long-term target commitment.
Scope 1
Our scope 1 target commitment will be achieved
primarily by transitioning our existing vehicle fleet
from internal combustion engine (ICE) vehicles to
hybrid and battery electric vehicles. The following
assumptions are built into the reduction pathway:
• All existing vehicles travel the same distance
annually from FY25 to FY30.
• All existing ICE vehicles transition to hybrid
electric or battery electric vehicles upon lease
dates ending.
• Some existing vehicles are removed from the
vehicle fleet.
Scope 1 reduction pathway
350
300
250
200
150
100
50
0
t CO
2
e
FY24FY25FY26FY27FY28FY29FY30
BASE YEARTARGET YEAR
-42%
Vehicle fleet attrition, transition and efficiencies
VEHICLE FLEET ATTRITION, TRANSITION AND EFFICIENCIES
Our ability to execute the reductions is also
dependent upon the accessibility of hybrid and
battery electric vehicles across the target period,
which is out of our control.
Scope 2
Our scope 2 target commitment will be achieved
through market-based contractual instruments that
meet the GHG Protocol’s Scope 2 Quality Criteria
for both our New Zealand and Australian offices
across the target period. We do not yet have
an accurate timeline of when these contractual
instruments will be implemented.
Financial Planning
The scope 1 and 2 aspects of our carbon reduction
plan will be achieved through operational expenditure.
AFT’s primary use of capital is for the research
and development (R&D) phases of products. As
such, climate-related risks and opportunities are
not currently being used as inputs for AFT’s capital
deployment and funding decision-making processes.
Climate Resilience
Based on the scenario analysis process we
have undertaken, the climate-related risks and
opportunities we have identified, and the transition
planning aspects of our strategy, AFT believes our
business model and strategy is largely resilient
to future climate-related risks under different
scenarios. As such, we do not currently anticipate
a fundamental change in our business model or
strategy is required in the near-term to ensure
we are able to thrive in a low-emissions future.
WORKING TO IMPROVE YOUR HEALTH | 112
APPENDIX 1: CLIMATE RESILIENCE
APPENDIX 1: CLIMATE RESILIENCE
RISK MANAGEMENT
Identification And Assessment Of Climate-Related Risks
AFT undertook scenario analysis to identify and assess the scope, size and impact of our climate-related
risks and opportunities. The scenario analysis process undertaken in described in the Strategy section.
No part of AFT’s value chain was excluded from the process.
As part of the scenario analysis process undertaken in FY24, AFT identified a broad range of potential
climate-risks and opportunities that could plausibly impact our business under any scenario. We then used
the scenarios to explore the anticipated impact of each risk or opportunity under different conditions
through workshops and meetings.
To prioritise the severity of each risk under a particular scenario, we evaluated their likelihood and
consequence, where 'likelihood' related to the speed of onset, or the time horizon in which the risk
or opportunity was expected to occur, and 'consequence' related to the potential financial, regulatory,
operational, staffing and/or customer impacts on AFT. This consequence scale was used as it is used
to assess all other enterprise risks across AFT.
Opportunities were also prioritised using the same method under each scenario, where the consequence
on the business would result in a positive financial outcome for AFT.
In FY25, AFT reviewed our existing register of climate-related risks to understand if the existing risks
remained relevant under any of the scenarios and if any new risks have emerged. Through this process, we
consolidated many of our existing risks and removed some we no longer considered financially material.
No modelling was undertaken as part of these processes and the assessment was qualitative in nature only.
Risk assessment matrix
Consequence
Severe/catastrophicVery highHighMediumLow
MajorHighHighMediumLow
ModerateMediumMediumLowLow
MinorLowLowLowVery low
InsignificantVery lowVery lowVery lowVery low
Short termMedium termLong termVery long term
Likelihood
Management Of Climate-Related Risks
In identifying and assessing our climate-related risks, we recognise that many of these risks are
interconnected to other existing risks being managed through our risk management framework. As a result,
our climate-related risks have been incorporated into our risk register, either separately or as inputs to other
risks in the register and are monitored alongside and with equal priority to other risks.
The management responses in place to mitigate and manage our climate-related risks are described
alongside each risk in the Strategy section and are embedded in our climate transition plan framework.
AFT will undertake a scenario analysis exercise on an annual basis to identify and assess new and existing
climate-related risks and update our risk management framework accordingly.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 113
METRICS AND TARGETS
GHG Emissions
AFT’s FY25 GHG emissions inventory has been prepared in accordance with the Greenhouse Gas
Protocol Corporate Accounting and Reporting Standard (2004). In our FY24 climate statement,
our FY24 GHG emissions inventory was prepared in accordance with ISO 14064-1:2018.
GHG emissions are presented as tonnes of carbon dioxide equivalents (t CO
2
e). No base year restatements
have been made.
ScopeCategory
Emission
source
t CO
2
e
% change from
base yearFY24FY25
Scope 1
Direct
emissions and
removals
Mobile
combustion
331.16290.33-12.33%
Refrigerant
leakages
0.60N/A**N /A
Total Scope 1331.76290.33-12.49%
Scope 2
Indirect
emissions
from imported
energy
Purchased
electricity
(location-
based)
18.5716.19-12.81%
Purchased
electricity
(market-based)
17.3218.74+8.20%
Total Scope 2*18.5716.19-12.81%
Total Scope 1 and 2*350.33306.52-12.51%
GHG emissions intensity*
(Scope 1+2 per $million revenue)
1.871.48-20.86%
* Reported using a location-based methodology.
** Excluded in FY25 as the emission source has been identified as de minimis (<1%).
DetailApproach
Measurement period1st April 2024 to 31st March 2025
Base year1st April 2023 to 31st March 2024 (FY24)
AssuranceReasonable assurance issued by Toitū Envirocare
Preparation standardGHG Protocol Corporate Accounting and Reporting Standard (2004)
Consolidation approachEquity share consolidation approach
Organisational boundariesSee Figure Organisational and Reporting Boundaries diagram
Emissions factors and Global
Warming Potential (GWP)
Emission factors and Global Warming Potentials were sourced from:
• New Zealand Ministry for the Environment 2024 (IPCC Fifth
Assessment Report, GWP100)
• BraveTrace Residual Supply Mix 2023/24
• Australia DCCEW 2024 (IPCC Fifth Assessment Report, GWP100)
WORKING TO IMPROVE YOUR HEALTH | 114
APPENDIX 1: CLIMATE RESILIENCE
APPENDIX 1: CLIMATE RESILIENCE
DetailApproach
CalculationsGHG emissions were calculated using the following methodology
GHG emissions = activity data x emissions factor
Where applicable, unit conversions applied when processing the activity
data has been disclosed.
There are systems and procedures in place that will ensure applied
quantification methodologies will continue in future GHG emissions
inventories.
ExclusionsRefrigerant leakages have been excluded as an emission source from our
scope 1 inventory as it has been identified as de minimis (<1%).
