AFT delivers double digit revenue growth and record earning
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
21 MAY 2026
FINANCIAL RESULTS FOR THE YEAR TO 31 MARCH 2026
AFT delivers double digit revenue growth and record earnings
Operating profit of $24.4 million ahead of the guidance range
HIGHLIGHTS
• Full year operating revenue up 22%
1
to $254.7 million (FY25: $208.0 million), driven
by double-digit sales growth across all territories
• Product sales and royalties up 21% to $251.6 million (FY25: $ 207.4 million), supported
by growth in Australia (19%), a 66% lift in international and 41% in Asia
• Licensing income of $3.1 million (FY25: $0.7 million), reflecting increasing
momentum in out-licensing and milestone activity
• EBITDA of $28.8 million (FY25: $20.9 million) and operating profit of $24.4 million
(FY25: $17.6 million) as earnings growth offset significant investment in international
business hubs and R&D
• Net profit after tax increased 24% to $14.1 million (FY25: $11.4 million)
• Balance sheet remains strong. Net debt of $38.6 million (FY25: $14.5 million), as the
company expanded working capital and acquired existing products in South
Africa reflecting continued investment in growth
• Dividend of 2.5 cents per share declared (FY25: 1.8 cents per share), reflecting
confidence in the company’s outlook
• Ongoing significant investment with FY27 guidance for increased operating profit
of $28 million to $32 million; targeting $300 million plus revenue for FY27
AFT Pharmaceuticals (NZX: AFT; ASX: AFP), New Zealand’s largest locally based
pharmaceuticals company
2
, today announces it is targeting revenue in excess of
$300 million in FY27 after reporting double digit growth across all its territories in the
year to end of March 2026
It also announces FY26 operating profit at a record of $24.4 million and ahead of its
guidance range of $20 million - $24 million
AFT Pharmaceuticals Chair David Flacks said: “AFT has delivered another strong result,
reflecting the strength of our core Australasian business and the benefits of our
increasing geographic and product diversification.
“We have continued to invest for long-term value creation - progressing international
hubs, executing licensing opportunities, and advancing a portfolio of valuable
innovative products that can support our ambition to exceed $300 million sales this
financial year.”
Co-Founder and Managing Director Dr Hartley Atkinson said: “This result demonstrates
continued execution against our strategy. We are growing in our established markets,
1
All increases are against the FY25 result unless otherwise stated
2
https://tin100.com/reports/2025-tin-report/
2
and we are building a wider, more diversified AFT through disciplined international
expansion, out-licensing the intellectual property from our R&D programs, and further
advancing our efforts to address unmet clinical needs. Reflecting this confidence, we
remain on track to deliver on our $300 million revenue goal for FY27.”
FINANCIAL RESULTS
Total revenue, which includes licensing income, rose 22% to $254.7 million from $208.0
million in FY25. Growth was driven by: i) continued momentum in Australia; ii) steady
expansion in New Zealand; iii) a growing contribution from AFT’s International and
Asian hubs as they scale and iv) a return to normal patterns of trading in Asia and
International markets.
Australasia remained the cornerstone of AFT’s earnings and cash generation, growing
revenue by 16% to reach $210.5 million. In the Australian market we saw broad-based
strength across OTC brands and ongoing uptake across prescription medicines. The
growth was also supported by a steady stream of new launches and portfolio
expansion which remains a key focus. New Zealand delivered steady growth with
continued opportunities across key categories including allergy, dermatology and
eyecare.
International and Asian markets recorded a stronger year of product sales and
royalties, respectively rising by 66% (to $28.5 million) and 41% (to $15.6 million)
reflecting ongoing execution on expansion initiatives. However, were it not for some
shipping delays related to the geopolitical tensions, revenue growth would have been
stronger.
Licensing income rose to $3.1 million as AFT progressed multiple out-licensing
agreements and expanded its pipeline of negotiations across key assets, a rise that is
consistent with the ongoing progression of commercialisation of the near-term
development portfolio.
Gross margin on product sales and royalties decreased slightly to 42.7% (FY25: 43.9%),
reflecting primarily portfolio mix and foreign currency but AFT sees this margin
improving in FY27 and onwards.
Operating expenses increased as planned as AFT continued to fund growth initiatives,
including: (i) start-up and ongoing scaling costs for international hubs; (ii) brand and
market entry investments to support launches; and (iii) higher R&D expenditure to
advance late-stage projects and new pipeline initiatives. However, and importantly,
overall expenses were lower as a proportion of sales at 33.8% of sales (FY25 35.6%) as
increased operating leverage is achieved.
The resulting operating profit was $24.4 million (FY25: $17.6 million), and EBITDA was
$28.8 million (FY25: $20.9 million). Net profit after tax was $14.1 million (FY25: $11.4
million) and included increasing amortisation on some existing projects.
Further details on the performance of AFT’s individual markets is contained in the nnual
Report also released to the NZX and ASX today.
INTERNATIONAL DEVELOPMENT
AFT continued to advance its strategy of building international business hubs in
markets that share similar commercial and regulatory dynamics to its Australasian
operations.
3
During FY26, the company continued to expand its footprint across the UK, Europe,
North America, and South Africa, progressing each hub along the path from
establishment to development.
In the United Kingdom, AFT continued to broaden distribution of Maxigesic tablets
(marketed as Combogesic) from Boots and SuperDrug to now include independent
pharmacies. The initial launches of Combogesic IV in several London NHS hospitals
continued to progress, with sales momentum linked to formulary inclusion.
In Europe, AFT is making progress with its portfolio of injectables acquired from an
insolvent company in 2025, with updated regulatory dossiers and licenses now
supporting planned EU launches that are expected to make a meaningful
contribution in FY27.
In North America, AFT launched Combogesic IV in Canada during FY26 and has a
healthy pipeline of further product launches planned. AFT has taken back the the
distribution of Combogesic tablets and is relaunching them in the new financial year.
In the US, Combogesic Rapid will be distributed through Mark Cuban's CostPlus
platform, reaching all 50 states, while Hikma continues to distribute Combogesic IV.
AFT's consumer range — including Liposachets, Kiwisoothe, and Optisoothe — is
available through Amazon with additional channels being finalised and expected to
be commercialised during the FY27 time period.
AFT South Africa has successfully integrated several inventory products acquired from
Pharma Dynamics. In addition, after year end we f inalised the purchase of a product
portfolio, which has been a significant undertaking. With three new staff added across
finance, logistics, and regulatory affairs, AFT SA is well positioned to make a strong
contribution in FY27 to the International business.
RESEARCH AND DEVELOPMENT
FY26 R&D expenditure (expensed and capitalised) was $18 million (FY25: $15 million),
reflecting continued investment across a diversified portfolio spanning pain,
dermatology, eyecare and injectables. We intend to further increase R&D
expenditure to $25 million in FY27 in order to execute the larger R&D portfolio including
the late-stage injectable iron project, which requires a large clinical study.
AFT progressed multiple late-stage programs and expanded the depth of its pipeline
during the year, including:
• A new partnership with Stablepharma UK to develop room-temperature
storage versions of several fridge-stored injectables — opening a potential
global market worth in excess of US$6 billion
3
. The first two fridge free drugs are
in development and progressing well.
• Intravenous iron: Following a positive Phase III trial, AFT and its development
partners progressed preparations for a large global study involving 1,366
patients of numerous ethnicities across multiple geographies (planned New
Zealand, China, India, Japan, Armenia, Europe and USA) and filed three
Data on file
4
https://www.biospace.com/intravenous-iron-drugs-market-size-to-worth-around-us-7-41-
billion-by-2033
4
additional patent applications to further strengthen protection of the asset. The
project targets an addressable market estimated at US$7.41 billion
4
.
• China out-licensing: AFT secured an out-licensing agreement for its novel IV iron
therapy for China with Chengdu-based Grand Life Sciences Group, featuring
upfront, development and sales milestone payments and recurring royalties,
with a contribution to global development funding.
• Pascomer: Regulatory resubmissions for the Facial Angiofibroma indication
have started this calendar year after adding a new contract manufacturing
site to address previous regulatory manufacturing questions. Additionally, the
Port Wine Stain Phase II study will be underway in both Spain and USA this year.
• Migraine Treatment: a formulation project is underway in order to file a dossier
in the 2027 calendar year.
• Antibiotic eyedrop: AFT advanced the IND submission pathway with the US
Food and Drug Administration (FDA) to support first-in -human studies.
• Topical strawberry birthmarks: AFT advanced its pre-IND submission and
incorporated FDA feedback to guide the IND pathway and Phase I-III study
designs.
• Topical Keloid Scars: Formulation work is underway.
• Maxigesic and Maxigesic IV paediatric: AFT advanced preparations to
commence a Maxigesic and a Maxigesic IV study for paediatric populations
following FDA approval of the paediatric study plans with the first study site
starting in June.
• Injectables pipeline: AFT continued to progress the Sinoject pipeline, including
filing regulatory dossiers for at least five injectables before the end of FY27.
• Two developments primarily aimed at the Australian market with high sales
potential. Clinical studies on these products are due to completed this
calendar year, which, provided successful, will allow subsequent regulatory
filing.
• A new agreement with a Massey Ventures to develop a novel injectable
formulation treatment which would compete in a market estimated presently
to be around US$2 billion growing to US$3 billion to 3.7 billion by 2032-2034
5
.
AFT also continued to execute an active out-licensing and in-licensing programme,
progressing multiple agreements and advancing regulatory dossiers across the
portfolio to support a multi-year launch schedule.
BALANCE SHEET AND DIVIDEND
AFT remains well funded. Net debt at 31 March 2026 was $38.6 million (31 March 2025:
$14.5 million) and remains within the company’s target leverage range. This increase
partly reflects the decision to increase inventory, to support growth and ensure
continuity of supply given the current geopolitical tensions. I nventory acquired with
the new South African pharmaceutical licenses, also contributed to the increase. The
company secured a new and increased facility of $50 million in December 2025.
4
https://www.biospace.com/intravenous-iron-drugs-market-size-to-worth-around-us-7-41-billion-by-2033
Data on file
5
Reflecting the strength of the business, Directors have declared a dividend of 2.5 cents
per share (FY25: 1.8 cents per share).
OUTLOOK
AFT expects to extend its growth record in FY27 as it drives towards its revenue goal of
at least $300 million through: (i) continued expansion in Australasian markets; (ii) a
strong programme of launches across International hubs; (iii) increasing contributions
as those hubs scale, with the UK and South Africa expected to make a meaningful
contribution to earnings in the current financial year; (iv) continued progress in R&D
and regulatory milestones; and (v) an active licensing programme that starts to
monetise AFT’s intellectual property and broadens the company’s geographic reach.
“We are well positioned to continue to grow by focusing on what we do best -
identifying unmet clinical needs, in-licensing or developing medicines, and
commercialising them to improve health globally. Importantly, our increasing
geographic and product diversification supports the resilience of the business,” Dr
Atkinson said.
AFT will continue significant investment this financial year and expects FY27 operating
profit to reach between $28 million to $32 million.
Released for and on behalf of AFT Pharmaceuticals Limited by Malcolm Tubby, Chief
Financial Officer.
For more information:
Investors Media
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
6
. 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.
---
2026
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.”
Contents
FY26 Financial and Strategic Highlights 2
Chair and Managing Director’s Report 4
Business Focus:
• Regional Performance 8
• Research and Development 12
Sustainability 14
Reconciliation of EBITDA to GAAP 36
Governance: 37
• An Experienced and Skilled Board 38
• Our Senior Management Team 40
• Corporate Governance Statement 42
Remuneration 59
Consolidated Financial Statements 64
Statutory Disclosures 98
Appendices:
• Appendix 1 – Climate Resilience 103
• Appendix 2 – The Material Sustainability Matters Definitions 114
Directory and Financial Calendar 116
This report provides a summary review of AFT’s
operational and financial performance for the year
to 31 March 2026. It should be read in conjunction
with the company’s financial statements on pages
64 to 97 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
Chairman Managing Director
We are extending
our reach around the
world, building our product
range, and growing our
research and development
portfolio to extend our record
for delivering long-term
sustainable growth and better
health outcomes globally.
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 1
Double digit revenue growth across
all territories and record earnings
.
$
254.7m
Total revenue, rose 22% from $208.0 million
in FY25, with strong growth in all territories
and rising license income
$
24.4m
Operating profit rose 39% from
$17.6 million in FY25 as earnings growth
offset significant investment
in international business hubs and R&D
$
38.6m
Net debt* at 31 March 2026
within the company target range
2.5 cents
Dividend per share,
up 0.7 cents on 1.8 cents in FY25
OUR STRATEGIC ACHIEVEMENTS
Our products our now
sold in 87
countries
up from 80 in FY25
We are
scaling our
international
business hubs
with the UK and South Africa
flagged to contribute in FY27
Multiple
out-licensing
agreements
progressing with broad
programme of negotiations
across key assets
We extended our
R&D portfolio, with
seven projects
being commercialised in
multiple countries
* Net debt is net interest bearing liabilities less cash and cash equivalents.
WORKING TO IMPROVE YOUR HEALTH | 2
FINANCIAL AND STRATEGIC HIGHLIGHTS
AUSTRALIA
Revenue:
$150.8 million
up 19%
Operating profit
$30.3 million
up 19%
Key growth drivers:
Broad based growth across
OTC and pharmacy brands.
NEW ZEALAND
Revenue:
$59.7 million
up 11%
Operating profit
$9.4 million
up 7%.
Key growth drivers:
Eyecare, pain relief,
dermatology and prescription
ASIA
Revenue:
$15.6 million
up 41%
Operating profit
$3.8 million
up 111%.
Key drivers:
Normalisation of trading after
1H 25 disruptions
INTERNATIONAL
Revenue:
$28.5 million
up 78%
Operating loss
$6.0 million
down 19%
Key drivers:
Normalisation of trading and
scaling of AFT’s international
business hubs
A Growing Contribution From Our International Operations
FY26 RevenueFY25 Revenue
New Zealand 24%
Australia 59%
Asia 6%
International 11%
Extending Our Decades Long Record of Growth
AFT Pharmaceuticals Revenue
New Zealand 26%
Australia 61%
Asia 5%
International 8%
$260
$240
$220
$200
$180
$160
$140
$120
$100
$80
$60
$40
$20
$-
NZ$ MILLION
2016 2017 2018 2019 2020 2021 20222023202420252026
$69
$64.0
$85
$69.0
$80.0
$85.0
$100.6
$113.1
$130.3
$195.4
$121.3
$86.7
$208.0
$156.6
$254.7
$139.80
$86.7$114.9
FULL FINANCIAL YEARFIRST HALF FINANCIAL YEARSECOND HALF FINANCIAL YEAR
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 3
FINANCIAL AND STRATEGIC HIGHLIGHTS
We expect to
extend our growth
record in FY27 as we
drive towards our revenue
goal of at least $300 million.
WORKING TO IMPROVE YOUR HEALTH | 4
Setting our sights on $300 million revenue
Dear Shareholders,
AFT has delivered another strong result.
We saw double digit growth across all our
territories, delivered a record operating profit
of $24.4 million, ahead of guidance and 39% ahead
of the prior year’s $17.6 million. And now, in the new
financial year (FY27), we are confident of hitting
the aspirational revenue target we set in 2024
of more than $300 million.
We have achieved this result — the latest in an
unbroken record of year-on-year revenue growth —
through continued investment for long-term value
creation, including progressing our international
hubs, executing licensing opportunities, and
advancing a portfolio of innovative products that
can support our growth ambitions.
It is a result that demonstrates continued
execution against our strategy. We are growing
in our established markets, and we are building
a wider, more diversified AFT through disciplined
international expansion, out-licensing the
intellectual property from our research and
development programmes and further advancing
our efforts to address unmet clinical needs.
Financial Results
Total revenue, which includes licensing income, rose
22% to $254.7 million from $208.0 million in FY25.
Growth was driven by: i) continued momentum in
Australia; ii) steady expansion in New Zealand; iii)
a growing contribution from AFT’s international and
Asian hubs as they scale and iv) a return to normal
patterns of trading in Asia and International markets.
Australasia remained the cornerstone of AFT’s
earnings and cash generation growing revenue
by 16% to reach $210.5 million. In the Australian
market we saw broad-based strength across OTC
and pharmacy brands and ongoing uptake across
prescription medicines. The growth was also
supported by a steady cadence of new launches
and portfolio expansion, which remains a key
focus. New Zealand delivered steady growth with
continued opportunities across key categories
including allergy, dermatology and eyecare.
International and Asian markets recorded
a stronger year, respectively rising by 66%
(to $25.5 million) and 41% (to $15.6 million) on
product sales and royalties reflecting ongoing
execution on expansion initiatives. However, were
it not for some shipping delays related to the
geopolitical tensions, revenue growth would
have been stronger.
Licensing income rose to $3.1 million as AFT
progressed multiple out-licensing agreements and
expanded its pipeline of negotiations across key
assets, a rise that is consistent with the ongoing
progression of commercialisation of the near-term
development portfolio.
