This ASX pharmaceutical company is paying its first dividend, over 25 years since its founding

ASX pharmaceutical company AFT Pharmaceuticals (ASX:AFP) is paying investors a dividend for the first time since it was founded in 1997.

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A rare ASX pharmaceutical company

There aren’t many ASX pharmaceutical companies that pay dividends but AFT is one of them. The company unveiled its results for FY23 (which is the 12 months to March 31 because it is a New Zealand-based entity) and announced it was paying 1.1c per share. This is far from the highest yield (at just 0.3%) and is just 11% of NPAT (below the 20-30% threshold the company had indicated).

The board told shareholders a below-policy pay out was appropriate this year given the company wanted to invest in growth while reducing debt. All this said, it is a milestone for the AFT nonetheless.

Solid results

As for AFT’s results, operating revenues were 20% up at $156.6m and it made a $10.7m NPAT. It told shareholders to expect a $22-$24m operating profit in FY24 and this does not include ~$6m of licensing income expected in the 1st half of CY24 upon the launch of Maxigesic IV in the USA.

AFT told shareholders its portfolio now consists of over 150 medicines and plans to launch a further 68 by the end of FY26.

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