No facilities, operations or assets have been excluded from this scope 1
and 2 emissions inventory.
AFT has elected to use Adoption provision 4: Scope 3 GHG emissions.
UncertaintyThere is inherent uncertainty in measuring GHG emissions
as the methodologies used are based on estimates, judgements
and limited data. GHG quantification is subject to inherent uncertainty
because of incomplete scientific knowledge used to determine emissions
factors and the values needed to combine emissions of different gases.
Australia
Business
Unit
New Zealand
Business
Unit
Organisational and Reporting Boundaries
AFT PHARMACEUTICALS LIMITED
Company number: 873005
General Partner
100%
DSGP Limited
Company
number:
5723219
100%
Dermatology
Specialties,
L.P.
70%
AFT
Pharmaceuticals
UK Limited
Company
number:
14521612
100%
AFT
Pharmaceuticals
US, Limited
Delaware file
number:
3152590
100%
AFT
Pharmaceuticals
(HK) Limited
Company
number:
3293914
100%
AFT
Pharmaceuticals
(CAN) Limited
Company
number:
1000793709
100%
AFT
Pharmaceuticals
(EUR) Limited
Company
number:
674118
100%
AFT
Pharmaceuticals
(SE Asia)
SDN.BHD.
Company
number:
962386-U
100%
AFT Limited
Partner Limited
Company
number:
5723310
100%
AFT
Dermatology
Limited
Company
number:
5723327
100%
AFT
Pharmaceuticals
(AU) Pty Limited
ACN: 105 636 413
New Zealand Registered entities Overseas registered entities Climate Reporting Operational Boundary
Metrics and Targets (continued...)
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 115
Emission Sources, Methodologies, Uncertainties, And Assumptions
ScopeCategory
Emission
sourceActivity
Methodologies, uncertainties
and assumptions
Emission factor
source
1Direct
emissions
and
removals
Mobile
combustion
Regular
petrol;
Premium
petrol;
Diesel
Activity data (litres) has been
sourced from supplier reports
and internal finance systems.
We have assumed all supplier
reports are accurate and all
additional fuel spend has been
captured within our internal
financial tracking systems.
There is a high level of
uncertainty in regard to the
spend based activity data relative
to the fuel card report, but it
represents a smaller proportion
of activity.
Activity data was only
available for 10 months of the
reporting period. This has been
extrapolated out to 12 months.
We believe the available activity
data is a fair representation of
activity, but applying a 10+2
approach presents inherent
uncertainty.
Ministry for the
Environment
2024 Guide (IPCC
Fifth Assessment
Report, GWP100)
2Indirect
emissions
from
imported
energy
Imported
electricity
Purchased
electricity
Activity data (kWh) has been
sourced from supplier invoices.
We have assumed all supplier
invoices are accurate and
electricity usage has been
captured.
Data was only available for 11
months of the reporting period
for New Zealand specific data
and 10 months for Australian
specific data. These have been
extrapolated out to 12 months.
We believe the available activity
data is a fair representation of
activity, but applying a 10+2
approach presents inherent
uncertainty.
Ministry for the
Environment
2024 Guide (IPCC
Fifth Assessment
Report, GWP100)
BraveTrace
Residual Supply
Mix 2023/24
Australia DCCEW
2024 (IPCC Fifth
Assessment
Report, GWP100)
WORKING TO IMPROVE YOUR HEALTH | 116
APPENDIX 1: CLIMATE RESILIENCE
APPENDIX 1: CLIMATE RESILIENCE
GHG Emissions Targets
Target commitmentCoverage
Performance
against
target
Alignment with limiting
warming to 1.5 degrees
CelsiusUse of offsets
1Reduce scope 1
GHG emissions
by 42% by 2030
on a FY24 base
year.
Near-
term
100% of
scope 1
12.49%
absolute
decrease on
FY24
These targets have been
set using the Science Based
Targets initiative (SBTi)
Corporate Near-Term Criteria.
The target method used is
the cross-sector absolute
contraction approach.
The scope 1 and 2 targets are
consistent with reductions
required to limit warming to
below 1.5 degrees Celsius.
The scope 3 targets are
consistent with reductions
to limit warming to below 1.5
degrees Celsius, but do not
meet the SBTi’s minimum
boundary requirements as only
a limited number of scope 3
emission sources are included.
While the targets have been
developed in in-line with this
methodology by using the SBTi’s
publicly available Corporate
Near-Term Criteria and
Corporate Near-Term Tool, the
targets have not been submitted
to or validated by the SBTi.
Achievement of
these targets
do not rely on
offsets.
2Reduce scope 2
(market-based)
GHG emissions
by 42% by 2030
on a FY24 base
year.
Near-
term
100% of
scope 2
8.20%
absolute
increase on
FY24
3Reduce scope 3
GHG emissions
by 42% by 2030
on a FY24 base
year.
Near-
term
100% of
scope 3*
Not reported
due to
the use of
Adoption
provision 4:
Scope 3 GHG
emissions
4Reduce
absolute scope
1, 2, and 3 GHG
emissions by
90% by 2050
on a FY24
base year and
neutralise
residual GHG
emissions
through use
of permanent
removals.
Long-
term
100% of
scope 1,
2, and 3*
Not reported
due to
the use of
Adoption
provision 4:
Scope 3 GHG
emissions
This target has been set using
the Science Based Targets
initiative (SBTi) Corporate
Net-Zero Standard. The target
method used is the cross-
sector absolute reduction
pathway, which is consistent
with the reductions required
to limit warming to below
1.5 degrees Celsius.
The scope 3 boundary
does not meet the SBTi’s
scope 3 minimum boundary
requirements as only a limited
number of scope 3 emission
sources are included.
While the target has been
developed in in-line with
this methodology by using
the SBTi’s publicly available
Corporate Net-Zero Standard
Criteria and Corporate Net-
Tero Tool, the targets have not
been submitted to or validated
by the SBTi.
Achievement
of the 90%
reduction does
not rely on
offsets.
The residual
unabated
10% will be
neutralised
through the use
of permanent
removals and
storage.
* Limited categories only.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 117
Industry-Based Metrics
Emission sourceScopeUnit
Consumption
FY24FY25
Regular petrol 1L125,648.71105,365.89
Premium petrol 1L15,201.7014,057.29
Diesel 1L1,115.992,428.62
Electricity 2kWh117,787.00111,610.99
AFT has not reported HFC-134A refrigerant in FY25 due to this emission source being excluded from
our GHG emissions inventory for FY25 on the basis that this has been identified as de minimis (<1%).
This change does not result in a material effect on our current climate-related disclosures.
Vulnerability To Climate-Related Risks
RiskTypeBusiness activities or assets vulnerable
Extreme weather events may cause
interruptions to AFT’s product
manufacturing and distribution.