AFT Operating Profit*
* FY20 normalised to exclude non-cash valuation gain
$25
$20
$15
$10
$5
$0
-$5
-$10
-$15
$20
NZ$ MILLION
2016 2017 2018 2019 2020 2021 20222023202420252026
OPERATING PROFIT (EX LICENSE INCOME) LICENSE INCOME
$6.1
$19.7
-$10.1
$11.4
-$10.8
$10.7
-$16.4
$24.2
$17.6
$20.4
$24.4
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 5
CHAIR AND MANAGING DIRECTOR’S REPORT
Gross margin on product sales and royalties
decreased slightly to 42.7% (FY25: 43.9%), reflecting
primarily portfolio mix and foreign currency but AFT
sees this margin improving in FY27 and onwards.
Operating expenses increased as planned as AFT
continued to fund growth initiatives, including: (i)
start-up and ongoing scaling costs for international
hubs; (ii) brand and market entry investments to
support launches; and (iii) higher R&D expenditure
to advance late-stage projects and new pipeline
initiatives. However, and importantly, overall expenses
were lower as a proportion of sales at 33.8% of sales
(FY25 35.6%) as increased operating leverage is
achieved. The resulting net profit after tax was
$14.1 million (FY25: $11.4 million) and included
increasing amortisation on some existing projects.
International Development
AFT continued to advance its strategy of building
international business hubs in markets that share
similar commercial and regulatory dynamics to its
Australasian operations.
During FY26, the company continued to expand
its footprint across the UK, Europe, North America,
and South Africa, progressing each hub along the
path from establishment to development.
In the United Kingdom, AFT continued to broaden
distribution of Maxigesic tablets (marketed as
Combogesic) from Boots and SuperDrug to
now include independent pharmacies. The initial
launches of Combogesic IV in several London
NHS hospitals continued to progress, with sales
momentum linked to formulary inclusion.
In Europe, AFT is making progress with its portfolio
of injectables acquired from an insolvent company in
2025, with updated regulatory dossiers and licenses
now supporting planned EU launches that are
expected to make a meaningful contribution in FY27.
In North America, AFT launched Combogesic IV
in Canada during FY26 and has a healthy pipeline
of further product launches planned. AFT has taken
back distribution of Combogesic tablets
and is relaunching them in the new financial year.
In the US, Combogesic Rapid will be distributed
primarily through Mark Cuban’s CostPlus platform,
reaching all 50 states, while Hikma continues to
distribute Combogesic IV. AFT’s consumer range —
including Liposachets, Kiwisoothe, and Optisoothe
— is available through Amazon with additional
channels being finalised and expected to be
commercialised during the FY27 time period.
In South Africa, AFT has successfully integrated
several inventory products acquired directly from
Pharma Dynamics. In addition, after year end we
also finalised the purchase of a product portfolio.
Research and Development
FY26 R&D expenditure (expensed and capitalised)
was $18 million (FY25: $15 million), reflecting
continued investment across a diversified portfolio
spanning pain, dermatology, eyecare and injectables.
We intend to further increase R&D expenditure to
$25 million in FY27 in order to execute the larger
R&D portfolio including the late-stage injectable iron
project which requires a large clinical study.
More detail on the programme is covered on pages
12 and 13 of this report. However, highlights of the
year include:
• A new partnership with Stablepharma UK
to develop room-temperature storage versions
of several fridge-stored injectables — opening
a potential global market worth in excess of
US$6 billion
1
. The first two fridge-free drugs
are in development and progressing well.
• Intravenous iron: Following a positive
Phase III trial, AFT and its development partners
progressed preparations for a large global
confirmatory study involving 1,366 patients
across multiple geographies (planned
New Zealand, China, India, Japan, Armenia,
Europe and US) and filed three additional patent
applications to further strengthen protection
of the asset. The project targets an addressable
market estimated at US$7.41 billion
2
.
• Pascomer: Regulatory resubmissions for the
Facial Angiofibroma indication have started
this calendar year after adding a new contract
manufacturing site to address previous regulatory
manufacturing questions. Additionally, a Port
Wine Stain Phase II study will be underway in
both Spain and USA this year.
• Migraine Treatment: a formulation project is
underway in order to file a dossier in the 2027
calendar year.
• Antibiotic eyedrop: AFT advanced the IND
submission pathway with the US Food
and Drug Administration (FDA) to support
first-in-human studies.
We also continued to execute an active
out-licensing and in-licensing programme,
progressing multiple agreements and advancing
regulatory dossiers across the portfolio to support
a multi-year launch schedule.
1
Data on file.
2
https://www.biospace.com/intravenous-iron-drugs-market-size-to-worth-around-us-7-41-billion-by-2033
WORKING TO IMPROVE YOUR HEALTH | 6
CHAIR AND MANAGING DIRECTOR’S REPORT
Balance Sheet and Dividend
AFT remains well funded. Net debt at 31 March
2026 was $38.6 million (31 March 2025:
$14.5 million) and remains within the company’s
target leverage range. This increase partly reflects
the decision to increase inventory, to support
growth and ensure continuity of supply given the
current geopolitical tensions. Inventory acquired
with the new South African pharmaceutical licenses,
also contributed to the increase. The company
secured a new and increased facility of $50 million
in December 2025.
Reflecting the strength of the business, Directors
have declared a dividend of 2.5 cents per share
(FY25: 1.8 cents per share).
Outlook
We expect to extend our growth record in FY27
as we drive towards our revenue goal of at least
$300 million through: (i) continued expansion in
Australasian markets; (ii) a strong programme of
launches across International hubs; (iii) increasing
contributions as those hubs scale, with the UK and
South Africa expected to make a contribution to
earnings in the current financial year; (iv) continued
progress in R&D and regulatory milestones; and
(v) an active licensing programme that starts to
monetise AFT’s intellectual property and broadens
our geographic reach.
We are well positioned to continue to grow by
focusing on what we do best - identifying unmet
clinical needs, in-licensing or developing medicines,
and commercialising them to improve health
globally. Importantly, our increasing geographic
and product diversification supports the resilience
of the business.
We will continue to make significant investment
this financial year and we expect FY27 operating
profit to reach between $28 million to $32 million.
We thank shareholders for their continuing support,
our customers and our partners for the trust they
put in AFT and its products and our team for their
continuing commitment and hard work. We look
forward to updating you on our progress in our
July quarterly update.
David Flacks Dr Hartley Atkinson
Chair Managing Director
A FAREWELL TO
CFO MALCOLM TUBBY
After many years of dedicated service,
our Chief Financial Officer Malcolm Tubby retires
at the end of this month, and we wish to take this
opportunity to acknowledge his extraordinary
contribution to AFT.
Malcolm has been with AFT since its earliest days
— a time when the company operated on a very
different scale to the one it does today. Over the
course of his tenure, he has played a key role in
shaping AFT's financial strategy and governance
as the company grew from a small New Zealand
operation into a business selling across 87
countries, dual-listed on the NZX and ASX, and
tracking toward $300 million in annual revenue.
That journey — from the garage to the global stage
— is a remarkable one, and Malcolm was a key
architect of its financial foundations.
We are deeply grateful for his professionalism, his
integrity, and his unwavering commitment to the
company and everyone in it. Malcolm's steady hand
has given the Board, management, investors, and
partners alike a great deal of confidence over the
years, and his legacy will endure in the strength
of the business he helped build.
We are deeply grateful for his
professionalism, his integrity and his
unwavering commitment to the company...
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 7
CHAIR AND MANAGING DIRECTOR’S REPORT
AFT New Zealand
Head office
AFT Australia
AFT Singapore/
Malaysia
AFT South Africa
AFT USA
AFT UK
AFT EuropeAFT Canada
AFT Hong Kong
Launched
Launch Pending
AFT’s Global Reach
A decades-long record of growth and global expansion
NZ$ MILLION
$160
$120
$80
$40
$0
202420252026
$150.8
Australia
SUSTAINED MOMENTUM IN OUR LARGEST MARKET
Australia continued to be the primary driver
of group performance in FY26, supported
by broad-based strength across key OTC
and pharmacy brands and ongoing uptake
in prescription medicines.
Growth remained led by our established
eyecare, and pain relief medicines as well as iron
supplements, the liposomal vitamin range and
AFT’s expanding portfolio of injectables and
prescription products.
New product launches complemented performance
and support longer-term organic growth.
AFT’s active business development programme
continues to add to the pipeline, alongside ongoing
investment in our proprietary R&D portfolio.
We continue to see opportunities to improve
operating leverage in Australia as the business scales.
$108.2
$127.1
AUSTRALIAN REVENUE:
Continuing to offer strong potential
$30.3m
(FY25: $25.5 million)
AUSTRALIAN
OPERATING
PROFIT
WORKING TO IMPROVE YOUR HEALTH | 8
REGIONAL PERFORMANCE
New Zealand delivered another year of steady
growth, supported by continued momentum across
key categories including eyecare, pain relief and
dermatology, and the ongoing expansion of our
hospital injectables and prescription portfolio.
The New Zealand business remains an important
contributor to group cash generation and provides
a strong base to support AFT’s investment in
international expansion and R&D initiatives.
New Zealand
SEEING BROAD-BASED GROWTH
$60
$45
$30
$15
$-
202420252026
NZ$ MILLION
$48.7
$53.8
ASIA
RETURN TO NORMALISED TRADING;
BUILDING MOMENTUM IN CHINA
NZ$ MILLION
$16
$12
$8
$4
$-
202420252026
$10.7
$11.1
Asia delivered a stronger FY26 result, reflecting
a return to normalised trading conditions following
the one-off disruption in 1H25 (including the doctors’
strike in South Korea that impacted demand for
Maxigesic IV). This normalisation, combined with
ongoing growth initiatives, supported improved
regional performance through FY26.
China continues to be a key strategic focus, supported
by continued growth in iron and vitamin supplements
via cross-border e-commerce and an expanding
portfolio of launches and distribution agreements.
During FY25 AFT’s antiseptic cream Crystaderm
was launched into mainland China and additional
distribution agreements were completed for multiple
products, supporting a broader launch schedule.
NEW ZEALAND REVENUE:
Steady expansion in our home market
$9.4m
(FY25: $8.8 million)
NEW ZEALAND
OPERATING
PROFIT
ASIA REVENUE:
Recovery in Korea, and progress in China.
$15.6
$3.8m
(FY25: $1.8 million)
ASIA
OPERATING
PROFIT
$59.7
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 9
REGIONAL PERFORMANCE
International performance improved significantly
in FY26, reflecting the continued recovery from
the customer de-stocking that impacted FY25
and the ongoing scaling of AFT’s international
business hubs. As these platforms moved from
establishment to development, the focus remained
on building sustainable revenue streams and
positioning the hubs to contribute to earnings.
South Africa
AFT South Africa has successfully integrated
several inventory products acquired from Pharma
Dynamics. In addition, after year end we finalised
the purchase of a product portfolio, which has
been a significant undertaking. The company is in a
position to make a contribution in FY27.
AFT SA is driving out costs from the business
and driving efficiencies. Including the Pharma
Dynamics hospital portfolio, it now has a portfolio
of 18 products, up from four at the end of
September 2026, demonstrating the expanding
footprint and acceleration in the business. AFT SA
has recruited three new staff in finance, logistics
and regulatory affairs to maintain this momentum.
United Kingdom and Europe
In the UK, AFT extended distribution of Maxigesic
tablets (marketed as Combogesic) beyond
major pharmacy groups to include independent
pharmacies, while the roll-out of Combogesic IV
in London NHS hospitals progressed through the
bedding-in phase. Momentum in hospital settings
continues to be linked to formulary inclusion, with
ongoing regulatory filings supporting a growing
launch pipeline.
International
BUILDING REVENUE MOMENTUM IN NEW MARKETS
In Europe we are making good progress with
our portfolio of injectables, purchased from
an insolvent company in 2025. We have updated
the relevant regulatory dossiers and licenses and
are now pursuing launches across the European
Union. We expect these products to make
a meaningful contribution in the first half
of the current financial year.
North America
AFT launched Combogesic IV in Canada during
FY26 and progressed a pipeline of additional
products through regulatory and dossier
preparation. We have a healthy programme
of product launches planned. Combogesic Rapid
is set to be the first in the new financial year.
We have partnered with a local sales agency
to extend our reach in this market.
In the US, Combogesic Rapid will be primarily
distributed through Mark Cuban’s CostPlus
platform, reaching all 50 states, while Hikma
continues to distribute Combogesic IV.
AFT’s consumer range — including Liposachets,
Kiwisoothe, and Optisoothe — is available through
Amazon with additional channels being finalised
and expected to be commercialised during the
FY27 time period
INTERNATIONAL REVENUE:
Significant improvement in revenue as our footprint expands.
NZ$ MILLION
$30
$20
$10
$-
202420252026
$8.5
$19.3
$3.0
$25.5
$16.0
PRODUCT SALES AND ROYALTIES LICENSING
$(6.0)m
(FY25: $(7.3) million)
INTERNATIONAL
OPERATING
PROFIT/(LOSS)
$0.7
$15.3
$28.5
$27.8
First shipment: We selected Qilu as a new supplier of Maxigesic
Rapid into the US. We were impressed by The Chinese company’s
commitment to AFT and its manufacturing expertise.
WORKING TO IMPROVE YOUR HEALTH | 10
REGIONAL PERFORMANCE
Maxigesic IV in US Hospitals
Maxigesic IV is AFT’s proprietary non-opioid
intravenous formulation combining paracetamol
and ibuprofen for the treatment of mild to
moderate acute pain. The product has been
licensed to partners in over 100 countries,
approved in more than 50, and launched across
30 markets worldwide — a testament to its broad
global acceptance.
The US market represents a significant opportunity.
The opioid crisis continues to exact a devastating
toll, with approximately 81,700 overdose deaths
in 2024
3
and nearly US$ 11 billion
4
in associated
hospital costs.
Marketed in the US as Combogesic IV, our product
offers clinicians an effective, opioid-free alternative
at a critical point of care. We have been issued
a permanent HCPCS J-code by the Centers for
Medicare & Medicaid Services. It gives hospitals
a clear and reliable reimbursement pathway for
Combogesic IV. This removes a significant barrier
to formulary inclusion and is expected to assist
our US distribution partner Hikma as it seeks
to step up promotion this year.
In China, our distribution agreement is subject
to a termination notice from the current partner,
and AFT is in discussions with alternative partners
to ensure continuity in this important market.
Intellectual property protection for Maxigesic IV
continues to strengthen, with additional patents
granted in Europe in 2025.
3
https://www.axios.com/2025/05/20/opioid-use-disorder-costs
4
https://www.waldenu.edu/online-masters-programs/master-of-
healthcare-administration/resource/opioid-crisis-the-strain-it-
places-on-the-healthcare-system
Affordable Pain Relief
COMBOGESIC RAPID JOINS
MARK CUBAN’S LOW-COST
DRUG PLATFORM
Maxigesic Rapid (marketed as Combogesic Rapid
in the US) is now set to be distributed primarily
through Cost Plus, the public benefit organisation
founded in 2022 with the backing of the US
billionaire and Shark Tank star Mark Cuban.
Cost Plus was established to lower the distribution
costs of medicine. Since its founding in 2022 it has
grown rapidly and now stocks more than 2,300
commonly prescribed medicines. It distributes these
medicines, online and through affiliated pharmacies
at cost plus a 15% markup
5
and its reach extends
to all 50 US states.
AFT is now concentrating on this channel to
market Maxigesic Rapid for the main markets in
the US, while Alexso will continue to distribute the
medicine for the market segments of its distribution
arrangements we disclosed in 2024 and Hikma will
continue to distribute the intravenous form of the
medicine.
Finally, AFT continues to expand its portfolio of
medicines in this market including our Liposachet
range, Kiwisoothe, and Optisoothe range. These
medicines are available through Amazon presently
with other channels currently under negotiation.
5
Cost plus also charges distribution fees on top of the 15% mark up
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 11
REGIONAL PERFORMANCE
6
Investigational New Drug
EXTENDING OUR
RESEARCH AND
DEVELOPMENT PIPELINE
We are continuing to invest in our research
and development pipeline, recognising that
it represents the foundation of growth and
shareholder value creation.
AFT continued to expand and advance its research
and development portfolio in FY26, with progress
across a diversified set of programmes spanning
pain, dermatology and eyecare, alongside a
targeted range of hospital injectables.
Our R&D strategy is closely linked to our active
out-licensing and in-licensing programme, enabling
us to convert development progress into value
through clinical and regulatory milestones, while
broadening the product base available for our
international hubs.
FY26 R&D expenditure (expensed and capitalised)
was $18 million (FY25: $15 million). We intend to
further increase R&D expenditure to $25 million in
FY27 in order to execute the larger R&D portfolio
including the late-stage injectable iron project,
which requires a large clinical study.
During FY26, AFT made notable progress across
several late-stage programmes:
• Intravenous iron: Following a positive
Phase III study, AFT and its development
partners progressed preparations for a large
global confirmatory study (~1,000 patients) and
filed additional patent applications to further
protect the asset (see page 13)
• Antibiotic eyedrop: AFT progressed its
regulatory pathway with the US FDA, with IND
6
submission targeted to enable first-in-human
studies. The programme targets drug-resistant
ocular infections, where current options are
limited and compounding is common.
• Topical strawberry birthmarks: Pre-IND work
advanced and FDA feedback was incorporated
to guide the IND submission pathway and
Phase I–III study designs.
