AFT Pharmaceuticals Ltd (AX:AFP) reported H117 results on 24 November 2016, which marked a slowdown in its previously aggressive growth in preceding periods, largely due to supply issues and a slowdown in demand in New Zealand (NZ$13.5m sales). Despite this, supply issues with partners appear to be resolved, as underlying demand in Australia increased 17% (NZ$14.6m sales), and the demand for Maxigesic in Europe and the Middle East exceeds the expectations of licensing partners (NZ$1.2m sales).
Revenue flat y-o-y due to manufacturing bumps
Revenue for the first half of FY17 was NZ$29.8m, or a 0.8% increase year-on-year. The slowdown in growth was due to disruption in the supply of two products, one in Australia and one in New Zealand, which had negative impacts on sales of 11% and 4% respectively. This was compounded by a reduction in demand in the pharmacy market as a whole of an estimated 4-8%, likely due to seasonal variability.
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