PhysicalVulnerability will depend on the nature, scale,
location, and duration of the extreme weather
event(s). Historic extreme weather events
have had a negligible impact on AFT's product
manufacturing and distribution processes.
Changing customer requirements
that favour climate-related and ESG
performance may lead to the loss of
existing market access and the inability
to access new markets.
TransitionCurrently unable to measure vulnerability as the
anticipated impact of this risk is dependent upon
future climate-related and ESG performance
expectations of our customers.
The transition to a low-emissions
economy may lead to a misalignment
between climate change and medical
regulation across jurisdictions.
TransitionCurrently unable to measure vulnerability as the
anticipated impact of this risk is dependent upon
the specific regulation misalignment that occurs.
AFT may fail to appropriately and
accurately report its climate-related
performance.
TransitionCurrently unable to measure vulnerability.
AFT outsources the manufacture and distribution of its products across multiple suppliers and geographies.
This diversification, along with other management responses in place, limits overall vulnerability to climate-
related risks.
Alignment To Climate-Related Opportunities
OpportunityBusiness activities or assets aligned
Opportunity to harness product demand spikes
following extreme weather events such as flooding
or storms.
Currently unable to measure alignment as this
opportunity is reactive in nature and is dependent
on the nature, scale, location, and direction of
extreme weather events.
Opportunity for new products that address new
and exacerbated health issues caused by acute and
chronic climate change impacts.
New products aligned: 0 products
Opportunity for AFT to access to new finance
streams.
% of AFT’s debt facility aligned: 100% may be
aligned
Opportunity for AFT to grow access to new markets
by demonstrating its transition to a low-emissions
economy.
New contracts that included specific climate-related
requirements: 1 contract
AFT does not currently use an internal carbon price.
Management remuneration is not currently linked to climate-related risk and opportunities nor incorporated
into remuneration policies. AFT will continue to monitor this in the future.
WORKING TO IMPROVE YOUR HEALTH | 118
APPENDIX 1: CLIMATE RESILIENCE
To the intended users
Organisation subject to audit:
Audit Criteria:
Responsible Party: AFT Pharmaceuticals Limited
Intended users: Internal and external stakeholders
Registered address: Level 1, 129 Hurstmere Road, Takapuna, Auckland, 0622, New Zealand
Inventory period: 01/04/2024 to 31/03/2025
Conclusion
Basis of verification opinion
Verification
AFT Pharmaceuticals Limited
+ Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard
(2004),
+ GHG Protocol: Scope 2 Guidance,
+ Aotearoa New Zealand Climate Standards (NZ CSs) - issued by External
Reporting Board (XRB),
+ NZ SAE 1: Assurance Engagements over Greenhouse Gas Emissions Disclosure -
issued by External Reporting Board (XRB),
INDEPENDENT ASSURANCE REPORT
Toitū Verification
VERIFICATION EMISSIONS - REASONABLE ASSURANCE
We have obtained all the information and explanations we have required. In our opinion, the emissions,
removals and storage defined in the inventory report, in all material respects:
+ comply with the audit criteria; and
+ provide a true and fair view of the emissions inventory of the Responsible Party for the stated inventory
period.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
We have undertaken a verification engagement relating to gross GHG emissions, additional required
disclosures of gross GHG emissions, and gross GHG emissions methods, assumptions and estimation
uncertainty on pages 114-116 for the financial year ended 31 March 2025 . Additionally, our assurance
engagement does not extend to targets or emissions reduction progress, of which details may be referenced
within pages 1-113, 117-118 and 123-125. The scope of emissions and level of assurance are disclosed below.
The GHG emissions Report provides information about the greenhouse gas emissions of the organisation for
the defined measurement period and is based on historical information. This information is stated in
accordance with the requirements of Greenhouse Gas Protocol: A Corporate Accounting and Reporting
Standard (2004).
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 119
Emphasis of matter
Other matters
Responsible Party's Responsibilities
Responsibilities of verifiers
The Management of the Responsible Party is responsible for the preparation of the GHG disclosure in
accordance with Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard (2004) and
Aotearoa New Zealand Climate Standards (NZ CSs)- Climate-Related Disclosures. This responsibility
includes the design, implementation and maintenance of internal controls relevant to the preparation and
fair presentation of a GHG disclosure that is free from material misstatement, whether due to fraud or error.
Our responsibility as verifiers is to express a verification opinion to the agreed level of assurance on the
inventory report, based on the evidence we have obtained and in accordance with the audit criteria. We
conducted our verification engagement as agreed in the pre-audit engagement letter, which defines the
scope, objectives, criteria and level of assurance of the verification.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit carried out in
accordance with the ISO 14064-3:2019 Standards will always detect a material misstatement when it exists.
The procedures performed on a limited level of assurance vary in nature and timing from, and are less in
extent compared to reasonable assurance, which is a high level of assurance.
Misstatements are differences or omissions of amounts or disclosures, and can arise from fraud or error.
Misstatements are considered material if, individually or in the aggregate, they could reasonably be expected
to influence the decisions of readers, taken on the basis of the information we audited.
The International Standard ISO 14064-3:2019 requires that we comply with ethical requirements and plan
and perform the validation and verification to obtain the agreed level of assurance that the GHG emissions
are free from material misstatements. We are not permitted to prepare the GHG statement as this would
compromise our independence.
Without qualifying our opinion expressed above, we wish to draw the attention of the intended users the
following disclosures on page 115 which, in our judgement, are of such importance that they are
fundamental to user’s understanding of the GHG disclosures :
+ As disclosed in note named Uncertainty on page 115 of the climate statements, GHG quantification is
subject to inherent uncertainty because of incomplete scientific knowledge used to determine emissions
factors and the values needed to combine emissions of different gases.
Other matters that have not been disclosed in the GHG disclosures, that in our judgement are relevant to the
intended users:
Comparative Information
+ The comparative GHG disclosures (that is GHG disclosures for the periods ended 31 March 2024 have not
been the subject of an assurance engagement undertaken in accordance with New Zealand Standard on
Assurance Engagements 1: Assurance Engagements over Greenhouse Gas Emissions Disclosures (‘NZ SAE
1’). These disclosures are not covered by our assurance conclusion.
+ The comparative periods for 31 March 2024 have been assured by Toitū Envirocare in a separate
assurance engagement in accordance with ISO 14064-3: 2019 issued by International Organization for
Standardization.
WORKING TO IMPROVE YOUR HEALTH | 120
Existence of relationships
Verification strategy
Verification level of assurance
GHG PROTOCOL CATEGORIES
GHG SCOPEtCO
2
e
LEVEL OF ASSURANCE
Scope 1 290.33
Reasonable
Scope 2 (location-based)16.19
Reasonable
Scope 2 (market-based)18.74
Reasonable
TOTAL INVENTORY
(location-based)
3
30066..5522
Responsible party's greenhouse gas assertion (claim)
Other information
Other than in our capacity as assurance practitioners, and the provision of the assurance for this
engagement , we have no relationship with, or interests, in the responsible party.