• Maxigesic IV paediatric: Preparations
progressed to commence a paediatric study
following FDA approval of the paediatric
study plan.
WORKING TO IMPROVE YOUR HEALTH | 12
RESEARCH AND DEVELOPMENT
7
Data on file.
• Vulvar Lichen Sclerosis: Multiple formulation
strategies have been evaluated in partnership
with our development partner Hyloris, with
development advancing toward a novel, user-
friendly topical candidate designed to reduce
inflammation and deliver long-term symptom
control for this underserved condition.
• Burning Mouth Syndrome: Two promising pre-
prototypes are advancing in co-development
with Hyloris, targeting a differentiated, patent-
eligible formulation for progression into clinical
validation — addressing a significant gap in care
where no approved treatments currently exist.
• Topical Keloid Scars: Formulation work is
underway.
• Injectables pipeline: AFT continued to progress
the Sinoject pipeline, including filing regulatory
dossiers for at least five injectables before the
end of FY27.
• A new agreement: we have signed
a new agreement with a company owned by
Massey Ventures to develop a novel injectable
formulation treatment which would compete
in a market estimated presently to be around
US$2 billion growing to US$3-3.7 billion by 2032-
2034
7
. Provided the novel formulation is stable,
then AFT would exercise the option agreement
and proceed with the full development. It is
planned that this decision would occur within
this financial year.
• Two developments primarily aimed at the
Australian market with high sales potential.
AFT meanwhile executed multiple out-licensing
agreements and advanced a pipeline of further
term sheets and negotiations, including an out-
licensing agreement for our novel IV iron therapy
for China with Chengdu-based Grand Life Sciences
Group, featuring upfront, development and sales
milestone payments and recurring royalties, with
contribution to global development funding.
Consistent with prior years, AFT expects these R&D
and international expansion efforts to support a
broader, more diversified product and geographic
footprint, underpinning resilience and supporting
the company’s longer-term growth ambitions.
Injectable Iron – A Significant Opportunity
A high-potential product backed with clinical
evidence and significant commercial potential
Iron deficiency affects approximately 15% of the
global population, and the market for intravenous
iron therapies — valued at US$3 billion in 2024 —
is projected to exceed US$7.4 billion by 2033
8
.
AFT is well positioned to capture a share of this
growing market with an innovative injectable iron
therapy it is commercialising in partnership with
Belgian speciality pharmaceutical company Hyloris.
Current intravenous iron therapies, while effective,
present tolerability challenges and typically require
multiple infusions. The new product is designed to
address these shortcomings. Phase I and Phase II
studies have demonstrated strong tolerability,
lower indicators of toxicity compared to leading
intravenous therapies, and comparable efficacy —
potentially delivered in a single injection.
Following productive engagement with the FDA,
AFT is now advancing toward a pivotal Phase III
study involving approximately 1,360 patients across
New Zealand, India, China, Japan, the US, Armenia,
and Europe. A licensing agreement with Chengdu-
based Grand Life Sciences Group will support both
development and commercialisation in China.
Global interest in the product remains strong, with
unsolicited approaches continuing from companies
worldwide — a clear signal of the product’s
commercial promise.
AFT continues to strengthen its existing OTC iron
portfolio which includes Ferro-Liquid, Ferro-Tab,
Ferro-sachets, Ferro LipoSachets, and FerroMalt.
We are presently completing two clinical studies
targeted at supporting promotion in existing
territories and enabling further regulatory
approvals in other AFT affiliate markets.
Additionally, we are developing a further new
OTC iron formulation to add to our extensive
range of iron products.
8
https://www.biospace.com/intravenous-iron-drugs-market-size-
to-worth-around-us-7-41-billion-by-2033
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 13
RESEARCH AND DEVELOPMENT
SUSTAINABILITY
WORKING TO IMPROVE YOUR HEALTH | 14
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
environmental, social and governance (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.
This year, the New Zealand Government took the
pragmatic decision in October 2025 to raise the
market capitalisation threshold at which equity
issuers are required to report against the Aotearoa
New Zealand Climate Standards to $1 billion.
As a result, AFT Pharmaceuticals will no longer
be classified as a Climate Reporting Entity (CRE)
once the Financial Markets Conduct Amendment
Bill comes into effect in 2026.
In light of these changes AFT Pharmaceuticals is
applying the Financial Markets Authority’s interim
relief under its ‘no action’ approach, together
with NZX Regulation Limited’s class waiver
under the NZX Listing Rules. Accordingly, AFT
Pharmaceuticals will not publish a Climate-related
Disclosure for the year to the end of March 2026
AFT Pharmaceuticals remains committed to
building a resilient business in a changing climate
and to managing emissions across its value chain.
Understanding climate-related risks and taking
action continues to be a key focus within AFT’s
sustainability framework. While a standalone
Climate-related Disclosure will no longer be
published, AFT will continue to provide updates
on its progress through its Annual Report in a way
that is meaningful to our stakeholders.
An overview of our climate reporting is covered
on pages 31 and 34 of this report, while our latest
climate statement is provided in Appendix 1
on Pages 103 to 113.
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 15
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
Complying with all relevant
legal and listing requirements
ESG performance in our
value chain
Performance measures:
• Product reach and breadth
of therapeutic applications
• Product portfolio expansion
• Contributions to communities
Performance measures:
• Regulatory and Governance
Code compliance
• Training and education
Performance measures:
• Compliance with our Supplier
Code of Conduct and our
Modern Slavery commitments
• Supplier visits
Best quality and safety
systems for manufacturing
and distributing medicines
ESG reporting and transparencyEthical marketing and sales
practices
Performance measures:
• Compliance with best practice
standards in medicine
manufacture
• Our pharmacovigilance
practices and relationships
with our regulators
• Monitoring for counterfeit
medicines
• Product recalls
Performance measures:
• Policy adherence by the Board
and Management
• Governance of climate risk
Performance measures:
• Compliance with our
Code of Culture and Ethics
and our Anti-bribery and
Corruption Policy
• Compliance with regulatory
advertising codes.
Innovation in response to need
Performance measures:
• Investment in research and
development
• Product development portfolio
• Compliance with clinical trial
standards
WORKING TO IMPROVE YOUR HEALTH | 16
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
related risks and taking action
6. Waste
minimisation
AREAS OF FOCUS
Developing our people Understanding how climate
affects our business
Improving our consumer
packaging
Performance measures:
• Training
• Staff turnover
• Wellbeing support
Performance measures:
• Integrated climate governance
and voluntary disclosure
of relevant climate-related
performance
Performance measures:
• Continuous improvements in
reducing packaging weight
• Introducing recycled material
into our packaging
• Making more of our
packaging recoverable
Diversity and inclusionWorking with suppliers
to take action
Reducing waste in the
supply chain
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
Performance measures:
• Engaging with fleet partners
on phasing of hybrid electric
vehicles
• Engaging suppliers to measure
their emissions
Performance measures:
• Reducing packaging
consumption
• Reducing material towards
landfill
Health and safety
Performance measures:
• Health and Safety Policy
compliance
• Supplier Code of Conduct
compliance
• Lost time to injury reporting
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 2026 | 17
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 Our 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
and reviewed them internally over the last year.
WORKING TO IMPROVE YOUR HEALTH | 18
SUSTAINABILITY
Our Values and Our Culture
At AFT Pharmaceutical we strongly believe it is our people who
make the company a success. We hire the ‘best person’ for the job,
regardless of gender, age, culture/religion. We are fully accepting and
tolerant of other people and respect one another.
In all our business interactions with customers, business associates,
and colleagues, we treat others as we would like to be treated,
regardless of their position. Our workplace is safe and free
of discrimination of any kind.
WE WORK HARD
WE BELIEVE
WE SHARE
WE SPEAK
WE AIM
We Work Hard
– to ensure best practice in all that we do.
We Believe
– in honesty and integrity, and this is always
at the forefront of our business practices.
We Share
– ideas across teams and strive and encourage
open flow of ideas and opinions from our people
at all times.
OUR
VALUES
We Speak
– many languages and come from
all walks of life and over 23 different
birth countries, reflecting our diversity as
a company and our worldwide customer base.
We Aim
– to succeed on an internationally by taking our
products to the world and putting New Zealand
on the worldwide pharmaceutical map, delivering
the highest growth and profitability possible
for our investors.
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 19
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
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.
WORKING TO IMPROVE YOUR HEALTH | 20
SUSTAINABILITY
PRIORITY 1:
Working to Improve Health and Wellbeing
• Cure Parkinson’s New Zealand, a charity to
shape and fuel effective research leading
to a cure for Parkinson’s disease, namely,
therapies that can slow, stop or reverse the
progression of the disease.
• Ovarian Cancer Australia via a partnership
with Australian pharmacy chain TerryWhite
Chemmart in which AFT donated a proportion
of the sale price to the charity, which supports
those affected by ovarian cancer, and their
families – from mental health support to
understanding treatment and so much more.
• The Humpty Dumpty Foundation, which
provides essential and often lifesaving paediatric
medical equipment for sick children in hospitals
in the community.
• Save Our Sons Duchenne Foundation, a charity
for those living with Duchenne and Becker
muscular dystrophy across Australia.
• We also donated products to a wide range
of community organisations including Women’s
Refuge, Rainbow Youth, Dress for Success,
Westlake Boys Basketball Team, St Cuthberts
and the North Harbour Club.
These support packages follow support in prior
years to charities sponsored by the New Zealand
Super Rugby Franchises and the Wesleyan
Medicine Mission to Bougainville.
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.
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 FY 27. We have also expanded
the territories where our products are sold in more
than 80 countries.
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 broad range of
deserving charities. This year we supported:
• Medical Aid Abroad, an organisation that
takes donated medical supplies and delivers
life-changing support for communities
overseas. We provided financial support
and office equipment.
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 21
SUSTAINABILITY
FOCUS AREA:
Innovation in Response
to Need
Performance:
• Research and Development expenditure was
$18 million in the year to 31 March 2026 and
we expect to increase it to $25 million in FY27.
• Our product development portfolio expanded
to 10 projects 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
$18 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 8 patented products.
A key addition in the current year was an
agreement commercialise a new technology that
will allow the storage of a range of injectables at
room temperature (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
Systemsfor 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 concerns
over the 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.
WORKING TO IMPROVE YOUR HEALTH | 22
SUSTAINABILITY
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. 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.
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
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.
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 below). 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.
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 23
SUSTAINABILITY
CASE STUDY:
Improving patient care:
ambient temperature injectables
Access to life saving injectable medicines
should never depend on the reliability of a cold
chain. Yet for many patients —particularly those
receiving oncology and anti infective treatments
— temperature sensitive products can limit
availability, delay care, and increase the risk of
supply disruptions. That is why AFT is investing in
innovation that directly overcomes these challenges.
A new partnership with the based Stablepharma,
to develop its StablevaX™, technology for these
products. StablevaX™, is currently being used
to reformulate existing and new vaccines and
pharmaceuticals into thermostable products
that remain stable at temperatures 40°C and
above, removing the need for refrigeration or
freezing throughout manufacture, distribution,
and administration.
StablevaX™ is built on the remarkable survival
biology of the resurrection plant, a desert species
capable of withstanding years of extreme drought.
When water becomes scarce, the plant protects itself
by entering a state of suspended animation—curling
tightly into a ball and coating its cells with trehalose,
a naturally occurring sugar that preserves biological
structures during dehydration. Once moisture returns,
the plant “resurrects,” returning to full function.
This mechanism inspired Stablepharma’s founders,
whose research revealed that trehalose could be
used to stabilise vaccines and pharmaceuticals
in a similar way: by forming a protective sugar
glass that maintains potency at high temperatures
and allows products to be revived simply
by rehydration. This plant derived principle
underpins StablevaX™ and enables the creation
of thermostable, fridge free formulations with
significant benefits for global health logistics.
Inspired by nature: the resurrection plant survives in droughts using the same chemicals that are at heart of Stablevax (TM)
ambient storage technology
WORKING TO IMPROVE YOUR HEALTH | 24
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. In line
with the government’s pragmatic decision to lift
the threshold at which issuers are required to
report against the Aotearoa New Zealand Climate
Standards from $60 million to $1 billion, we have
in the current year moved to align our reporting
on these measures in a way that is meaningful
and valuable to our stakeholders. As part of this
process, we have identified no material climate
risks in FY26.
AFTs governance charters and policies can be found
in the Investor Centre on the Company’s website.
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 25
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 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 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 23).
For further detail on our approach, please see our
Governance Statement on pages 42 to 62 of this
report and the governance section of our website.
WORKING TO IMPROVE YOUR HEALTH | 26
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.
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 27
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 2026, we had 126
employees up from 119 in FY25.
Our workforce continues to reflect the diversity
of New Zealand and Australia and the other
markets where we operate. At the end of March
2026, the team hailed from 33 different cultural
identities and 23 birth countries, with a gender split
of 57% women and 43% men (FY25 61% women,
39% men) and an age spread of employees ranging
from 22 years to 74 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 2026 and 31 March 2025
are set out in the following table:
FemaleMale
2026202520262025
Directors 233%233%467%467%
Officers
1
444%450%556%450%
Workforce7257%7361%5443%4639%
1
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.
Female 61%
Male 39%
Employees by
Age Diversity
(%, as at 31 March 2026)
Employees by
Gender Diversity
(%, as at 31 March 2025)
Female 57%
Male 43%
WORKING TO IMPROVE YOUR HEALTH | 28
SUSTAINABILITY
FOCUS AREA:
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 the 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 60 to 63 of this report.
AFT team after the Takapuna beach cleanup.
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.
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 PHARMACEUTICALS ANNUAL REPORT 2026 | 29
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 20262025
Lost time to injuries Zero
AchievedAchieved
Total recordable injuries ZeroAchieved Achieved
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 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 the health and safety
targets set out to the left. Health and safety in our
supply chain is covered through standards laid out
in the Supplier Code of Conduct.
First Aid Training
St Johns provided in house first aid training to
staff this year. It is a bi-annual programme that
helps ensure our people are equipped to respond
confidently in an emergency and reflects AFT’s
ongoing commitment to health, safety and
wellbeing across the business. It is also aligned
with our commitment to supporting and
developing our people through education,
training and workplace flexibility.
WORKING TO IMPROVE YOUR HEALTH | 30
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 Greenhouse Gas (GHG) emissions are robust,
and evidence based.
FOCUS AREA:
Understanding How
Climate Affects Our Business
Performance:
• We leveraged our climate risk assessments
undertaken in FY24 and FY25 and have
identified no material climate-related physical
or transition impacts in FY26
• We measured our GHG emissions and expanded
the scope of emissions reported to include
Scope 3. We have also improved the way we
present this information for stakeholders to
provide more granular information of emissions
activities by global jurisdiction (see page 33)
• We affirmed our findings that our business
model, and strategy is largely resilient to future
climate related risks
Assessing Our Climate Risk
As noted on page 15, while AFT will no longer
be classified as a Climate Reporting Entity (CRE)
once the Financial Markets Conduct Amendment
Bill comes into effect in 2026, understanding and
managing climate-related risks remains a key focus
within AFT’s sustainability framework.
Based on a review of climate-related risks and
opportunities identified in previous assessments,
AFT considers the most significant risks to the
business to be the potential for extreme weather
events to disrupt manufacturing and distribution.
AFT is well positioned to continue refining and
implementing its strategy to manage these risks
over time.
Overall, AFT considers its business model and
strategy to be largely resilient to future climate-
related risks.
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 31
SUSTAINABILITY
AFT’s Greenhouse Gas Emissions
Over the FY26 year our combined location-based Scope 1 and 2 emissions (disclosed below and in
Appendix 1 on pages 103 to 113 of this report) have decreased by 17.72% since our base year (FY24).
This is largely due to the transition of our hybrid electric vehicles into our vehicle fleet over this period.
AFT Pharmaceuticals is voluntarily reporting its Scope 3 emissions in FY26. While it was not required to
report these emissions in prior years under the New Zealand Climate Standards (NZ CS), the company is
taking this step to give a fuller picture of its impact across its value chain and demonstrate its commitment
to transparency and climate action.
This year AFT has also reported emissions by the regional jurisdictions in which it operates to provide
greater visibility of its global footprint. Many of these operations are distribution-based and do not include
physical offices, controlled facilities, or vehicle fleets. As a result, there are no Scope 1 or Scope 2 emissions
associated with these locations. Emissions related to these activities are primarily captured within Scope 3,
reflecting the outsourced and value chain nature of these operations.
AFT’s GHG emissions are presented as tonnes of carbon dioxide equivalents (tCO₂e). No base year
restatements have been made. AFT voluntarily discloses its greenhouse gas (GHG) emissions and
endeavours to align this disclosure with the principles of the New Zealand Climate Standards (NZ CS)
and the GHG Protocol Corporate Accounting and Reporting Standard as a matter of good practice.
AFT Pharmaceuticals NZ Limited Consolidated GHG Emissions FY24 – 26 (t CO
2
e)
ScopeCategoryFY24
(base year)
FY25FY26% change
from base
year
Scope 1
Mobile combustion331.16290.33271.10-18%
Fugitive sources0.06N /AN /A-100%
Total Scope 1331.76290.33271.10-18%
Scope 2
Purchased electricity
Location-based18.5716.1917.14-8%
Market-based17.3218.7420.38+15%
Total Scope 2 (location-based)18.5716.1917.14-8%
Total Scope 2 (market-based)17.3218.7420.38+15%
Scope 3
Category 3: Fuel- and energy-related
activities
--
67.84-
Category 4: Upstream transportation
and distribution
--
2,340.56-
Category 6: Business travel--231.39-
Category 7: Employee commuting--59.98-
Total Scope 3--2,699.76-
Total GHG Emissions (location-based)2,988.00
Total GHG Emissions (market-based)2,991.24
WORKING TO IMPROVE YOUR HEALTH | 32
SUSTAINABILITY
ScopeCategory AFT (Consolidated)
t CO
2
e
NZAUUKUSCANHKEU
ASIA
Scope 1
Mobile combustion271.1033.82237.28------
Total Scope 1271.1033.82237.28------
Scope 2
Purchased electricity
(location-based)
17.149.177. 97------
Purchased electricity
(market-based)
20.3810.2910.09------
Total Scope 2
(location-based)
17.149.177. 9 7------
Total Scope 2
(market-based)
20.3810.2910.09------
Scope 3
Category 3:
Fuel and energy-
related activities
67.849.0158.83------
Category 4: Upstream
transportation and
distribution
2,340.561,146.95991.440.73129.992.5321.0947. 410.42
Category 6:
Business travel
231.39142.4888.800.11-----
Category 7:
Employee commuting
59.9849.897. 9 32.16-----
Total Scope 32,699.761,391.321,392.243.00129.992.5321.0947. 410.42
Total GHG Emissions
(location-based)
2,988.001,391.321,392.243.00129.992.5321.0947. 410.42
Total GHG Emissions
(market-based)
2,991.241,392.441,394.363.00129.992.5321.0947. 410.42
Our emissions inventory covers the period 1 April 2023 to 31 March 2024, 1 April 2024 to 31 March 2025
and 1 April 2025 to 31 March 2026. An operational control consolidation approach has been used.
Emissions data is reported on a 10+2 basis - covering the first 10 months of the financial year using actual
invoiced and metered data, with the final two months estimated to enable independent assurance review
within the timelines required for annual report publication. This approach is commonly used where audit
timelines preclude the use of a full 12-month actual dataset. The basis for estimation is described in the
Methods section in Appendix 1.
The inventory has undergone independent assurance from Toitū Envirocare to ensure accuracy
and completeness.
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 33
SUSTAINABILITY
FOCUS AREA:
Working With Suppliers
to Take 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:
• We have affirmed science-aligned targets for
our Scope 1, 2 and 3 emissions, consistent with
limiting global warming to 1.5 degrees Celsius.
These targets apply to AFT’s UK subsidiary
operations, reflecting specific requirements
within that market.
• We have taken action to work with our suppliers
to manage our emissions, including gradually
transitioning our vehicle fleet to hybrid electric
and engaging with suppliers to measure their
own Scope 1 and 2 emissions.
Climate Change Strategy
AFT has affirmed its commitment to responsible
environmental stewardship by taking steps to
manage our GHG emissions. Our near-term
commitments apply to AFT’s UK subsidiary
operations, reflecting specific requirements
within that market.
These targets are to reduce Scope 1, Scope 2, and
Scope 3 by 42% by 2030 on a FY24 base year.
At the time the target was established, AFT
measured Scope 3 emissions on a consolidated
group basis and did not disaggregate by regional
jurisdiction. From FY26, AFT has begun measuring
emissions by jurisdiction, with FY26 representing
the first year of UK-specific Scope 3 data. As
such, FY26 UK Scope 3 emissions of [3.0 tCO
2
e]
are reported as the current performance position.
A FY24 UK Scope 3 baseline is not available,
and progress against the 42% reduction target
therefore cannot yet be quantified. We have yet
to develop a plan to achieve our longer-term net
zero target.
Further detail is covered in Appendix 1 on
pages 103 to 113 of this report.
WORKING TO IMPROVE YOUR HEALTH | 34
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. It is the same
rating as FY25, but we have continued to make
improvements with the recoverability of our
packaging and disposal labelling moving to an
‘advanced’ rating from ‘making good progress’.
We retain a ‘beyond best practice’, the highest
APCO rating for the governance of our packaging
governance and strategy and the design and
procurement of packaging and our management
of on-site waste.
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.
Nevertheless, nearly 60% of our 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 2026 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. We added
recycling disposal information to all our packaging.
Recycled Content
APCO Rating: ‘Advanced’
We maintained our efforts to use recycled materials
in packaging. Recycled content in our packaging
fell to 59% from 65% in FY25, but still a substantial
improvement on the 24% achieved in FY24.
Recoverability
APCO Rating: ‘Advanced’
Our rating this year improved from ‘Good
Progress’ to ‘Advanced’ as we moved to exploring
opportunities to provide our customers with
re-useable packaging. Around 97% of packaging
materials are designed to be recyclable, steady
on the prior year’s result.
Disposal Labelling
APCO Rating: ‘Advanced’
Our rating this year improved from ‘Good Progress’
to ‘Advanced’ as we lifted the proportion of
packaging that carries disposal labelling and we
introduced the ‘Tidy Man’ logo which serves as a
widely-recognised reminder to dispose of packaging
responsibly rather than dropping it as litter.
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’
We continue to benefit from 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. The scheme
represents a substantial advance in the reduction
of problematic materials in our supply chain.
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 35
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 performance in this document. AFT directors and management believe
that this measure is used internally to evaluate performance of business and to allocate resources.
Non-GAAP profit measures are not prepared in accordance with New Zealand International Financial
Reporting Standards (NZ IFRS) 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 line item
NZ$’000’s
Year ended 31 March 20262025
Net profit after tax attributable to owners of the parent14,73011,962
Less: Finance income(6)(25)
Add back: Interest costs2,4862,821
Add back: Other finance loss/(gain)91(1,182)
Add back: Depreciation1,081$994
Add back: Amortisation2,6181,675
Add back: Income tax expense/(benefit)7,79 54,634
EBITDA28,79520,879
WORKING TO IMPROVE YOUR HEALTH | 36
RECONCILIATION OF EBITDA TO GAAP
GOVERNANCE
& MANAGEMENT
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 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 a former Chair
and former Director of the
Suncorp New Zealand group of
companies and is the Chair 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 2026 | 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. He retires later
this month.
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
25 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
heldroles 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, across
the Australian New Zealand
markets and international
markets. With over 30 years’
experience, his extensive
marketing career prior to
joining AFT included roles
with 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 2026 | 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
1
(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 2026. 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
21 May 2026 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.
1
The ASX Corporate Governance Council’s Corporate Governance Principles and Recommendations was last updated on 27 February 2019.
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 2026 | 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;
• reporting issues regarding breaches of the
Ethics Code, legal obligations, or other
AFT policies; and
• additional Director responsibilities.
Compliance with Company policies is included
in employment agreements and forms part
of the induction process. Periodic reminder
communications are sent to staff about the Code
and its application bi-annually.
There is a standard agenda item for each Board and
management meeting in which all (or confirmation
of none) reported incidents or breaches of the
code are raised. No incidents or breaches of the
Code have been reported to Board members
or management during the period.
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,
independentdirector@aftpharm.com, that is
directed to the personal emails of all Non-Executive
Independent Directors, for staff to confidentially
raise any concerns they may have. All Directors,
including Non-Executive Directors, confirm at
each Board meeting whether they have received
any complaints.
An employee conflict of interests’ register was
established in 2019 to record any perceived
personal conflicts of interest. Management
confirm there are no new entries to report to the
Board, noting that the only entry in the register
is Marree Atkinson who reports to her spouse
Hartley Atkinson. This is mitigated by reviews being
signed off by the remuneration and nominations
committee and the Board.
The Board holds six-monthly reviews of the
Ethics Code.
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 on the Company’s intranet and in the
Investor Centre on the Company’s website.
WORKING TO IMPROVE YOUR HEALTH | 44
GOVERNANCE
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.
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 45
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
2026 the Board comprised six Directors:
Director Role
David Flacks Chair and Non-Executive
Director
Andrew Lane Non-Executive Director
Allison YorstonNon-Executive Director
Dr Ted Witek Non-Executive Director
Dr Hartley Atkinson Executive Director and
Chief Executive Officer
Marree Atkinson Executive Director and
Chief of Staff
The average tenure of Non-Executive Directors
at the date of this report is five 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.
The Board has developed (and periodically reviews
and updates) a comprehensive skills matrix to inform
WORKING TO IMPROVE YOUR HEALTH | 46
GOVERNANCE
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 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.
Allison Yorston joined the Board on 12 November
2024 and accordance with the applicable NZX
listing rules, Allison was elected to the Board
at the 2025 Annual Meeting.
Board Capability
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%
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 47
GOVERNANCE
Additionally, in accordance with the rotation
requirements of the NZX Listing Rules, Managing
Director Hartley Atkinson was re-elected to the
Board at the 2025 Annual Shareholders 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 2026, 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 2026 (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.
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 98 to 101 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.
WORKING TO IMPROVE YOUR HEALTH | 48
GOVERNANCE
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 2026. 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 pages 28 and 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 2027) 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 2027.
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 49
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 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.
WORKING TO IMPROVE YOUR HEALTH | 50
GOVERNANCE
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 2026
The 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 2026.
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 2026
Board and Committee Attendance
(Recommendation 3.5)
The Board met for nine regularly scheduled
meetings during the financial year ending 31 March
2026. 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
David Flacks9/94/42/2-
Hartley Atkinson9/9--2/2
Marree Atkinson8/9--2/2
Andrew Lane 9/94/42/2-
Dr Ted Witek9/9-2/22/2
Allison Yorston9/94/4--
1
Committee members also met frequently through-out the year
on an informal basis to discuss regulatory and new product
development matters.
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.
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 51
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 prepared 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 this year
resolved to report voluntarily, in part, against the
Aotearoa New Zealand Climate Standards after the
Government indicated that it would raise the market
capitalisation threshold at which public companies
are required to report against the standards from
$60 million to $1 billion and the Financial Markets
Authority granted ‘no action’ relief to those entities
that under the proposals would no longer be climate
reporting entities. These disclosures are overseen
by the Board. Further detail is covered in the
sustainability section (on pages 14 to 35) of this report
and in the appendix on pages 103 to 113 of this report.
WORKING TO IMPROVE YOUR HEALTH | 52
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 59 to 63
of this report.
Director Remuneration
and Senior Executive Remuneration
(Recommendations 5.1, 5.2, 5.3)
Please see pages 59 to 63 of this report for
Non- Executive Director and Executive Director
and Senior Executive remuneration governance
and the relevant disclosures.
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 53
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.
WORKING TO IMPROVE YOUR HEALTH | 54
GOVERNANCE
Principal Risks
(Recommendation 6.2)
AFT’s current principal risks and their mitigations are summarised below. AFT risk management framework
has positioned the Company well to respond to the challenges the Company faces. Further detail is included
in the sustainability section of this report on pages 14 to 35 of this report.
RiskMitigation
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.
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 55
GOVERNANCE
RiskMitigation
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 programme 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 30 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.
WORKING TO IMPROVE YOUR HEALTH | 56
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.
For further details on the audit and non-audit
fees paid and work undertaken during the period,
refer to page 80 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.
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 57
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;
- quarterly investor updates of non-material
strategic developments within the Company
- 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 2026, 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 2026 Annual Shareholders Meeting is
currently intended to be held in early August 2026.
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.
WORKING TO IMPROVE YOUR HEALTH | 58
GOVERNANCE
REMUNERATION
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 59
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
50 of this report), the governance arrangements
relating to remuneration are overseen by the
Board’s Remuneration and Nominations Committee.
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 2025 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 98 to 101 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 bodyPositionAnnual Fees
Year to 31 March FY2026
1
FY2025
Board of DirectorsChair$154,000$150,000
Director $82,400
2
$80,000
Audit and Risk CommitteeCommittee Chair $20,600
3
$20,000
Committee Member$6,180
3
$6,000
Remuneration and Nominations committeeCommittee Chair $ 7,72 5$7,500
Committee Member$6,180
3
$6,000
Regulatory and Product Development
Oversight Committee
Committee Chair $15,540
4
$15,000
Committee Member$6,180$6,000
1
All fees are paid in NZD unless stated.
2
Fee payable to non-United States (US) based Directors. US-based Directors receive USD$82,400.
3
Fee payable to non-US based Directors. US based Directors receive USD$6,180.
4
Fee payable to non-US based Directors. US based Directors receive USD$15,450.
WORKING TO IMPROVE YOUR HEALTH | 60
REMUNERATION
Non-Executive Directors received the following Directors’ fees, remuneration and other benefits from the
Company in the financial year ended 31 March 2026:
Non-Executive
DirectorDavid FlacksDr Ted Witek
2
Andrew LaneAllison Yorston
3
Year to 31 March
20262025202620252026202520262025
Non-Executive
Director
Board fees$154,500$150,000$138,966$134,943$82,400$80,000$82,400$30,521
Audit and Risk
Committee fees$6,180$6,000-$4,200$20,600$20,000$6,180$181
Remuneration
and Nomination
Committee fees$6,180$6,000$10,422$10,120$ 7,72 5$7,500--
Regulatory
and Product
Development
Oversight
Committee fees--$26,056$25,301----
Shares and
other payments
or benefits¹--------
Total
remuneration¹$166,860$162,000$175,444$174,564$110,725$107,500$88,580$30,701
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 1:0.593.
3
Allison Yorston joined the Board on 12 November 2024 and joined the Audit and Risk Committee on 20 March 2025.
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 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.
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 61
REMUNERATION
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.
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.
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 2026,
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 2026, 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:
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 Managing Director and Chief Executive
Dr Hartley Atkinson these objectives include
company revenue and profit targets; key innovative
product development; and key product registration
and licensing. For Marree Atkinson these objectives
include company revenue and profit targets; human
resources objectives; and overhead cost savings.
Executive Directors – Remuneration Table (FY2026 & FY2025)
Base salaryTaxable benefits
Short-term
incentive¹
Long-term
incentive²Total remuneration
FY2026FY2025FY2026FY2025FY2026FY2025FY2026FY2025FY2026FY2025
Dr Hartley Atkinson
$752,200$730,300--$338,067$340,695--$1,090,267$1,070,995
Marree Atkinson
$ 267,800$260,000--$22,609$12,094--$290,409$272,094
1
The short-term incentives (STI) paid in each year were earned in the prior year and paid in the year stated. The FY2026 STI has not
been finalised.
2
Neither Executive Director was issued any form of long-term incentive during the financial period.
WORKING TO IMPROVE YOUR HEALTH | 62
REMUNERATION
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
2026 totalling at least $100,000 per annum.
The remuneration of those employees paid outside
of New Zealand has been converted into New
Zealand dollars. The table includes base salaries
and short-term incentives paid during the financial
year ended 31 March 2026 and long-term incentives
vested or exercised during the financial year ended
31 March 2026.
The table does not include long-term incentives
that have been granted, but which have not yet
been vested. Where the individual is a KiwiSaver
member, contributions of 3% of gross earnings
towards that individual’s KiwiSaver scheme are
included in the table. Where the individual works
in Australia, contributions of 9.5% of gross earnings
towards Australian Superannuation are included
in the table.
Employee Remuneration Table (NZD)
Remuneration range (NZ$)
Total number
of employees
100000 - 11000017
110001 - 12000017
120001 - 13000014
130001 - 14000011
140001 - 1500005
150001 - 1600001
160001 - 1700002
170001 - 1800001
190001 - 2000002
200001 - 2100001
210001 - 2200002
220001 - 2300001
230001 - 2400002
240001 - 2500002
250001 - 2600001
260001 - 2700002
290001 - 3000002
300001 - 3100001
330001 - 3400001
370001 - 3800001
510001 - 5200001
Total employees and former
employees earning more
than $100k87
Employee Long-Term Incentive Scheme
At 30 April 2026 AFT had issued 164,400 options
with 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.
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 63
AFT Pharmaceuticals Limited
CONSOLIDATED
FINANCIAL
STATEMENTS
For The Year Ended 31 March 2026
WORKING TO IMPROVE YOUR HEALTH | 64
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
2026, 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 68 to 97,
present fairly, in all material respects, the consolidated financial position of the Group as at
31 March 2026, 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) (‘IESBA Code’) as applicable to audits of financial statements of
public interest entities. We have also fulfilled our other ethical responsibilities in accordance
with PES 1 and the IESBA Code.
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 $2.25 million.
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 65
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 agreements 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 9, the value of
outstanding rebates as at 31 March 2026
was $15,460k (2025: $10,414k).
The rebate accrual is a Key Audit
Matter due to 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.
Our procedures included, but were not limited to:
• Held discussions with management to
update our understanding of the process
and models for estimating the rebates;
• Evaluated the design and implementation
of relevant controls over the accrual and
associated revenue recognition;
• Obtained the calculation of the 31 March
2026 outstanding rebates and checked the
calculation for mathematical accuracy;
• Evaluated key judgements and assumptions
including considering actual historical sales
and claims made 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.