Our verification strategy used a combined data and controls testing approach. Evidence-gathering
procedures included but were not limited to:
+ activities to inspect the completeness of the inventory;
+ interviews of site personnel to confirm operational behaviour and standard operating procedures;
+ reconciling fleet fuel consumption level from reported to supplier's statement;
+ review of electricity consumption;
+ reviewing emission factors for accuracy and appropriateness;
+ evaluating the overall presentation of the selected disclosures.
The data examined during the verification were historical in nature.
AFT Pharmaceuticals Limited has measured its scope1 and 2 greenhouse gas emissions in accordance with
GHG Protocol in respect of its global operations.
The responsible party has a duty for the provision of Other Information. The Other Information may include
climate statements around governance, strategy and risk management, emissions management, targets,
emissions management, reduction plan and other sections within the annual report covering Chair and
Managing Director's reports, Governance, Remuneration, Sustainability, Business Focus Method,
consolidated financial statements and Appendix 2, but does not include the information we verified, and our
auditor’s opinion thereon.
Our assurance engagement does not extend to any other information included, or referred to, in the climate
statements on pages 1-113, 117-118 and 123-125. We have not performed any procedures with respect to the
excluded information and, therefore, no conclusion is expressed on it. Our responsibility is to read and review
the Other Information, and consider whether the Other Information is materially inconsistent with the
information we verified, or our knowledge obtained during the verification.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 121
Independence and quality management standards applied
VERIFIED BYINDEPENDENT REVIEWERENGAGEMENT LEADER
Name:Sen MaBilly ZiemannOsana Robertson
Position: Verifier, Toitū Envirocare Independent reviewerToitū Envirocare
Signature:
Date verification audit: 25 March 2025
Date opinion expressed:
22 May 2025
Location:
Wellington
This assurance engagement was undertaken in accordance with NZ SAE 1 Assurance Engagements over
Greenhouse Gas Emissions Disclosures issued by the External Reporting Board (XRB). NZ SAE 1 is founded on
the fundamental principles of independence, integrity, objectivity, professional competence and due care,
confidentiality and professional behaviour.
We have also complied with the following professional and ethical standards and accreditation body
requirements:
+ ISO 14065: 2020 – General principles and requirements for bodies validating and verifying environmental
information;
+ ISO 14066: 2023 – Greenhouse gases — Competence requirements for teams validating and verifying
environmental information;
+ ISO 17029: 2019 – Conformity assessment — General principles and requirements for validation and
verification bodies;
+ IAF MD4:2023 - For the Use of Information and Communication Technology (ICT) for Auditing/Assessment
Purposes;
+ Joint Accreditation System of Australia and New Zealand Accreditation Requirements
WORKING TO IMPROVE YOUR HEALTH | 122
APPENDIX 2: MATERIAL SUSTAINABILITY MATTERS DEFINITIONS
APPENDIX 2
MATERIAL SUSTAINABILITY MATTERS DEFINITIONS:
AFT has built its Sustainability Framework and ESG reporting programme on a robust process of assessing
what is material to the company. As a publicly listed company, ‘material’ matters are those that a reasonable
person would consider impacting the company’s valuation or the sustainability of our operations.
In line with best practice ESG standards, we also considered those topics that reflect AFT’s most significant
impacts on the economy, environment, and people. We have followed a robust process to identify and
manage the material sustainability matters. Our definitions of them are set out below.
DefinitionDescription
Consumer/patient good health
• Responsive to customer needs, health sector developments,
and tracking consumer trends and purchasing habits.
• Expanding the range of products aimed at enhancing the health
and well-being of consumers.
• Enhancing the proper use of products by healthcare professionals
and patients.
• Creating business value and social impact through the use of
medicines. This topic includes AFT providing products that can
provide alternative pain relief to opioids.
Product quality and safety of
medicines
• Ensuring product safety and quality, including through design,
traceability of materials, manufacture, communications, and
reporting.
• Disclosure of safety information.
• Preventing the distribution of counterfeit drugs.
• Mitigating the risk of a product recall, liability issues, loss of
reputation, and reduced revenue. Relationships with regulators and
regulatory compliance.
Product innovation / R&D
• Creating innovative medicines and medical solutions in areas with
high unmet medical needs. Creating future value for the business.
• Ensuring R&D and testing are done safely and in compliance with all
regulatory requirements.
• Ensuring the mental and physical health of employees and clinical
trial participants. Meeting all animal welfare requirements.
Corporate governance,
compliance, and transparency
• A commitment to comply with all laws, including competition laws
and best practice governance and the recommended governance
codes and rules that apply in each region.
• Monitoring the supply chain for the same.
• Compliance and transparency also refer to cyber security and
privacy.
• The independence and effectiveness of the Board of Directors are
regularly reviewed.
• Directors understand and monitor ESG strategy, metrics, and
performance, including climate-related risks.
Ethical and sustainable supply
chains (including environmental
and labour standards)
• Working with suppliers on sustainability performance and managing
risks for AFT’s brand and operations. This is across the areas of
ethics, labour, environment, health and safety, and management
systems. Specifically on labour, this includes compliance with AFT’s
Modern Slavery policy. On environment, this includes compliance
with our Supplier Code of Conduct, which includes water use.
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 123
DefinitionDescription
Ethical business practices
(including anti-bribery &
corruption, sales and marketing
practices, lobbying)
• Policies and practices to prevent bribery, corruption, counterfeiting,
and conflicts of interest.
• A culture of openness and support with raising concerns.
Ethical marketing - codes of ethics and shareholder transparency.
Employee health, safety,
and wellbeing
• Ensuring compliance with local health and safety regulations.
• Emergency and disaster preparedness, safe machinery, equipment
and facilities, staff training, biosafety, and protection from
hazardous substances and chemicals. Supportive return to work or
post-accident policies.
• Requiring best practices in the supply chain through Supplier Code
of Conduct.
Workforce (Diversity and
Inclusion, Retaining and
Attraction)
• Ensuring equal opportunity regardless of race, nationality, gender,
sexual orientation, age, religion, or disability, including into positions
within management, the Board of Directors. Pay parity assessments
are in place.
• Policies to prevent sexual harassment and workplace bullying, a
safe and supportive complaints process, code of conduct, and
flexible working. Whistleblowing policy. Policies in place to attract
and retain highly skilled employees.
Access to medicines
• Ensuring a stable and resilient supply of products to patients.
Prioritising R&D in areas of specific need.
Climate change
• Climate change mitigation (reducing emissions through the value
chain), climate change adaptation (assessing risks to the value
chain associated with a changing climate), reporting emissions and
climate-related risks, and compliance with regulatory requirements
(Financial Sector (Climate-related Disclosures and Other Matters)
Amendment Act).
Packaging
(consumer and supply chain)
• Taking a life-cycle approach to packaging from manufacture to
disposal, particularly of supply-chain/distribution packaging,
consumer packaging, and hospital packaging
WORKING TO IMPROVE YOUR HEALTH | 124
APPENDIX 2: MATERIAL SUSTAINABILITY MATTERS DEFINITIONS
Directory
AFT is a company incorporated with limited liability under the New Zealand Companies Act 1993
(Companies Office registration number 873005).
Registered Offices Level 1, 129 Hurstmere Road, Takapuna,
Auckland 0622, New Zealand.
+64 9 488 0232
www.aftpharm.com
113 Wicks Road, North Ryde NSW 2113, Australia.
+61 2 9420 0420
Principal Administration Offices New Zealand:
Level 1, 129 Hurstmere Road, Takapuna,
Auckland 0622, New Zealand.
+64 9 488 0232
Australia:
113 Wicks Road, North Ryde NSW 2113, Australia.
+61 2 9420 0420
United Kingdom:
133 Whitechapel High Street, London, UK
Directors
– at the date of this Annual Report
Dr Hartley Atkinson
Marree Atkinson
David Flacks
Andrew Lane
Dr Ted Witek
Allison Yorston
Share Registrar:Computershare Investor Services Limited
Level 2, 159 Hurstmere Road, Takapuna,
Auckland 0622, New Zealand.
+64 9 488 8777
enquiry@computershare.co.nz
Computershare Investor Services Pty Limited, Yarra Falls,
452 Johnston Street, Abbotsford VIC 3067, Australia.
+61 3 9415 4083
enquiry@computershare.co.nz
Financial Auditor Deloitte Limited
Deloitte Centre, 1 Queen Street,
Auckland 1140, New Zealand.
+64 9 303 0700
Greenhouse Gas AuditorToitū Envirocare
The Former, 87 Albert Street, Auckland Central,
Auckland 1010, New Zealand.
0800 366 275
Legal Counsel Harmos Horton Lusk
Level 33, Vero Centre,
48 Shortland Street, Auckland 1140, New Zealand.
+64 9 921 4300
Financial Calendar
Annual Meeting August 2025
Half-year end 30 September 2025
Half-year end results announcementNovember 2025
Financial year end 31 March 2026
AFT PHARMACEUTICALS ANNUAL REPORT 2025 | 125
Level 1, 129 Hurstmere Road
Takapuna
Auckland 0622
New Zealand
+64 9 488 0232
www.aftpharm.com
---
AFT Pharmaceuticals Limited, Level 1, 129 Hurstmere Road, Takapuna, Auckland 0622, New Zealand
Incorporated in New Zealand ARBN:
ARBN 609 017 969
Results for announcement to the market
AFT Pharmaceuticals Limited
Reporting Period 12 months to 31 March 2025
Previous Reporting Period 12 months to 31 March 2024
Currency NZ$
Amount
(000s)
Percentage change
Revenue from continuing operations $208,021 Up 6%
Total Revenue $208,021 Up 6%
Net profit/(loss) from continuing operations $11,962 Down 23%
Total net profit/(loss) $11,962 Down 23%
Interim/Final Dividend
Quoted Equity Securities:
Amount per Quoted Equity Security $0.01600000
Imputed amount per Quoted Equity Security No imputation
Record Date 20/06/2024
Dividend Payment Date 04/07/2024
Current period Prior comparable period
Net tangible assets per Quoted Equity
Security
$0.37 $0.33
A brief explanation of any
of the figures above
necessary to enable the
figures to be understood
Accompanying this announcement are the Group’s audited
consolidated financial statements for the twelve months ended 31
March 2024. These financial statements and the full year results
commentary dated 22 May 2025 provide the balance of
information requirements in accordance with NZX Listing Rules
and Appendix 2.
Pursuant to ASX listing rule 1.15.3 AFT Pharmaceuticals Limited
confirms that it continues to comply with the rules of its home
exchange (NZX Main Board).
Authority for this announcement
Name of person
authorised to make this
announcement
Malcolm Tubby
Contact person for this announcement
Malcolm Tubby, Chief Financial Officer,
AFT Pharmaceuticals Ltd
Contact phone number +64 9 488 0232
Contact email address malcolm.tubby@aftpharm.com
Date of release through MAP
22 May 2025
Audited financial statements accompany this announcement.
---
INVESTOR
PRESENTATION
FY 2025 | 22 MAY 2025
Dr Hartley Atkinson
Managing Director
Malcolm Tubby
Chief Financial Officer
Important Notice
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH2
This presentation has been prepared by AFT Pharmaceuticals Limited (“AFT”), to provide a general overview of the performance of AFT. It is not prepared for any other purpose and
must not be provided to any person other than the intended recipient.
This presentation should be read in conjunction with AFT’s interim financial statements, market releases and other periodic and continuous disclosure announcements, which are
available at www.nzx.com and www.asx.com.au.
All amounts are disclosed in New Zealand dollars (NZ$) unless otherwise indicated.
All references to financial years appearing in this presentation are for the period ending 31 March, unless otherwise indicated. This presentation is not a recommendation, offer or
invitation to acquire AFT’s securities or other form of financial advice or disclosure document.
While reasonable care has been taken in compiling this presentation, none of AFT nor its subsidiaries, directors, employees, agents or advisers (to the maximum extent permitted by
law) gives any warranty or representation (express or implied) of the accuracy, completeness or reliability of the information contained in it nor takes any responsibility for it.
The information in this presentation has not been and will not be independently verified or audited. This presentation may contain certain forward-looking statements and comments
about future events, including with respect to the financial condition, results, operations and business of AFT.
These statements are based on management’s current expectations, which may involve significant elements of subjective judgement and assumptions as to future events which may
or may not be correct, and the actual events or results may differ materially and adversely from these statements. Past performance information given in this presentation is given for
illustrative purposes only and should not be relied upon (and is not) an indication of future performance.