WORKING TO IMPROVE YOUR HEALTH | 66
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
21 May 2026
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 67
INDEPENDENT AUDITOR’S REPORT
Consolidated Income Statement
For the Year Ended 31 March 2026
Note
2026
$’000
2025
$’000
Revenue 4254,705208,021
Cost of sales(144,154)(116,308)
Gross profit 110,55191,713
Other (expenses)/income(410)753
Selling and distribution expenses(58,663)(51,095)
General and administrative expenses(15,957)(12,228)
Research and development expenses(11,076)(11,495)
Operating profit 24,44517,648
Finance income625
Interest costs7(2,486)(2,821)
Other finance (loss)/gain7(91)1,182
Profit before tax 21,87416,034
Income tax expense13(7,795)(4,634)
Net Income 14,07911,400
Profit is attributable to:
Equity holder of the parent14,73011,962
Non-controlling interests(651)(562)
Earnings per share
Basic and diluted earnings per share ($)18$0.14$0.11
The accompanying Notes form an integral part of the consolidated Financial Statements.
WORKING TO IMPROVE YOUR HEALTH | 68
FINANCIAL STATEMENTS 2025-2026
Consolidated Statement of Comprehensive Income
For the Year Ended 31 March 2026
Note2026
$’000
2025
$’000
Profit after tax14,07911,400
Other comprehensive income
Items that may be subsequently reclassified to profit and loss:
Foreign exchange difference on translation of foreign operations(252)(342)
Other comprehensive loss for the year, net of tax(252)(342)
Total comprehensive income13,82711,058
Total comprehensive income is attributable to:
Equity holder of the parent14,47811,620
Non-controlling interests(651)(562)
13,82711,058
The accompanying Notes form an integral part of the consolidated Financial Statements.
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 69
FINANCIAL STATEMENTS 2025-2026
Consolidated Statement of Changes In Equity
For the Year Ended 31 March 2026
Share capitalShare options reserveForeign currency translation reserveRetained earningsTotalNon-controlling interestsTotal
$’000$’000$’000$’000$’000 $’000$’000
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
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
31 March 2026
Profit after tax - - -14,73014,730(651)14,079
Other
comprehensive income
- -(252) -(252) -(252)
Total
comprehensive income
- -(252)14,73014,478(651)13,827
Movement in share
options reserve
-52 - -52 -52
Transfer
to retained earnings
- - - - - - -
Dividends paid - - -(1,887)(1,887) -(1,887)
Balance 31 March 202678,24093(435)32,384110,282(1,213)109,069
The accompanying Notes form an integral part of the consolidated Financial Statements.
WORKING TO IMPROVE YOUR HEALTH | 70
FINANCIAL STATEMENTS 2025-2026
Consolidated Balance Sheet
As at 31 March 2026
Note
2026
$'000
2025
$'000
ASSETS
Current assets
Cash and cash equivalents10,24011,110
Trade and other receivables964,23748,564
Inventories1074,06648,476
Derivative assets23 -192
Total current assets148,543108,342
Non-current assets
Property, plant and equipment11399479
Intangible assets1264,30158,223
Right of use assets112,9632,771
Deferred tax13804 -
Total non-current assets68,46761,473
Total assets 217,010169,815
LIABILITIES
Current liabilities
Trade and other payables1539,21833,105
Provisions166,6395,665
Lease liabilities14935728
Related party loan141,6941,083
Derivative liabilities23937 -
Current income tax liability7,0402,675
Interest bearing liabilities149,884 -
Total current liabilities66,34743,256
Non-current liabilities
Lease liabilities142,5942,586
Interest bearing liabilities1439,00025,600
Deferred tax13 -1,296
Total non-current liabilities 41,59429,482
Total liabilities 107,94172,738
EQUITY
Share capital1778,24078,240
Retained earnings32,38419,541
Share options reserve209341
Foreign currency translation reserve(435)(183)
Equity attributable to equity holder of the parent110,28297,639
Non-Controlling Interests(1,213)(562)
Total equity109,0699 7,07 7
Total liabilities and equity217,010169,815
The accompanying Notes form an integral part of the consolidated Financial Statements.
On behalf of the Board on 21st May 2026
David Flacks Dr Hartley Atkinson
Chair Founder and Chief Executive Officer
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 71
FINANCIAL STATEMENTS 2025-2026
Consolidated Statement of Cash Flows
For the Year Ended 31 March 2026
2026
$’000
2025
$’000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers240,390204,766
Payments to suppliers and employees(244,805)(189,376)
Tax paid(5,124)(2,214)
Net cash generated from operating activities(9,539)13,176
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of property, plant and equipment(116)(281)
Purchase of intangible assets(9,641)(6,670)
Net cash used in investing activities(9,757)(6,951)
CASH FLOWS FROM FINANCING ACTIVITIES
Dividends paid(1,887)(1,678)
Payment for lease liabilities(850)(820)
New borrowings92,40016,600
Borrowings repaid(79,000)(19,200)
Related party loan6111,083
Interest received625
Interest paid on lease liabilities(269)(279)
Interest costs paid on borrowings(2,217)(2,542)
Net cash used in financing activities8,794(6,811)
Net increase/(decrease) in cash(10,502)(586)
Impact of foreign exchange on cash and cash equivalents(252)(344)
Opening cash and cash equivalents11,11012,040
Closing cash and cash equivalents35611,110
Made up of:
Cash and cash equivalents10,24011,110
BNZ overdraft(9,884) -
35611,110
The accompanying Notes form an integral part of the consolidated Financial Statements.
WORKING TO IMPROVE YOUR HEALTH | 72
FINANCIAL STATEMENTS 2025-2026
Reconciliation of Profit After Tax With Net Cash Flow From Operating Activities
2026
$’000
2025
$’000
Profit after tax14,07911,400
Non-cash items and items classified as financing activities
Depreciation208163
Depreciation ROU assets873831
Amortisation2,6181,675
Intangible disposals945231
Other non cash items(12) -
Share options expense5241
Interest on lease liabilities269279
Interest and finance expense2,2172,542
Unrealised loss/(gain) on foreign currency movements1,12981
Provision for tax expense2,2652,420
Interest received(6)(25)
Movement in working capital
(Increase)/decrease in inventories(25,590)581
(Increase)/decrease in trade and other receivables(15,673)(4,342)
Increase/(decrease) in trade and other payables, provisions7,0 8 7(2,701)
Net cash generated from operating activities(9,539)13,176
The accompanying Notes form an integral part of the consolidated Financial Statements.
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 73
FINANCIAL STATEMENTS 2025-2026
Notes to the Financial Statements
For The Year Ended 31 March 2026
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 a 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 21st May 2026.
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.
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.
WORKING TO IMPROVE YOUR HEALTH | 74
FINANCIAL STATEMENTS 2025-2026
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.
Comparative Information
In some cases, comparative information has been
restated to conform to this year’s presentation.
3. Significant Transactions and Events
in the Financial Year
On the 8th of March 2026 the Court of Appeal
dismissed a claim that AFT be required to share,
with PBL Solutions (PBL), any profit which AFT
may earn from the application of Pascomer for the
treatment of the non-orphan indication Port Wine
Stain (PWS).
PBL is a company associated with a former
contractor to AFT and is a 35% shareholder in
AFT Orphan Pharmaceuticals Limited, a company
created to pursue orphan applications.
AFT will continue to provide an account to PBL for
profits (if any) earned for orphan drug applications
of Pascomer and will share 35% of those profits
with PBL. PBL and AFT will share costs related to
the appeal.
The Court of Appeal decision has no impact on the
carrying value of the Pascomer IP included in the
note on page 85.
At the end of the 2024 Financial Year the Group
had applied to the IRD to amend the 2018 to
2022 income tax returns to treat both capitalised
product development and capitalised product
registration costs as deductible. This would have
been consistent with the Groups treatment of
the income tax years from 2023 onwards. The
IRD approved the amendment for the capitalised
product development costs but declined the
opportunity to offer a determination on the
capitalised registrations costs. In August 2025,
after further independent advice, the Group
applied for a binding ruling under section 91E of
the Tax Administration Act 1994 to seek clarity on
the deductibility of capitalised product registration
costs going forward.
There were no other significant transactions
and events during the current year.
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2026
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 75
FINANCIAL STATEMENTS 2025-2026
4. Revenue From Operations
2026
$’000
2025
$’000
Sale of goods248,135204,827
Royalty income3,5112,527
Licensing Income3,059667
Total revenue from operations254,705208,021
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2026
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 the
relevant agreement provided that it is probable that economic benefits will flow to the Company and the
amount of revenue can be measured reliably.
EAP
WORKING TO IMPROVE YOUR HEALTH | 76
FINANCIAL STATEMENTS 2025-2026
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2026
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.
AP
6. Segment Reporting
Operating Segments
Australia
$’000
New
Zealand
$’000
Asia
$’000
Rest of
World
$’000
Head
Office
$’000
Total
$’000
31 March 2026
Revenue - Sale of goods150,82659,70513,92823,676 -248,135
Revenue - Royalties - -1,7201,791 -3,511
Revenue - Licensing - - -3,059 -3,059
Total revenue150,82659,70515,64828,526 -254,705
Other (expense)/Income -- -(410) -(410)
Depreciation - ROU assets53563 - -275873
Depreciation - Other16 - - -192208
Amortisation - - -2,618 -2,618
Operating profit / (loss)30,3179,4013,753(5,987)(13,039)24,445
Finance income - - - -66
Interest expense - Loans - - - -(2,217)(2,217)
Interest expense - Lease
liabilities
(102)(14) - -(153)(269)
Other finance gains/(losses) - - - -(91)(91)
Profit / (loss) before tax30,2159,3873,753(5,987)(15,494)21,874
Total assets73,63966,89654773,0872,841217,010
ROU assets552151 - -2,2602,963
Property plant and equipment39 - - -360399
Pascomer IP - - -12,500 -12,500
Other intangible assets - - -51,801 -51,801
Total liabilities15,70947,1 4 956,37738,701107,941
Capital expenditure * - - -9,6411169,757
*Capital expenditure includes both intangible and tangible asset additions.
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 77
FINANCIAL STATEMENTS 2025-2026
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2026
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 assets51159 - -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.
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.
Inter-segment 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$49.9m (2025 NZ$40.3m) and from one customer of the New Zealand
segment (also being a licensed wholesaler) represents approximately NZ$30.8m (2025: NZ$27.1m) of the
Group’s total revenues.
WORKING TO IMPROVE YOUR HEALTH | 78
FINANCIAL STATEMENTS 2025-2026
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2026
7. Operating Profit
Note
2026
$’000
2025
$’000
Profit before tax21,87416,034
After charging the following specific expenses
Finished goods materials included in cost of sales142,512115,371
Inventory write off included in cost of sales1,642937
Fees paid to Auditors8424361
Short term rental expenses - premises191161
Share options expense/(reversal)52(41)
Short term employee emoluments (*)
Selling and distribution expenses13,11111,509
General and administration expenses4,4653,791
Research and development expenses3,7474,050
21,32319,350
Research and development expenses
Business development6,0955,716
New market development1,2341,728
7,3297,444
Depreciation
Plant and machinery94104
Furniture and fittings9835
Vehicles1624
ROU equipment33
ROU vehicles459448
ROU buildings411380
1,081994
Amortisation
Patents215207
Software11
Development costs2,0051,087
Registration costs397380
2,6181,675
Finance costs/(Income)
Interest on borrowings2,2172,542
Interest on ROU liabilities269279
Foreign exchange (gains)/losses(757)(725)
Derivative (gains)/losses844(435)
Other financing costs/(gains)4(22)
2,5771,639
* This includes contributions recognised as an expense
for defined contributions1,137912
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 79
FINANCIAL STATEMENTS 2025-2026
8. Fees Paid to Auditors
2026
$’000
2025
$’000
Fees paid to Deloitte Limited
Audit of annual financial statements349288
Review of interim financial statements4847
Total fees paid to Deloitte Limited397335
Fees paid for Non-Deloitte Limited audits
Audit of annual financial statements for AFT Pharmaceutical (HK) Limited11
Audit of annual financial statements for AFT Pharmaceutical (UK) Limited1211
Audit of annual financial statements for AFT Pharmaceutical (EUR) Limited1414
Total fees paid for Non-Deloitte Limited audits2726
Total fees paid to auditors424361
9. Trade and Other Receivables
2026
$’000
2025
$’000
Trade receivables73,58553,610
Less provision for customer rebates(15,460)(10,414)
58,12543,196
Expected credit loss - -
Prepayments & sundry debtors6,1125,368
Total trade and other receivables64,23748,564
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2026
Customer rebates represent volume discounts and other rebates for which the customer has a right
to offset for net payment. For rebates not invoiced at reporting date, these are estimated based on
agreements with customer 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 20263,1841,6157712,0367,606
31 March 20252,7853368403064,267
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 2026
Current
$’000
Current to
1 month
$’000
Greater
than 1
month
$’000
Total
$’000
Expected loss rate**0.03%
Gross carrying amount65,9793,1844,42273,585
Expected credit loss allowance provision -
Short term loss allowance provision -
Long term loss allowance provision -
WORKING TO IMPROVE YOUR HEALTH | 80
FINANCIAL STATEMENTS 2025-2026
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2026
As at 31 March 2025
Current
$’000
+1 Month
$’000
>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 -
*Expected credit losses are negligible.
The average credit period on sale of goods is 69 days (2025: 54 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 (2025: nil).
AP
10. Inventories
2026
$'000
2025
$'000
Inventory on hand76,18750,212
Provision for obsolescence(2,121)(1,736)
Total inventories74,06648,476
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.
AP
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 81
FINANCIAL STATEMENTS 2025-2026
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 20241,4325132023,9181,875587,998
Net foreign currency
exchange differences
3 - - -18 -21
Additions79202 -6149(45)392
Disposals(2) - -(250) -(252)
Balance at 30 March 20251,5127152023,9241,792138,158
Net foreign currency
exchange differences
3113365138 -250
Additions9323 -846182 -1,144
Disposals - - -(800) - -(800)
Balance at 31 March 20261,6367512054,0352,112138,752
Accumulated depreciation
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 30 March 2025(1,387)(413)(150)(2,095)(857)(6)(4,908)
Net foreign currency
exchange differences
(32)(1)(2)(74)(92) -(201)
Depreciation(94)(98)(16)(411)(459)(3)(1,081)
Disposals - - -800 - -800
Balance at 31 March 2026(1,513)(512)(168)(1,780)(1,408)(9)(5,390)
Carrying amounts
Balance at 30 March 2025125302521,82993573,250
Balance at 31 March 2026123239372,25570443,362
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2026
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.
AP
WORKING TO IMPROVE YOUR HEALTH | 82
FINANCIAL STATEMENTS 2025-2026
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2026
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 re-measured 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 re-measured 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
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 83
FINANCIAL STATEMENTS 2025-2026
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 202412,5001,2348,57230,4353,97253357,246
Additions -5571,2384,408467 -6,670
Disposals -(26)(46)(122)(37) -(231)
Balance at 30 March 202512,5001,7659,76434,7214,40253363,685
Additions -1961,6927,209544 -9,641
Disposals -(13)(442)(315)(503) -(1,273)
Balance at 31 March 202612,5001,94811,01441,6154,44353372,053
Accumulated amortisation
Balance at 30 March 2024 - -(361)(1,689)(1,206)(531)(3,787)
Amortisation - -(380)(1,087)(207)(1)(1,675)
Disposals - - - - - - -
Balance at 30 March 2025 - -(741)(2,776)(1,413)(532)(5,462)
Amortisation - -(397)(2,005)(215)(1)(2,618)
Disposals - -10 -318 -328
Balance at 31 March 2026 - -(1,128)(4,781)(1,310)(533)(7,752)
-
Carrying amounts -
Balance at 30 March 202512,5001,7659,02331,9452,989158,223
Balance at 31 March 202612,5001,9489,88636,8343,133-64,301
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2026
WORKING TO IMPROVE YOUR HEALTH | 84
FINANCIAL STATEMENTS 2025-2026
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 had the valuation reviewed during the current year. In the process of the review the assumptions
used in the valuation were updated to include the markets of Switzerland, the Middle East, South Korea, and
Canada using the same peak penetration and probability of success rates. Based on the review the Group
remains confident in the carrying value included.
During the current year the Group signed licensing agreements for both the Port Wine Stain and Facial
Angiofibroma indications for the territory of Korea.
E
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2026
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 85
FINANCIAL STATEMENTS 2025-2026
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 2026
WORKING TO IMPROVE YOUR HEALTH | 86
FINANCIAL STATEMENTS 2025-2026
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2026
13. Income Tax
2026
$’000
2025
$’000
Tax expense
Profit before tax21,87416,034
Tax calculated at domestic tax rates applicable6,1254,490
Adjustment due to different tax rates of subsidiaries operating in different
jurisdictions
899602
Tax on expenses not deductible8421
Tax on losses recognised -(787)
Prior year tax adjustment687308
Tax expense7,79 54,634
Comprising
Current tax:
Current tax on profits for the year9,8951,088
Adjustment for current tax of prior year - -
Deferred tax(2,100)3,546
7,79 54,634
Deferred tax balance
Deferred tax (liability)/asset804(1,296)
Deferred tax (liability)/asset804(1,296)
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 2026, the Group recognised deferred tax assets on temporary differences
totalling $804k (2025 $nil) 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-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)
Movements149 -(1,351)3,3022,100
Prior period adjustments - - - - -
31-Mar-261,248 -(9,879)9,435804
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 87
FINANCIAL STATEMENTS 2025-2026
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.
The Group continues to calculate the current and deferred tax balances, without claiming a tax deduction
for product registration costs that were capitalised during the years 2019 to 2022. This expenditure,
totalling $4.1m, would be included in a s113 application to the Commissioner of Inland Revenue pending
a successful outcome of the Group’s binding ruling application (see note 3. Significant Transactions and
Events in the Financial Year)
AP
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2026
14. Interest Bearing Liabilities
2026
$’000
2025
$’000
Current lease liabilities935728
Non-current lease liabilities2,5942,586
Related party loan1,6941,083
BNZ overdraft9,884 -
BNZ Term loans current portion - -
BNZ Term loans non-current portion39,00025,600
Total54,10729,997
Opening balance of BNZ loan25,60028,200
BNZ loans drawn down92,40016,600
Repayment of principal(79,000)(19,200)
Closing balance39,00025,600
The BNZ loans have a general security over the assets of the Group together with a Group guarantee.
WORKING TO IMPROVE YOUR HEALTH | 88
FINANCIAL STATEMENTS 2025-2026
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2026
On 5th December 2025 the BNZ facility was renewed for a further three-year term through to
8th December 2028. The facility retains a) a $48 million term loan, consisting of a floating interest rate
portion of $32 million and two fixed interest rate portions of $8 million each, with the fixed rates maturing
on the 21st of December 2027 and the 8th of December 2028 respectively b) a $2.0 million overdraft.
Interest on the floating rate portion of the term loan is the BKBM rate plus a margin of 1.98%. The fixed
portions of the term loan are charged interest at rates of 5.17% and 5.31%. On the 21st of December 2027
the fixed rate of 5.17% on one fixed portion reverts to the floating rate applicable at that time, with the other
fixed portion maintaining its rate until the term loan matures. Interest on the overdraft is the BNZ market
connect base rate plus a margin of 0.48%. The non fixed interest rates are reset on a quarterly basis.
The draw down on the term loan at year end was $39 million with a floating rate of 4.49% applied
to $23 million and the balance of $16 million at the respective fixed interest rates.
To further meet the short-term cash requirements of the Group the overdraft facility was increased
by an additional $10 mil for a period of three months commencing on the 26th of February.
Consistent with the three-year facility, interest on the short-term increase is the BNZ market connect
base rate plus a margin of 0.48%. The interest rate applied at year end was 6.01%, inclusive of margin.
As at year end the Group overdraft balance was (9.8 mil) (2025: 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 and South Africa. Interest is calculated based on AFT’s borrowing rate plus a
margin of 1.5%.
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.
Profit share provisions are based on profit sharing arrangements with suppliers which are estimated
on achieving expected set margin targets and are expected to be utilised within the next 12 months.
These are included as an expense in cost of sales.
AP
AP
15. Trade and Other Payables
2026
$’000
2025
$’000
Trade payables29,59425,115
GST/VAT payable2,5331,544
Employee entitlements2,7172,589
Other payables and accruals4,3743,857
Total39,21833,105
16. Provisions
2026
$’000
2025
$’000
Opening balance of profit shares at 1 April5,6657,331
Prior period provision utilised to date(4,595)(6,179)
Provision utilised(4,970)(1,343)
Additional provisions required10,5395,856
Closing balance of profit shares at 31 March6,6395,665
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 89
FINANCIAL STATEMENTS 2025-2026
17. Share Capital
Ordinary shares are classified as equity.
2026
Shares
2025
Shares
2026
$'000
2025
$'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
2026
Shares
2025
Shares
2026
$'000
2025
$'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 (2025: no shares were issued).
Staff share options
During the period no staff share options were exercised (2025: no staff share options were exercised,).
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2026
18. Earnings Per Share
2026
$'000
2025
$'000
Earnings used in the calculation of basic and diluted earnings per share
Profit after tax14,73011,962
Less Redeemable Preference shares dividend - -
Net Profit after tax attributable to Ordinary shareholders14,73011,962
Weighted average number of ordinary shares for the
purposes of basic and diluted earnings per share
104,866,260 104,866,260
Earnings per share
Basic profit per share ($)$0.14$0.11
Diluted profit per share ($)$0.14$0.11
Basic earnings per share is computed by dividing net earnings by the weighted average number of ordinary
shares outstanding during each period.
AP
WORKING TO IMPROVE YOUR HEALTH | 90
FINANCIAL STATEMENTS 2025-2026
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2026
19. Dividends Per Share
On 4 July 2025 payment of a dividend of 1.8 cent per share or approximately $1.9 million was paid, this was
not imputed. A dividend of 1.6 cents per share, or approximately $1.7 million, was declared to the ordinary
shareholders during the prior year.
20. Staff Share Options
20262025
Average
exercise price
$ per shareOptions
Average
exercise price
$ per shareOptions
Balance at beginning of year3.46164,400 3.46510,000
Issued3.46- 3.46 -
Forfeited3.46- 3.46 -
Exercised *3.46- 3.46 -
Lapsed 3.46- 3.46(345,600)
Balance at end of year**3.46164,400 3.46164,400
* Weighted average share price for options exercised during the period $nil (2025: $nil)
** Of the 164,400 outstanding options, none are currently exercisable (2025: nil)
Share options outstanding at the end of the year have the following expiry dates, exercise dates and
exercise prices:
20262025
Expiry month
Exercisable
month
Exercise
price
May 2026May 20243.46 - -
May 2027May 20253.46 - -
May 2028May 20263.46 164,400164,400
Total share options outstanding 164,400164,400
The weighted average remaining contractual life of options outstanding at the end of the period was
2.2 years (2025: 3.2 years)
Share options reserve
2026
$’000
2025
$’000
Balance at beginning of year41139
Current year amortisation5241
Options lapsed transferred to retained earnings -(139)
Balance at end of year 9341
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 91
FINANCIAL STATEMENTS 2025-2026
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.
AP
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2026
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.
22. Capital Commitments
The Group has no capital commitments at 31 March 2026 (31 March 2025: nil).
WORKING TO IMPROVE YOUR HEALTH | 92
FINANCIAL STATEMENTS 2025-2026
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2026
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 $91k (2025: gain $1,182k). The balance of gains/losses
are derived from the restatement of monetary balances at the spot rate on the period-end balance date of 31
March 2026 and settlement of transactions during the period.
In total, the Group had financial assets and liabilities denominated in the following currencies:
Currency
20262025
Assets
NZD$’000
Liabilities
NZD$’000
Assets
NZD$’000
Liabilities
NZD$’000
AUD52,9366,45041,3534,859
USD8,7373,7425,4124,867
MYR1,09254701
GBP824201850442
EUR7,22612,1415,3187, 6 37
SGD1,044731,03330
CNY5023131241
HKD4 -32
YEN -6 -9
CAN9723 - -
ZAR869289 - -
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 93
FINANCIAL STATEMENTS 2025-2026
The following forward foreign exchange contracts were held at 31 March 2026:
Forward Foreign Exchange Contracts
Buy currency
Buy currency
amount ‘000
Sell amount
NZD$’000
Buy amount
NZD$’000
Fair value
NZD$’000
EUR - - - -
AUD17,75020,20619,269937
USD - - - -
Sell currency
Sell currency
amount $’000
Buy amount
NZD$’000
Sell amount
NZD$’000
Fair value
NZD$’000
AUD -
Total asset as at 31 March 2026 -
Total liability as at 31 March 2026937
The following forward foreign exchange contracts were held at 31 March 2025:
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 -
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2026
• 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 2026, with the largest debtor being
AU$12.7m (31 March 2025: AU$11.1m). 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; an overdraft position
with the Bank of New Zealand at 31 March 2026 (2025 1.9%), and 3.9% at NAB Bank (2025: 4.0%).
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.
WORKING TO IMPROVE YOUR HEALTH | 94
FINANCIAL STATEMENTS 2025-2026
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2026
The liquidity/maturity profile of the liabilities (inclusive of derivative assets and liabilities) is as follows:
31 March 2026
< 1 year
$’000
1-2 years
$’000
2-5 years
$’000
> 5 years
$’000
TOTAL
$’000
Trade and other payables(39,218) - - -(39,218)
Borrowings(2,475)(2,632)(40,933) -(46,040)
Overdraft Facility(9,884) - - -(9,884)
Related Party Loans(1,694) - --(1,694)
Lease liabilities(1,107)(780)(1,742)(427)(4,056)
Derivative instruments (outbound)(20,206) - - -(20,206)
Derivative instruments (inbound)19,269-- -19,269
Total(55,315)(3,412)(42,675)(427)(101,829)
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)
Related Party Loans (1,083) - --(1,083)
Derivative instruments (outbound)(14,402) - - -(14,402)
Derivative instruments (inbound)14,594 - - -14,594
Total(37,317)(27,963)(1,772)(1,271)(68,323)
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.
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 95
FINANCIAL STATEMENTS 2025-2026
25. Investment in Subsidiaries
Interest held
2026
%
2025
%
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 UK
AFT Pharmaceuticals (HK) Limited100%100%Hong KongNo activity
AFT Pharmaceuticals (CAN) Limited100%100%Canada
Distribution of pharmaceuticals
in Canada
AFT Pharmaceuticals US Inc100%100%USA
Distribution of pharmaceuticals
in US
AFT Pharmaceuticals (SA) Limited100%100%South Africa
Distribution of pharmaceuticals
in SA
AFT Pharmaceuticals Sinoject Limited70%70%New Zealand
Development and Licensing
of Pharmaceuticals
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2026
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
WORKING TO IMPROVE YOUR HEALTH | 96
FINANCIAL STATEMENTS 2025-2026
Notes to the Financial Statements (Continued)
For The Year Ended 31 March 2026
26. Significant Events After Balance Sheet Date
On 21 May 2026 the Board approved the payment of a dividend of 2.5 cents per share of approximately
$2.6 million.
On the 21st of April the Commissioner of Inland Revenue issued a private ruling under section 91 E of the
Tax Administration Act, confirming the deductibility of product registration costs for tax purposes.
The Group is currently applying for amendments to returns filed for the 2019 to 2022 income years
to claim tax deductions for capitalised registration costs not previously claimed supported by the positive
binding ruling. Reductions in income tax payable will be accounted in the year IRD approves amendments
if applicable
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
2026
$’000
2025
$’000
Director fees542503
Executive salaries1,8091,756
Short term benefits467480
Key management compensation2,8182,739
Related Party Loan1,6941,083
Key management includes external directors, the Chief Executive Officer, the Chief of Staff, the Chief
Financial Officer and the Director of International Business Development. These positions are mainly
responsible for planning, controlling and directing the activities of the business.
Total remuneration of $308k 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 2026 (2025: $264K)
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 97
FINANCIAL STATEMENTS 2025-2026
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 2026 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.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
Marree
Atkinson
Atkinson Family TrustDiscretionary Beneficiary of the
trust, which holds shares in AFT
HAMA HoldingsDirector
David Flacks Vero Liability Insurance New Zealand LimitedDirector and Chairman
(Ceased September 2025)
Flacks & Wong LimitedDirector
Vero Insurance New Zealand LimitedChairman and Director
(Ceased September 2025)
Todd Corporation LimitedDirector and Chairman
(Assumed Chair September 2025)
Angel Association of New ZealandChairman
Ted Witek Trudell Medical InternationalDirector
Lumira VenturesSpecial advisor
TCBCapital advisor
Kuano LimitedDirector
Allison Yorston Suntory Beverage & Food OceaniaChief Marketing Officer
(Ceased 11 April 2025)
Griffins SnacksDirector of Marketing, Griffins
Snacks (14 Apr 2025)
WORKING TO IMPROVE YOUR HEALTH | 98
STATUTORY DISCLOSURES
Interest in Transactions With the Company and Use of Information
No directors have disclosed interests in transactions (1) of the Companies Act 1993 during the financial year
requested to disclose or use Company Information required under section 145 (3) of the Companies Act.
Acquisitions or Disposals of Shares in AFT
During the year ending 31 March 2026, the following in AFT ordinary shares as required under
sections 146-149:
• on 1 September 2025 David Mark Flacks & Adina Rita Betty Halpern as trustees of Waitemata Family
Trust disclosed the acquisition of 17,722 shares
• on 4 July 2025 and 27 June respectively Hartley Atkinson (jointly with Colin McKay) as trustees of the
Atkinson Family Trust, disclosed the acquisition of 17,755 shares in AFT and then 200,000 shares in AFT.
Relevant Interests in AFT’s Shares
In accordance with the NZX Listing Rule 3.7.1 (d), at 31 March 2026 Directors had a relevant interest in AFT
ordinary shares as follows:
DirectorShareholderNumberShare of
issued capital
Hartley AtkinsonHartley Atkinson & Colin Mckay72,259,49668.91%
Hama Holdings Limited867,8260.86%
David FlacksDavid Mark Flacks & Adina Rita Betty Halpern158,7640.15%
JBWere (NZ) Nominees Limited37,722 0.02%
Andrew LaneAndrew Hamish Lane95,0000.091%
Remuneration and Other Benefits
Directors’ remuneration and other benefits in the financial year ended 31 March 2026 are detailed
in on pages 59 to 63 of this report. For the purposes of section entries were made in the Interests Register
in relation to Directors during the financial year ended 31 March 2026.
Director Remuneration and other benefits
David Flacks, Andrew Lane,
Ted Witek
The increase in Directors fees to take effect on 1 April 2025, on the
terms set out in the 20 May 2025 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 20 May 2025 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.
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 2025. AFT provides insurance for Directors of AFT, in relation to any act or
omission in their capacity as Directors on 31 October 2025 and costs incurred by that Director in relation
to defending and settling a claim.
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 99
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 2026:
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 2026 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 - 1,000 894 45.31% 363,547 0.35%
1,001 - 5,000 648 32.84% 1,677,277 1.60%
5,001 - 10,000 225 11.40% 1,682,111 1.60%
10,001 - 50,000 156 7.91% 3,386,429 3.23%
50,001 - 100,000 21 1.06% 1,494,745 1.43%
100,001 - and over 29 1.47% 96,262,151 91.80%
As at 30 April 2026 there were 12 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 2026 in his capacity as a Director
of AFT Pharmaceuticals (AU) Pty limited.
• Donald MacKenzie received A$50,000 during the year ended 31 March 2026 in his capacity as a Director
of AFT Pharmaceuticals (AU) Pty limited.
• JED Pharma received EUR$12,000 during the year ended 31 March 2026 in relation to Eddie Townsley
acting as Directors of AFT Pharmaceuticals (EUR) Limited.
WORKING TO IMPROVE YOUR HEALTH | 100
STATUTORY DISCLOSURES
Top 20 Shareholders
The top twenty holders of AFT’s ordinary shares as at 30 April 2026 are as follows:
NameShares
Share of
issued capital
Hartley Atkinson & Colin Mckay 72,259,496 68.91%
Accident Compensation Corporation - NZCSD 7,397,399 7.05%
Forsyth Barr Custodians Limited 5,366,681 5.12%
Hsbc Nominees A/C Nz Superannuation Fund Nominees Limited -
NZCSD 1,687,342 1.61%
Bnp Paribas Nominees (NZ) Limited - NZCSD 1,035,696 0.99%
Bnp Paribas Nominees (NZ) Limited - NZCSD 1,009,539 0.96%
New Zealand Depository Nominee Limited 916,622 0.87%
Queen Street Nominees Ltd No.6 - NZCSD 901,087 0.86%
Hama Holdings Limited 867,826 0.83%
Forsyth Barr Custodians Limited 845,129 0.81%
Queen Street Nominees Ltd No.2 - NZCSD 414,254 0.40%
Garrett Smythe Limited 390,912 0.37%
Custodial Services Limited 332,205 0.32%
FNZ Custodians Limited 328,622 0.31%
Jp Morgan Nominees Australia Limited 300,000 0.29%
Hsbc Nominees (New Zealand) Limited - NZCSD 223,644 0.21%
Joeri Yvonne Jozef Sels 212,832 0.20%
Queen Street Nominees Ltd No.4 - NZCSD 202,699 0.19%
Jbwere (NZ) Nominees Limited 201,040 0.19%
David Mark Flacks & Adina Rita Betty Halpern 158,764 0.15%
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 2026 in respect of the number of quoted voting
products noted below. As at the balance date 31 March 2026 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 Trust72,259,49668.91%
Accident Compensation Corporation (ACC)7,397,3997.05%
NZX Waivers and Exercise of Powers
NZX RegCo did not grant any Waivers specific to AFT during the financial year ending 31 March 2026..
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.