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH33
Agenda
•Key Highlights
•Strategic Initiatives and Pipeline
•Financial Results
•FY26 and LT Outlook
•Questions and Answers
Dr Hartley Atkinson
Managing Director
Malcolm Tubby
Chief Financial Officer
CONTINUED STRENGTH IN
ESTABLISHED ANZ BUSINESS
•FY 25 Total Sales $208.0M (5yr CAGR 14%)
•ANZ Sales $180.9m
•Growth focus with FY 27 $300m Turnover Target
AFT GLOBAL DISTRIBUTION
PARTNERSHIPS
•Agreements in 100+ countries
•Sales in nearly 80 countries
PRODUCT LAUNCHES DRIVING
COMMERCIAL TRACTION
•5 R&D programs currently being
commercialised in multiple countries
•Significant number of agreements in
negotiation
DEVELOPING INNOVATIVE
THERAPIES WITH R&D
•Active R&D pipeline of 8 patented products
•Progression of 24+ off-patent injectables
•Significant Global Market Opportunities
EXPANDING GLOBAL FOOTPRINT
•Europe: UK & EU
•North America: USA & Canada
•Asia: China, Singapore, Malaysia &
Hong Kong
•Africa: South Africa
Building the Foundation for the Next Phase of Growth
Fortifying AFT’s Global Network to Address Un-met Need
Strategic Efforts Continue to Drive Underlying Momentum
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH
5
KEY HIGHLIGHTS
•FY26 revenues reach a new record of $208.0 million up 6% over FY 24 following the neutralization of 1H 25 disruption
•Double digit growth of product sales and royalty income of $207.4; despite lower license income ($0.7 million vs. $8.5 million in FY 24)
•Strong Australian sales growth of 17% offset destocking and Korean doctors’ strike in 1H 25;
•Operating profit of $17.6 million down from $24.2 million with lower license income, 1H 25 disruptions and strategic investments
•Targeting $300 million revenue milestone by the end of FY 27
5
1
EBITDA is a non-GAAP measure of financial performance and is defined and reconciled to NZ GAAP on page 23 of this presentation.
* FY20 Normalised to exclude $9.8m gain on de-recognition of equity accounted investment.
$83.6
$86.7
111.8
121.3
$64.0
$69.0
$80.0
$85.0
$106.0
$113.1
$130.3
$156.6
$195.4
$208.0
$-
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
$160.0
$180.0
$200.0
FY2016FY2017FY2018FY2019FY2020FY2021FY2022FY 2023FY 2024FY2025
NZ$M
AFT GROUP REVENUE
-10.8
-16.4
-$10.1
$6.1
$11.4
$10.7
$20.4
$19.7
$24.2
$17.6
-20
-15
-10
-5
0
5
10
15
20
25
FY 2016FY2017FY2018FY2019FY2020*FY 2021FY2022FY2023FY 2024FY 2025
AFT GROUP OPERATING PROFIT*
Operating profit ex license incomeLicense income
•AFT continues to invest in its product pipeline and commercialization to fuel future commercial market traction and overall growth
•Despite continued investment, shareholder equity has grown steadily since FY19
•Net debt as a proportion of equity has consistently declined since FY 19; $14.5 million in FY 25 from $16.2 million at the end of FY 24
•FY 25 dividend of 1.8cps, an increase from 1.6cps in FY 24
•The inflection is a reflection of AFT’s strengthening financial position and commitment to optimize growth and shareholder return
Inflection Yields a Balance of Growth and Attractive Shareholder Return
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH66
-10,000
10,000
30,000
50,000
70,000
90,000
110,000
FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025
NZ$000
EQUITY AND NET DEBT
EquityDebt
1.0
1.6
1.8
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
FY 2023FY 2024FY 2025
CENTS/SHARE
DIVIDEND
AFT’s Global
Reach
7AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH
Our medicines are
now available in
nearly 80 countries
around the world
Australia: Improved Market Traction with Product and Sales Investments
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH
•Revenues in Australia grew 17% to $127.1 million from $108.2 million in FY 24, led by eyecare, pain relief, iron supplements, and the broad
portfolio of injectables and prescription.
•Growth is primarily driven by increasing market traction of existing products, supplemented by new product launches complementing.
•Australian operating profit increased to $25.5 million up from $15.5 million in FY 24. The notable increased profitability was attributable to
the significant FY 24 investment in new product promotion and the doctor field force.
8
$42.7
$50.8
$65.5
$76.3
$68.3
$76.7
$94.1
$108.2
$127.1
$-
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
FY2021FY2022FY2023 FY 2024 FY2025
NZ$M
REVENUE
$4.0
$21.5
$19.3
$15.5
$25.5
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
FY 2023FY 2024FY 2025
NZ$M
OPERATING PROFT
New Zealand: Growth led by the Pain, Eyecare, Skincare Categories
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH
•Revenues in New Zealand grew 10% to $53.8 million, up from $48.7 million in FY 24, led by strength in eyecare, pain relief, dermatology,
and the broad portfolio of injectables and prescription.
•Operating profit improved to $8.8 million, up from $7.3 million in FY 24, driven by the revenue growth.
9
$3.7
$5.1
$8.3
$7.3
$8.8
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
$6.0
$7.0
$8.0
$9.0
$10.0
FY 2023FY 2024FY 2025
NZ$M
NZ OPERATING PROFT
$22.7
$26.0
$26.0
$27.8
$30.5
$35.1
$44.2
$48.7
$53.8
$(5.0)
$5.0
$15.0
$25.0
$35.0
$45.0
$55.0
FY2021 FY 2022 FY2023 FY 2024 FY 2025
NEW ZEALAND REVENUE
Asia: Emerging Inroads into China
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH
•Revenues in Asia increased to $11.1 million, up from $10.7 million in FY 24. 1H 25 disruptions to Maxigesic IV sales following the
Korean doctors’ strike masks the strong performance in the region. 2H 25 revenue of $6.7 million, up 52% (1H 25 of $4.4 million).
•Revenues in mainland China benefitted from strength of cross border e-commerce sales of iron and vitamin supplements and the
launch of Crystaderm.
•Operating profit declined to $1.8 million from $2.5 million in FY 24 with increased marketing and business development spend.
$3.7
10
* Includes license income
$0.5
$1.3
$0.8
$2.5
$1.8
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
$3.5
FY 2023FY 2024FY 2025
NZ$M
ASIA OPERATING PROFT
$5.4
$4.4
$5.3
$6.7
$4.4
$5.5
$6.8
$10.7
$11.1
$(1.0)
$1.0
$3.0
$5.0
$7.0
$9.0
$11.0
$13.0
$15.0
FY2021 FY 2022 FY2023 FY 2024 FY 2025
ASIA REVENUE
International Expansion – Investing for Long Term Growth in New Markets
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH11
•International revenue from product sales and royalties of $15.4 million declined from
$19.3 million in FY 24, with unplanned customer destocking. This temporary disruption
was resolved and the supply chain outlook continues to improve. Product sales and
royalties in 2H 25 of $9.9 million increased 86% from 1H 25.
•Licensing income of $0.7m declined from $8.5 million in the prior year, which included a
$6.0 million milestone payment following the launch of Maxigesic IV in the US.
•Operating loss of $(7.4) million compared to an $8.5 million profit in FY 24 was largely
attributable to lower license payments, 1H25 disruption and growth investments.