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 101
APPENDICES
WORKING TO IMPROVE YOUR HEALTH | 102
APPENDIX 1: CLIMATE RESILIENCE
APPENDIX 1
CLIMATE RESILIENCE
AFT Pharmaceuticals FY26 GHG Emissions by Region (t CO
2
e)
ScopeCategory AFT (Consolidated)
t CO
2
e
NZAUUKUSCANHKEU
ASIA
Scope 1
Mobile combustion271.1033.82237.28------
Total Scope 1271.1033.82237.28------
Scope 2
Purchased electricity
(location-based)
17.149.177. 97------
Purchased electricity
(market-based)
20.3810.2910.09------
Total Scope 2
(location-based)
17.149.177. 97------
Total Scope 2
(market-based)
20.3810.2910.09------
Scope 3
Category 3:
Fuel and energy-
related activities
67.849.0158.83------
Category 4: Upstream
transportation and
distribution
2,340.561,146.95991.440.73129.992.5321.0947. 410.42
Category 6:
Business travel
231.39142.4888.800.11-----
Category 7:
Employee commuting
59.9849.897. 9 32.16-----
Total Scope 32,699.761,391.321,392.243.00129.992.5321.0947. 410.42
Total GHG Emissions
(location-based)
2,988.001,391.321,392.243.00129.992.5321.0947. 410.42
Total GHG Emissions
(market-based)
2,991.241,392.441,394.363.00129.992.5321.0947. 410.42
METRICS AND TARGETS
GHG Emissions
GHG emissions are presented as tonnes of carbon dioxide equivalents (t CO₂e).
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 103
Measurement Details
DetailApproach
Measurement period1st April 2025 to 31st March 2026
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 approachOperational Control consolidation approach
Organisational boundariesAFT Pharmaceuticals Limited and each of its subsidiaries are included in
the inventory. No entities have been excluded.
Emissions factors and Global
Warming Potential (GWP)
sources
NZ Ministry for the Environment 2025 (IPCC Fifth Assessment Report,
GWP100); BraveTrace Residual Supply Mix 2023/24; Australia DCCEW
2025 (IPCC Fifth Assessment Report, GWP100)
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 the Scope 1
and 2 inventory.
Category 1: Purchased goods and services, Category 5: Waste generated in
operations, Category 8: Downstream transportation and distribution, and
Category 12: End-of-life treatment of sold products have been excluded
from the Scope 3 inventory.
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.
WORKING TO IMPROVE YOUR HEALTH | 104
APPENDIX 1: CLIMATE RESILIENCE
APPENDIX 1: CLIMATE RESILIENCE
GHG Emissions 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
New Zealand and Australia form the primary operations within the GHG emissions reporting boundary.
AFT’s other operations are distribution-based and do not include physical offices, controlled facilities,
or vehicle fleets. As a result, there are no Scope 1 or Scope 2 emissions associated with these locations.
Emissions related to these activities are primarily captured within Scope 3, reflecting the outsourced and
value chain nature of these operations.
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 105
Emission Sources, Methodologies, Uncertainties, and Assumptions
AFT’s emissions inventory is prepared on a 10+2 basis. Actual consumption and activity data is collected
for the period 1 April 2025 – 31 January 2026. Emissions for the remaining two months (February, March)
are estimated by applying average monthly emission intensities from the preceding 10-month period,
adjusted where known material changes in operational activity are identified.
This method is applied consistently across all reported emission scopes and categories. Estimated figures
are reconciled against actuals in the following year’s inventory, with any material variances noted as
prior-period adjustments, consistent with the GHG Protocol’s guidance on recalculation.
Emission
sourceActivityMethodologies, uncertainties and assumptions
Emission factor
source
Scope 1
Category: Direct emissions and removals
Mobile
combustion
Regular petrol;
Premium
petrol; Diesel
Activity data 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
2025 Guide (IPCC
Fifth Assessment
Report, GWP100)
Scope 2
Category: Imported emissions from imported energy
Purchased
electricity
Purchased
electricity
Activity data 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 2025
Guide (IPCC Fifth
Assessment Report,
GWP100)
BraveTrace Residual
Supply Mix 2024/25
Australia DCCEW
2025 (IPCC Fifth
Assessment Report,
GWP100)
Scope 3
Category 3: Fuel and energy related activities
Transmission
losses
Electricity
T&D losses
Activity data 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
2025 Guide (IPCC
Fifth Assessment
Report, GWP100)
Australia DCCEW
2025 (IPCC Fifth
Assessment
Report, GWP100)
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APPENDIX 1: CLIMATE RESILIENCE
APPENDIX 1: CLIMATE RESILIENCE
Emission
sourceActivityMethodologies, uncertainties and assumptions
Emission factor
source
Well-to-tank
of mobile fuel
combusted
Well-to-tank
(petrol),
Well-to-tank
(diesel)
Activity data 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.
Australia DCCEW
2025 (IPCC Fifth
Assessment
Report, GWP100)
Category 4: Upstream transportation and distribution
Upstream
freight
Road freight;
Air Travel
Freight: Short
haul, Air Travel
Freight: Long
haul, Sea
Freight
Activity data has been sourced from supplier
reports and information.
We have assumed all supplier reports and
information is accurate and all activity has
been captured.
In some instances, judgements have been
made and distance travelled for consignments
has been assumed.
Default emission factors have been used are not
vehicle specific which presents uncertainty.
Activity data was only available for 10 months
of the reporting period for some suppliers.
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
2025 Guide (IPCC
Fifth Assessment
Report, GWP100)
Category 6: Business travel
Staff air travelDomestic,
Int. Economy
(<3,700km),
Int. Business
(<3,700km),
Int. Economy
(>3,700km),
Int. Business
(>3,700km)
Activity data has been sourced from
expense claims.
We have assumed all supplier reports are
accurate and all activity has been captured.
Where domestic travel occurred outside of
New Zealand, this has been measured as
Int. Economy (<3,700km).
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
2025 Guide (IPCC
Fifth Assessment
Report, GWP100)
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 107
Emission
sourceActivityMethodologies, uncertainties and assumptions
Emission factor
source
Staff
accommodation
Accommodation
New Zealand,
Canada, China,
France,
Hong Kong,
Japan,
Singapore,
United States,
Australia,
United Kingdom
Activity data has been sourced from
expense claims.
Number of nights per country is calculated
using a default cost per night.
Assumes all accommodation is expensed correctly.
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
2025 Guide (IPCC
Fifth Assessment
Report, GWP100)
Staff road travel
Uber, Taxis, or
other rideshare,
Rental Vehicle
(Petrol)
Activity data has been sourced from
supplier reports.
We have assumed all supplier reports are
accurate and all activity has been captured.
For rental vehicle activity, 50km travelled
per day is assumed.
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.
Default factors have been used and are not
vehicle specific which presents uncertainty.
Ministry for the
Environment
2025 Guide (IPCC
Fifth Assessment
Report, GWP100)
Category 7: Employee commuting
Employee
commuting
Personal petrol
vehicle,
public bus
Activity data has been sourced from a
commuting survey conducted internally.
They survey participants included 10 staff
members. Total employee commuting kms
were extrapolated out represent all employee
commuting.
Assumes the survey responses are representative
of the commuting behaviours of all AFT
employees. Assumes survey participants
provided accurate responses about commuting
behaviours. Assumes participants’ commuting
behaviours are consistent over the reporting
period. Assumes AFT’s employee count remains
static over the reporting period. Assumes
employees are working in the office 230 times
a year.
High level of uncertainty as sample data has
been used and employee commuting behaviours
are likely to be inconsistent across the reporting
period. Default factors have been used and are
not vehicle specific which presents uncertainty.
Ministry for the
Environment
2025 Guide (IPCC
Fifth Assessment
Report, GWP100)
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APPENDIX 1: CLIMATE RESILIENCE
APPENDIX 1: CLIMATE RESILIENCE
GHG Emissions Targets
As disclosed in last year’s Annual Report, AFT set greenhouse gas (GHG) emissions reduction targets.
These targets apply to AFT’s UK subsidiary operations, reflecting specific requirements within that market.
While AFT maintains emissions data across its broader operations, the establishment of formal emissions
reduction targets has to date been limited to the UK business. AFT will continue to review the scope of its
targets over time.
TermCoverage
Performance
against target
Alignment with limiting
warming to 1.5 degrees CelsiusUse of offsets
Target Commitment 1:
Reduce UK scope 1 GHG emissions by 42% by 2030 on a FY24 base year.
Near-
term
100% of
scope 1
22.16%
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.
Achievement
of these targets
do not rely on
offsets.
Target Commitment 2:
Reduce UK scope 2 (market-based) GHG emissions by 42% by 2030 on a FY24 base year.
Near-
term
100% of
scope 2
15.01%
absolute
increase on
FY24
The scope 1 and 2 targets are consistent with
reductions required to limit warming to below 1.5
degrees Celsius.
Achievement
of these targets
do not rely on
offsets.
Target Commitment 3:
Reduce UK scope 3 GHG emissions by 42% by 2030 on a FY24 base year.
Near-
term
100% of
scope 3*
Not reported
as FY26 is
the inaugural
year AFT is
reporting
its GHG
emissions by
jurisdiction.
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 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.
Target Commitment 4:
Reduce UK 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
as FY26 is
the inaugural
year AFT is
reporting
its GHG
emissions by
jurisdiction
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 line
with this methodology by using the SBTi’s publicly
available Corporate Net-Zero Standard Criteria and
Corporate Net-Zero 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 2026 | 109
Industry-Based Metrics
Emission sourceScopeUnit
Consumption
FY24FY25FY26
Regular petrol1L125,648.71105,365.8997,547.59
Premium petrol1L15,201.7014,057.2915,326.44
Diesel1L1,115.992,428.62558.19
Electricity2kWh117,787.00111,610.99103,130.69
Electricity T&D losses3kWh--103,130.69
Well-to-tank Petrol3L--112,874.03
Well-to-tank Diesel3L--558.19
Freight movements3tkm--36,419,485.50
Staff air travel3pkm--1,215,937.13
Staff hotel
accommodation
3Room per
night
--716.89
Staff road travel –
ubers/taxis
3$--19,978.63
Staff road
travel - Mileage
reimbursements and
rental vehicles
3km--18,260.42
AFT has not reported HFC-134A refrigerant due to this emission source being excluded from our GHG
emissions inventory on the basis that this has been identified as de minimis (<1%).
WORKING TO IMPROVE YOUR HEALTH | 110
APPENDIX 1: CLIMATE RESILIENCE
APPENDIX 1: CLIMATE RESILIENCE
To the intended users
Organisation subject to audit:
Audit Criteria:
Responsible Party: AFT Pharmaceuticals Limited
Intended users:
Senior leadership team
General public
Registered address:
Level 1, 129 Hurstmere Road, Takapuna, Auckland, 0622, New Zealand
Inventory period:
1/04/2025 - 31/03/2026
Inventory report:
Responsible Party's Responsibilities
Responsibilities of verifiers
AFT Pharmaceuticals Limited
Greenhouse Gas Protocol: A Corporate Accounting and Standard (2004), GHG
Protocol: Scope 2 Guidance , Greenhouse Gas Protocol: Corporate Value Chain
(Scope 3) Accounting and Reporting Standard
ISO 14064-3:2019
Technical Requirements – Audit V3
AFT Pharmaceuticals - Emissions Inventory Report FY26.pdf
Toitū Verification
We have reviewed the greenhouse gas emissions inventory report (“the inventory report”) for the above named
Responsible Party for the stated inventory period.
The Management of the Responsible Party is responsible for the preparation of the GHG statement in accordance
with Greenhouse Gas Protocol. This responsibility includes the design, implementation and maintenance of internal
controls relevant to the preparation of a GHG statement that is free from material misstatement.
Our responsibility as verifiers is to express a verification opinion to the agreed level of assurance on the GHG
statement, based on the evidence we have obtained and in accordance with the audit criteria. We conducted our
verification engagement as agreed in the audit letter, which define the scope, objectives, criteria and level of
assurance of the verification.
The International Standard ISO 14064-3:2019 requires that we comply with ethical requirements and plan and
perform the verification to obtain the agreed level of assurance that the GHG emissions, removals and storage in the
GHG statement are free from material misstatement.
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. 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.
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.
INDEPENDENT AUDIT OPINION
Audit Opinion v3.0
©Enviro-Mark Solutions Limited 2021
Page 1
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 111
Basis of verification opinion
Verification
Verification strategy
Basis for modified verification opinion
Verification level of assurance
GHG PROTOCOL CATEGORIES
GHG SCOPE
LOCATION BASED tCO
2
e
MARKET BASED tCO
₂e
LEVEL OF ASSURANCE
Scope 1 271.10271.10
Reasonable
Scope 2 17.1420.38
Reasonable
Scope 32,699.762,699.76
Limited
TOTAL INVENTORY
2,988.002,991.24
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 the Greenhouse Gas Emissions Inventory Report (the
‘Inventory Report’)/Emissions Inventory and Management Report of the organisation listed at the top of this statement
and described in the emissions inventory report for the period stated above.
The Inventory 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 Standard (2004), GHG Protocol: Scope 2
Guidance , Greenhouse Gas Protocol: Corporate Value Chain (Scope 3) Accounting and Reporting Standard.
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;
—reviewing emission factors for accuracy and appropriateness;
—reconciliation of air and sea freight related emissions;
The data examined during the verification were historical in nature.
The following qualifications have been raised in relation to the verification opinion:
The opinion is unmodified.
Audit Opinion v3.0
©Enviro-Mark Solutions Limited 2021
Page 2
WORKING TO IMPROVE YOUR HEALTH | 112
APPENDIX 1: CLIMATE RESILIENCE
APPENDIX 1: CLIMATE RESILIENCE
Responsible party's greenhouse gas assertion (claim)
Verification conclusion
Other information
VERIFIED BYAUTHORISED BY
Name:Sen MaAna Tatana
Position: Verifier, Toitū Envirocare Certifier, Toitū Envirocare
Signature:
Date verification audit: 1 April 2026
Date opinion expressed: 20 April 20267 May 2026
AFT Pharmaceuticals Limited has measured its greenhouse gas emissions in accordance with GHG Protocol in
respect of operations of its global organisation.
GHG Protocol
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 GHG Protocol: A Corporate Accounting and Reporting Standard ; and
• provide a true and fair view of the emissions inventory of the Responsible Party for the stated inventory period.
EMISSIONS - LIMITED ASSURANCE
Based on the procedures we have performed and the evidence we have obtained, nothing has come to our attention
that causes us to believe that the emissions, removals and storage defined in the inventory report:
• do not comply with GHG Protocol: A Corporate Accounting and Reporting Standard ; and
• do not provide a true and fair view of the emissions inventory of the Responsible Party for the stated inventory
period.
The responsible party is responsible for the provision of Other Information. The Other Information may include
emissions management and reduction plan and purchase of carbon credits, but does not include the information we
verified, and our auditor’s opinion thereon.
Our opinion on the information we verified does not cover the Other Information and we do not express any form of
audit opinion or assurance conclusion thereon. Our responsibility is to read and review the Other Information and
consider it in terms of the inventory. In doing so, we consider whether the Other Information is materially inconsistent
with the information we verified or our knowledge obtained during the verification.
Audit Opinion v3.0
©Enviro-Mark Solutions Limited 2021
Page 3
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 113
APPENDIX 2
MATERIAL SUSTAINABILITY DEFINITION MATTERS
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 ensuring
compliance with AFT’s Modern Slavery Policy. On environment, this
includes supplier compliance with our Supplier Code of Conduct,
which includes water use.
WORKING TO IMPROVE YOUR HEALTH | 114
APPENDIX 2: MATERIAL SUSTAINABILITY MATTERS DEFINITIONS
APPENDIX 2: MATERIAL SUSTAINABILITY MATTERS DEFINITIONS
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
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 115
Directory
AFT is a company incorporated with limited liability (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
DirectorsDr 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 Shareholders’ Meeting August 2026
Half-year end 30 September 2026
Half year results announcement November 2026
Financial year end 31 March 2027
WORKING TO IMPROVE YOUR HEALTH | 116
Notes
AFT PHARMACEUTICALS ANNUAL REPORT 2026 | 117
Level 1, 129 Hurstmere Road
Takapuna
Auckland 0622
New Zealand
+64 9 488 0232
www.aftpharm.com
---
INVESTOR
PRESENTATION
FY 2026 | 21 MAY 2026
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.