2
3
4
7
9
20
28
43
46
61
73
80
0
10
20
30
40
50
60
70
80
90
FY2014FY2015FY2016FY2017FY2018FY2019FY2020FY2021FY2022FY2023FY 2024FY 2025
COUNTRIES
COUNTRIES WHERE MAXIGESIC IS SOLD AND ORDERED
7.8
6.4
10.8
19.3
15.4
$9.9
$13.1
$11.7
$27.8
$16.0
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
FY2021 FY 2022 FY2023 FY 2024 FY2025
NZ$M
INTERNATIONAL REVENUE
LicensingProduct sales and royalties
Expanding AFT’s Global Footprint and Scale
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH12
AFT PHARM USA
•Selected OTC launches and coordinate licensees and distributors
AFT PHARM UK (70% AFT)
•Launched Combogesic tablets and IV. Launching multiple products
•A significantly expanding pipeline of new products
AFT PHARM EUROPE
•Purchased a number of product licenses from bankrupt German company.
•Launches underway and significantly expanding pipeline of new products
AFT PHARM CANADA (70% AFT)
•To launch Combogesic IV alongside selected OTC offerings
•A significantly expanding pipeline of new products
AFT PHARM SOUTH AFRICA (70% AFT)
•Acquired an existing SAHPRA license (saves 2 years)
•Launch in private hospital market starting FY26
•Secured significant pipeline
AFT PHARM SINGAPORE/AFT PHARM HONG KONG
•Launching further selected AFT products
•A significantly expanding pipeline of new products
New markets for our proprietary IP and in-licensed new products are approaching breakeven
Progressing Research and Development Investments
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH
13
Several programs have exited development and are moving to revenue generation
COMMERCIALISATION EFFORTS
A significant number of licensing agreement discussions underway
Maxigesic – nine dose forms protected by patents.
•Tablets, Oral Liquid, Hot drink & Dry Stick
•Rapid Dissolving Tablet (Patent 2039).
•Intravenous (Patent 2031, 2035)
Crystaderm – antibacterial and anti-acne cream, a proprietary
formulation
Micolette – micro-enema for bowel obstruction
Kiwisoothe – tablets and sachets for gut discomfort and constipation
Capsaicin – cream in two strengths for Osteoarthritis (low) and
Neuropathic pain (high)
*Expensed and capitalised
$7.0
$8.9
$5.4
$6.1
$9.1
$10.4
$11.9
$12.4
$15.0
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
FY 2021FY 2022FY 2023FY 2024FY 2025
NZ$M
RESEARCH AND DEVELOPMENT EXPENSES
A Strong Research and Development Pipeline
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH14
AFT’s positive cashflows have positioned the company well to undertake and secure research and
development projects either alone or in partnership with others
.
PROJECT
1
PATENTPARTNERSHIP / APPLICATION
Hospital injectables
Targeted range of 24 injectablesN/A
Edge Pharmaceuticals. Injectables offer strong
opportunities. (AFT affiliates alone - AU, NZ, SG, MY,
HK, ZA, CA, UK- offer a target market of US$450M)
Antibiotic Eye Drop2037 & 2044 For drug resistant infections:
- Conjunctivitis, Keratitis, Post Kpro prophylaxis
Iron Infusion Injectable2032 + TBC Late-stage development with Hyloris Pharmaceuticals
targeting a US$7.4B global market
2
Pascomer2040/2044 Port Wine Stains (AFT) & Facial Angiofibroma
(Partner)
Strawberry Birthmarks 2041 & 2044Gillies McIndoe & Massey Ventures
Burning Mouth SyndromeTBCHyloris Pharmaceuticals
Vulvar Lichen Sclerosis TBCHyloris Pharmaceuticals
Keloid Scars, topical scars2041Gillies McIndoe and Massey Ventures
NasoSURF for Conscious
Sedation
2036Multiple potential applications
1
In order of maturity
2
. https://www.biospace.com/intravenous-iron-drugs-market-size-to-worth-around-us-7 -41-billion-by-2033
Year to 31 March
2025
$000
Revenue
%
2024
$000
Revenue
%∆%
Revenue
208,021195,411
6%
Gross profit
91,713
44.1%
88,272
45.2%
Operating expenses and other income
(74,065)
35.6%
(64,037)
32.8%
Operating / profit
17,648
8.5%
24,235
12.4%(155)%
Finance expenses and other income
(1,614)
(2,216)
Ta x
(4,634)
(6,410)
Profit after tax
11,400
15,609(27)%
Revenue from product sales and royalties
207,354
186,872
11%
Gross profit from product sales and royalties
91,046
43.9%
79,733
42.7%14%
Operating Profit excluding license income
16,981
8.2%
15,696
8.4%8%
Gross Margin and Operating Profit Offset by Mix Changes and Investment
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH15
•Gross Margin on product sales and
royalties of 43.9% improved by 1 point,
driven by the revenue growth in the higher
margin products.
•The overall Gross Margin which includes
license income reduced to 44% from 45%.
•Operating expenses increased by $10
million over FY 24 due to
•Start-up funding for the new
business hubs in North America,
the United Kingdom, and South
Africa;
•Marketing for new products and
markets; and an
•Increase in research and
development expenditure
Year to 31 March
2025
$000
2024
$000∆%
Current assets (excluding cash)
97,232
93,687
Cash
11,110
12,040
Non current assets
61,473
59,530
Total assets
169.815
165,2572.5%
Current liabilities (excluding interest-bearing liabilities)
43,256
46,068
Current interest-bearing liabilities
-
-
Non current liabilities (excluding interest-bearing liabilities)
3,882
3,194
Non-current interest-bearing liabilities
25,600
28,200
Total liabilities
72,738
77,462(4.9)%
Total equity
97,077
87,795
Total liabilities and equity
169,815
165,257
3.3%
AFT is Well Funded – Well Positioned to Fund Growth Investments
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH
•Net debt at the end of March 2025 was
$14.5 million down from $16.2 million at the
end of FY 24.
•Dividend of 1.8 cents per share, up from 1.6
cents a share in FY 24.
•The dividend recognizes the strong outlook
and normalization of one-off events in 1H25.
16
Year to 31 March
2025
$000
2024
$000∆%
Net cash generated from operating activities
13,178
28,861(54.3)%
Net cash used in investing activities
(6,953)
(9,527)(27.0)%
Net cash (used)/generated from financing activities
(6,811)
(10,633)(35.9)%
Net increase/(decrease) in cash
(586)
8,701
Impact of foreign exchange on cash and cash equivalents
(344)
48
Opening cash and cash equivalents
12,040
3,291
Closing cash and cash equivalents
11,110
12,040(7.7)%
Growth Investment Underpinned by Ongoing Strong Cashflow
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH17
•Continued investment into research and
development projects to fuel long term
growth
•End period cash holdings of $11 .1
million
•Net Debts reduces to $14.5 million
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH
Outlook: Positioned to Drive Future Growth in Both Revenue and Earnings
•AFT is expecting to extend its growth record in FY 26 and is well positioned to achieve its
revenue target of $300 million by the end of FY 27.
•Operations scaled and benefitted from the expanding geographical reach and increasing
product diversification.
•We have a strong program of new products in our core Australasian markets and see
continued opportunities for growth across the existing portfolio.