CONTINUED STRENGTH IN
ESTABLISHED ANZ BUSINESS
•FY26 Total Sales $254.7M, up 22% (17.6% 5-yr CAGR)
•Operating profit ahead of guidance at $24.4M
•Dividend of 2.5cps up 39%
•Growth focus with FY 27 $300m Turnover Target
AFT GLOBAL DISTRIBUTION
PARTNERSHIPS
•Agreements in 100+ countries
•Sales in 87 countries
PRODUCT LAUNCHES DRIVING
COMMERCIAL TRACTION
•7 R&D programs currently being
commercialized in multiple countries
•9 Licensing agreements closed in FY26
and 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
•Fridge-free IP project
•Significant Global Market Opportunities
EXPANDING GLOBAL FOOTPRINT
•Europe: UK & EU
•North America: USA & Canada
•Asia: China, Singapore, Malaysia &
Hong Kong
•Africa: South Africa
$300M Revenue Target Now in Sight
Building a larger and more diversified business through disciplined international expansion
An Unbroken Record of Growth
4
$8
$12
$17
$23
$26
$28
$33
$34
$40
$49
$56
$64
$69
$80
$85
$106
$113
$130
$157
$195
$208
$255
$0.0
$50.0
$100.0
$150.0
$200.0
$250.0
FY 2005FY 2006FY 2007FY 2008FY 2009FY 2010FY 2011FY 2012FY 2013FY 2014FY 2015FY 2016FY 2017FY 2018FY 2019FY 2020FY 2021FY 2022FY 2023FY 2024FY 2025FY 2026
OPERATING REVENUE (NZ$M)
AFT has delivered two more than two decades of un-interrupted growth by identifying unmet clinical need and
investing to develop and in-license intellectual property to meet those needs and improve health outcomes
17%
20 YR
CAGR
Investment in Growth Driving Long Term Value Creation
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH
5
KEY HIGHLIGHTS
•Full year operating revenue up 22% to $254.7 million (FY25: $208.0 million), driven by double-digit sales growth across all territories
•Product sales and royalties up 21% to $251.6 million (FY25: $207.4 million), supported by growth in Australia (19%), International (66%) and Asia (41%)
•EBITDA
1
of $28.8 million (FY25: $20.9 million) and operating profit of $24.4 million (FY25: $17.6 million) as earnings growth enables significant investment in
international business hubs and R&D
•Ongoing significant investment with FY27 guidance for increased operating profit of $28 million to $32 million; targeting $300 plus million revenue for FY27
5
1
EBITDA is a non-GAAP measure of financial performance and is defined and reconciled to NZ GAAP on page 17 of this presentation.
* FY20 Operating Profit normalised to exclude $9.8m gain on de-recognition of equity accounted investment.
$86.7
$114.9
$121.3
$139.8
$64.0
$69.0
$80.0
$85.0
$106.0
$113.1
$130.3
$156.6
$195.4
$208.0
$254.7
$-
$50.0
$100.0
$150.0
$200.0
$250.0
FY2016FY2017FY2018FY 2019FY 2020FY 2021FY 2022FY 2023FY 2024FY 2025FY 2026
NZD$(M)
AFT GROUP REVENUE
-$10.8
-$16.4
-$10.1
$6.1
$11.4
$10.7
$20.4
$19.7
$24.2
$17.6
$24.4
-$20.0
-$10.0
$0.0
$10.0
$20.0
$30.0
FY 2016FY 2017FY 2018FY 2019FY 2020FY 2021FY 2022FY 2023FY 2024FY 2025FY 2026
NZD$(M)
AFT GROUP OPERATING PROFIT*
Operating profit ex license incomeLicense income
Australia: Sustained Momentum in our Largest Market
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH
•Australia continued to be the primary driver of group performance in FY26, supported by broad-based strength across key OTC and
pharmacy brands and ongoing uptake in prescription medicines. Revenue up 19%, operating profit up 19%
•New product launches complemented performance and support longer-term organic growth. AFT’s active business development
programme continues to add to the pipeline, alongside ongoing investment in our proprietary R&D portfolio.
•We continue to see opportunities to improve operating leverage in Australia as the business continues to scale
6
$4.0
$9.6
$21.5
$20.7
$19.3
$15.5
$25.5
$30.3
$0.0
$10.0
$20.0
$30.0
FY 2023 FY 2024 FY 2025 FY 2026
NZ$M
AU OPERATING PROFT
$50.8
$66.5
$76.3
$84.3
$68.3
$76.7
$94.1
$108.2
$127.1
$150.8
$-
$20.0
$40.0
$60.0
$80.0
$100.0
$120.0
$140.0
$160.0
FY 2021FY 2022FY 2023FY 2024FY 2025FY 2026
NZ$M
AUSTRALIA REVENUE
New Zealand: Steady Growth with Ongoing Opportunities
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH
•New Zealand delivered another year of growth (revenue up 11%, operating profit up 7%) supported by continued momentum across key
categories and the ongoing expansion of our hospital injectables and prescription portfolio.
•The New Zealand business remains an important contributor to group cash generation and provides a strong base to support AFT’s
investment in international expansion and R&D initiatives
7
$3.7
$4.1
$5.1
$5.3
$8.3
$7.3
$8.8
$9.4
$0.0
$2.5
$5.0
$7.5
$10.0
FY 2023FY 2024FY 2025FY 2026
NZ$M
NZ OPERATING PROFT
$26.0
$28.0
$27.8
$31.7
$30.5
$35.1
$44.2
$48.7
$53.8
$59.7
$-
$10.0
$20.0
$30.0
$40.0
$50.0
$60.0
$70.0
FY 2021FY 2022FY 2023FY 2024FY 2025FY 2026
NZ$M
NEW ZEALAND REVENUE
Asia: Returned to Normalised Trading Conditions
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH
•Asia delivered a stronger FY26 result (revenue up 41% and operating profit up 111%) as full year trading normalised from one-off
disruptions in FY25
•China continues to be a key strategic focus, supported by continued growth in iron and vitamin supplements via cross-border e-
commerce and an expanding portfolio of distribution agreements
•Ongoing growth across Asia and launches into new territories – Thailand & Taiwan
$3.7
8
* Includes license income
$0.5
$2.1
$1.3
$1.7
$0.8
$2.5
$1.8
$3.8
$0.0
$1.0
$2.0
$3.0
$4.0
FY 2023FY 2024FY 2025FY 2026
NZ$M
ASIA OPERATING PROFT
$4.4
$7.5
$6.7
$8.1
$4.4
$5.5
$6.8
$10.7
$11.1
$15.6
$-
$2.0
$4.0
$6.0
$8.0
$10.0
$12.0
$14.0
$16.0
FY 2021FY 2022FY 2023FY 2024FY 2025FY 2026
NZ$ M
ASIA REVENUE
AFT’s Global
Reach
9AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH
Our medicines are
now available in 87
countries around the
world
International Expansion – Investing for Long Term Growth in New Markets
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH10
•International revenue from product sales and royalties of $25.5 million up 66% from $15.3
million in FY25 as customers returned to more normal buying pattern and the ongoing
scaling of international business hubs
•We expanded the territories in which products are sold or ordered to 87 up from 85 in Nov
2025 including Taiwan and Egypt
•Licensing of $3.0m up on $0.7m in FY25.
•Operating losses narrow to ($6.0) million from ($7.3) million in FY 25 as revenue growth
helps to offset growth investments
FY Product Sales & Royalties Licence Income
$7.8
$6.4
$10.8
$19.3
$15.3
$25.5
$2.1
$6.7
$0.9
$8.5
$0.7
$3.0
$9.9
$13.1
$11.7
$27.8
$16.0
$28.5
$0.0
$5.0
$10.0
$15.0
$20.0
$25.0
$30.0
FY 2021FY 2022FY 2023FY 2024FY 2025FY 2026
NZ$M
INTERNATIONAL REVENUE
3
4
7
9
20
28
43
46
61
73
80
87
0
20
40
60
80
100
FY 2015FY 2016FY 2017FY 2018FY 2019FY 2020FY 2021FY 2022FY 2023FY 2024FY 2025FY 2026
COUNTRIES
COUNTRIES WHERE MAXIGESIC IS SOLD AND ORDERED
Progressing Expansion of AFT’s Global Footprint
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH11
AFT PHARM UK
•Combogesic tablets distribution extended to >2500 stores (Boots, SuperDrug and now
independent pharmacies)
•Combogesic IV NHS formularies listings build momentum
•Expanding our product range with AFT IP and in-licensed products
•Expected to breakeven in FY27
AFT PHARM SOUTH AFRICA
•Secured significant existing pipeline of 14 product licenses from existing SA company
•Expanding with significant pipeline of new products
•Hired CEO experienced in the hospital market
•Expected to contribute to earnings in FY27
AFT PHARM CANADA
•Launched Combogesic IV; selected OTC offerings underway
•Hired CEO & Hospital Key Account Managers plus additional contract field force
•Additional launches planned in FY27 with a significant launch pipeline
Expanding markets for our proprietary IP and in-licensed new products
Progressing Expansion of AFT’s Global Footprint
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH12
AFT PHARM USA
•Large but complex market with significant opportunity
•Selected OTC launches and contract sales force
•Working closely with Hikma on Combogesic IV
•Full Combogesic Rapid launch
AFT PHARM EUROPE
•Licensing acquired products, AFT R&D products plus AFT Sinoject products
•Launches of acquired products underway this FY27
AFT PHARM HONG KONG
•Launching further selected AFT products
•A significantly expanding pipeline of new products
AFT PHARM SINGAPORE
•Extending into Private Hospital market
•Launching further selected AFT products
•A significantly expanding pipeline of new products
Expanding markets for our proprietary IP and in-licensed new products
Progressing Research and Development Investments
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH
13
Several programs have exited development and are moving to revenue generation; our R&D programme is also attracting interest
COMMERCIALISING AFT’S INTELLECTUAL PROPERTY
A significant number of licensing agreement discussions underway
Intravenous Iron Development Project - licensed to Chengdu-based Grand Life Sciences
Group, includes development and sales milestone payments
Maxigesic Multiple Dose Forms
•Rapid Dissolving Tablet (Patent 2039).
•Maxigesic Day/Night (AU patent 2035)
•Oral Liquid – additional formulation (Patent TBC). US file 3Q 27
•Dry Stick (Patent 2030). File 3Q 26
•IV & Pediatric IV (Patent 2031, 2035).
Hospital Injectables – license agreements started. Dossier filings started
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)
Pascomer – Orphan indication - licensing underway. Dossier filed in some key
jurisdictions
AU OTC Projects – filing 2 significant dossiers after completing clinical studies (assuming
successful) before end 2027. Both markets > A$50M
*Expensed and capitalised
9
10
6
8
9
10
12
12
15
$18
$0
$5
$10
$15
$20
FY 2021FY 2022FY 2023FY 2024FY 2025FY 2026
NZ$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.
PROJECTPATENTSPARTNERSFILINGPROGRESS/ MARKET /COMMENT
24 Hospital InjectablesNilSinoject - AFT 70%3Q 25 –> 4Q 27AFT affiliate market US$450M. 5 dossiers to be filed by end FY27 (31 Mar27)
Stability ProjectTBC
2
AFT – 80%4Q27-2Q 29Phase I – 5 products; Phase II – 9 products. Market > US$6 Bill
Migraine ProjectNil
1
Sinoject - AFT 70%3- 4Q 27Market US$180M (US$45M in AFT markets)
Pascomer PWS2040/2044AFT 100%1Q 28No approved treatment. Market potential > US$1bill even with low penetration
Iron IV (NCE
3
)2032/2035AFT - 45%4Q 28Market US$7.4Bill by 2033. Positive initial Phase III Study
Preparing Phase III global trial of ~1,366 patients
Antibiotic eye drop2037
2044
AFT 100% IP in-licensed
4
4Q 28No approved treatment and compounded. Analyst estimate >US$1Bill market
Pre-IND application filed with the US FDA; IND to be submitted 4Q 2026 - 1Q 2027
Strawberry BMs Topical2041/2044AFT 100% IP in-licensed
4
4Q 28-1Q29Market for orals US$650M by 2029. Market estimate > US$1 bill. Pre-IND filed, FDA feedback received
to guide IND submission and IND to be submitted 1-2Q 2027
Keloid Scars Topical2041AFT 100% IP in-licensed
4
3- 4Q 29No approved treatment. Unapproved topicals market US$1.5Bill growing to $2Bill (2035)
Formulation finalized and preparing for pre-IND submission 4Q26
Burning MouthTBC
2
AFT - 50%1Q 30No approved treatment. Testing market for BMS is US$464M (2023) and growing to US$805M (2033)
Injectable Novel Formulation2044AFT - 100% IP in-licensed
4
2- 4Q 30Potentially significant therapeutic advance. Market estimated to be US$3-3.7Bill by 2032-4
NasoSURF2036AFT - 90%TBCAddressing dosing consistency. Above Injectable Novel Formulation technology can be used.
1
Improved delivery platform
2
Patents under development and to be filed
3
New Chemical Entity
4
Royalties and payments due for licensed IP. Note: VLS project discontinued.
Operating leverage and investment in development
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH15
•Total revenue grew due to core growth in
Australasia, Asia, International and a
normalisation in trading patterns
•Gross Margin on product sales and royalties
dips due to portfolio mix and currency
•Seeing operating leverage with expenses
falling as share of total sales to 33.8%
•Operating expenses increase 16% as we
funded investments for growth
•Start up and scaling costs for the
business hubs
•Brand and market entry investments
•Increased research and development
expenses
Year to 31 March
2026Revenue2025
Revenue
∆%
$000%$000
Revenue254,705 208,021 22%
Gross profit110,551
43.4%
91,713
44.1%
Operating expenses and other income(86,106)
33.8%
(74,065)
35.6%
16%
Operating profit24,445 17,64838%
Finance expenses and other income(2,571)(1,614)
Ta x(7, 795)(4,634)
Profit/(loss) after tax14,079 11,40024%
Revenue from product sales and royalties
251,646
207,354 21%
Gross profit from product sales and royalties
107,492
42.7%
91,046
43.9%
18%
AFT is Well Funded – Well Positioned to Fund Growth Investments
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH
•Net debt at the end of March 2026 was $38.6
million reflecting
•Geo-political tensions – increasing
inventories
•Inventory acquired as part of Pharma
Dynamics acquisition in South Africa
•New debt facility of $50 million put in place in
December 2025
16
Year to 31 March
20262025
∆%
1H 26
$000$000$000
Current assets (excluding cash) 138,30397,232
94,822
Cash10,24011,110-8%
12,099
Non current assets 68,467 61,473
64,641
Total assets
217,010 169,81528%171,622
Current liabilities (excluding interest-bearing liabilities) 56,46343,256
37,777
Current interest-bearing liabilities 9,884 -
32,987
Non current liabilities (excluding interest-bearing liabilities)2,5943,882
2,871
Non current interest-bearing liabilities 39,000 25,600
-
Total liabilities
107,94172,73873,635
Total equity
109,06997,077
97,987
Total liabilities and equity
217,010169,81528%171,622
Growth Investment Underpinned by Ongoing Strong Cashflow
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH17
•Cash outflow follows
•Increased inventory
•International expansion and growth
initiatives
•Research and development projects
Year to 31 March
20262025
$000$000
Net cash from operating activities (9,539)13,176
Net cash used in investing activities (9,757) (6,951)
Net cash (used)/generated from financing activities 8,794(6,811)
Net increase/(decrease) in cash(10,502)(586)
Impact of foreign exchange on cash and cash equivalents (252) (344)
Opening cash and cash equivalents 11,11012,040
Closing cash and cash equivalents
35611,110
AFT PHARMACEUTICALS WORKING TO IMPROVE YOUR HEALTH
Outlook: Positioned to Drive Future Growth in Both Revenue and Earnings
•We expect to extend our growth record in FY27 as we drive towards our revenue goal of
$300 million plus through:
•continued expansion in Australasian markets;
•a strong programme of launches across International hubs;
•increasing contributions as those hubs scale (UK and South Africa expected to make a
contribution to earnings in FY 27)
•continued progress in R&D and regulatory milestones; and
•an active licensing programme that continues to monetise AFT’s intellectual property
and broadens our geographic reach.
•We will continue to make significant investment this financial year and we expect FY27
operating profit to reach between $28 million to $32 million.
18
APPENDIX
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
2025
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, Sinoject and Temperature Stable
Portfoilios 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)
Sinoject portfolio & Temperature Stable Drugs
NasoSurf – nasal nebuliser drug delivery
DermatologyCrystaderm – selected territories
Pascomer
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
2026
$000
2025
$000
Net profit after tax attributable to the owners of the parent
14,730
11,962
Less: Finance income
(6)
(25)
Add back: Interest costs
2,486
2,821
Add back other finance loss/(gain)
91
(1,182)
Add back: Depreciation
1,081
994
Add back: Amortisation
2,618
1,675
Add back: Income tax expense/(benefit)
7,795
4,634
EBITDA
28,795
20,879
FOR MORE INFORMATION
Dr Hartley Atkinson
Managing Director
Email: h
artley.atkinson@aftpharm.com
Malcolm Tubby
Chief Financial Officer
Email: m
alcolm.tubby@aftpharm.com
AFT Pharmaceuticals Limited
Level 1, 129 Hurstmere Road
Takapuna, Auckland 0622
New Zealand
www.aftpharm.com
---
AFT Pharmaceuticals Limited, Level 1, 129 Hurstmere Road, Takapuna, Auckland 0622, New Zealand
Incorporated in New Zealand ARBN:
ARBN 609 017 969
Results for announcement to the market
AFT Pharmaceuticals Limited
Reporting Period 12 months to 31 March 2026
Previous Reporting Period 12 months to 31 March 2025
Currency NZ$
Amount (000s) Percentage change
Revenue from continuing operations $254,705 Up 22%
Total Revenue $254,705 Up 22%
Net profit/(loss) from continuing operations $14,730 Up 23%
Total net profit/(loss) $14,730 Up 23%
Interim/Final Dividend
Quoted Equity Securities:
Amount per Quoted Equity Security $0.01800000
Imputed amount per Quoted Equity Security No imputation
Record Date 16/06/2025
Dividend Payment Date 04/07/2025
Current period Prior comparable period
Net tangible assets per Quoted Equity
Security
$0.43 $0.37
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 2026. These financial statements and the full year results
commentary dated 21 May 2026 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
21 May 2026
Audited financial statements accompany this announcement.
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.