•Growth will also be supported by product launches especially in international markets
further building momentum in our new business hubs and improved profitability with the
commercialisation of products now in development.
•FY 26 operating profits are anticipated to range from $20 million to $24 million.
18
QUESTIONS AND ANSWERS
AFT was founded over 25 years ago by Dr Hartley and Marree Atkinson. Since then, AFT has remained an Atkinson-family
controlled business and has grown organically into Australia and internationally
The 2015 IPO raised funds to pursue a more aggressive (and loss-making) R&D-led growth strategy. AFT has now returned to
long term profitability as intended, as the company was prior to IPO and its growth and global reach is now accelerating
Appendix 1: History of AFT Pharmaceuticals
19972004200520092013201420152020
AFT founded by
Dr Hartley and
Marree Atkinson
Development of
Maxigesic
commences
First sales into
Australia
Maxigesic registered
in New Zealand and
sales commence
Maxigesic
registered in
Australia
AFT launches the sale
of products into the
SE Asian market
$33m IPO to fund new
R&D development
programmes for
Maxigesic and other
proprietary products
2019
AFT returns to profitability
following a significant
investment period funded
by the 2015 IPO
In FY20 AFT delivers
over $100m of revenue
and operating profit
growth of 87%
Maxigesic sales
commence in
Australia
20
2024
Revenue reaches ~$200m,
AFT products are sold in
reaches 77 countries and it
sets a target for $300m
Appendix 2: Australasian Product Portfolio
AFT has the #1 selling product (Maxigesic) in the Australian para-ibu
1
combo pain relief. AFT’s portfolio includes a
combination of over 150 proprietary, branded and generic products which address the following therapeutic areas:
PainMaxigesic, ParaOsteo, ZoRub OA/HP, Fenpaed,
Combolieve Day/Night
EyecareHylo, Novatears, CromoFresh,
Opti-soothe Wipes/Mask, VitAPOS
VitaminsFerro-liquid, FerroTab, Ferro-F, Ferro-sachets,
Lipo VitC, Lipo VitD, CalciTab
AllergyLoraclear, Histaclear, Fexaclear, Levoclear,
Allersoothe, Lorapaed, Becloclear, Steroclear
GastrointestinalGastrosoothe/Forte, LaxTab, Micolette,
Nausicalm, DiaRelieve
DermatologyCrystaderm, Crystasoothe, Topiderm range, Decazol,
MycoNail
HospitalMaxigesic IV, Injectables
1
Paracetamol and Ibuprofen
21
Appendix 3: AFT Global Product Portfolio
AFT is building the global presence of its proprietary and patented products through its network of licensees and distributors.
It continues the development of its portfolio of repurposed medicines: Maxigesic
1
, Pascomer, NasoSURF, and Crystaderm
PainMaxigesic oral dose forms
-Tablets
-Solution
-Hot drink sachet
-Rapid tablets
-Cold and Flu
-Day& Night
ZoRub Osteo and HP
HospitalMaxigesic IV (intravenous)
NasoSurf – nasal nebuliser drug delivery
DermatologyCrystaderm – selected territories
Gastroenterology
Kiwisoothe
Micolette
1
Paracetamol and Ibuprofen
22
Appendix 4: Reconciliation of EBITDA to GAAP
AFTs standard profit measure prepared under New Zealand GAAP is net profit after tax. AFT has used the non-GAAP profit measure of EBITDA when discussing
financial performance in this document. AFT directors and management believe that this measure provides useful information as it is used internally to evaluate
performance of business units, to establish operational goals and to allocate resources.
Non-GAAP profit measures are not prepared in accordance with NZ IFRS (New Zealand International Financial Reporting Standards) and are not uniformly
defined, therefore the non-GAAP profit measures reported in this document may not be comparable with those that other companies report and should not be
viewed in isolation or considered as a substitute for measures reported by AFT in accordance with NZ IFRS.
23
Year to 31 March
2025
$000
2024
$000
Net profit after tax attributable to the owners of the parent
11,962
15,609
Less: Finance income
(25)
(66)
Add back: Interest costs
2,821
3,686
Add back other finance loss/(gain)
(1,182)
(1,404)
Add back: Depreciation
994
(1,003)
Add back: Amortisation
1,675
(1,010)
Add back: Income tax expense/(benefit)
4,634
6,410
EBITDA
20,879
26,248
FOR MORE INFORMATION
Dr Hartley Atkinson
Managing Director
Email: h
artley.atkinson@aftpharm.com
Malcolm Tubby
Chief Financial Officer
Email: m
alcolm.tubby@aftpharm.com
AFT Pharmaceuticals Limited
Level 1, 129 Hurstmere Road
Takapuna, Auckland 0622
New Zealand
www.aftpharm.com
---
Distribution Notice
22 May 2025
Section 1: Issuer information
Name of issuer AFT Pharmaceuticals Limited (“AFT”)
Financial product name/description Final Dividend
NZX ticker code AFT
ISIN (If unknown, check on NZX
website)
NZAFTE0001S4
Type of distribution
(Please mark with an X in the
relevant box/es)
Full Year X Quarterly
Half Year Special
DRP applies
Record date 20/06/2025
Ex-Date (one business day before the
Record Date)
19/06/2025
Payment date (and allotment date for
DRP)
04/07/2025
Total monies associated with the
distribution
$1,887,593
Source of distribution Retained earnings and Income available for distribution
Currency NZD
Section 2: Distribution amounts per financial product
Gross distribution
1
$0.01800000
Gross taxable amount
2
$0.01800000
Total cash distribution
3
$0.01800000
Excluded amount (applicable to listed
PIEs)
N/A
Supplementary distribution amount N/A
Section 3: Imputation credits and Resident Withholding Tax
4
Is the distribution imputed No imputation
If fully or partially imputed, please
state imputation rate as % applied
N/A
1
“Gross distribution” is the total cash distribution plus the amount of imputation credits, per financial product, before the deduction of
Resident Withholding Tax (RWT).
2
“Gross taxable amount” is the gross distribution minus any excluded income.
3
“Total cash distribution” is the cash distribution excluding imputation credits, per financial product, before the deduction of RWT.
This should include any excluded amounts, where applicable to listed PIEs.
4
The imputation credits plus the RWT amount is 33% of the gross taxable amount for the purposes of this form. If the distribution is
fully imputed the imputation credits will be 28% of the gross taxable amount with remaining 5% being RWT. This does not constitute
advice as to whether or not RWT needs to be withheld.
Imputation tax credits per financial
product
N/A
Resident Withholding Tax per
financial product
$0.00594000
Section 4: Distribution re-investment plan (if applicable)
Not applicable
Section 5: Authority for this announcement
Name of person
authorised to make
this announcement
Malcolm Tubby
Contact person for this
announcement
Malcolm Tubby
Contact phone number +64 9 488 0232
Contact email address malcolm.tubby@aftpharm.com
Date of release through MAP
22/05/2025
Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.