Flacks said it saw the conditions as a temporary setback.
"We are seeing broad improvements in global markets as most countries around the world move to living with Covid-19 and we are confident of an acceleration of growth in the traditionally stronger second half of the financial year."
Dr Hartley Atkinson, AFT managing director, said it had grown New Zealand revenue by more than 15 per cent compared with the same period a year ago.
"Our New Zealand business, which although affected by Covid-19 restrictions in the latter part of the six-month period, demonstrates the unconstrained potential of our Australasian operations."
Asian markets had also performed well, he said.
But extended lockdowns in New South Wales and Victoria had hampered over the counter sales of its medicines in Australia.
"International markets, and particularly the EU, have been similarly affected by Covid-19.
"But the impact on AFT's financial results appears greater because the prior half year result benefitted from licensees buying stock to fill their distribution networks."
Atkinson said the launch its intravenous Maxigesic IV product in Austria and Germany had also been hampered by Covid-related restrictions on distributors accessing hospitals.
"Group operating profit margins have remained resilient and were lifted by licensing income and some price increases.
"However, rising product and distribution costs that have not yet all been passed on to customers have weighed on international margins."
Atkinson said it had used the time gained from less travel due to Covid to upscale its in-licensing operations and planned to launch more than 30 new products into Australasia over the next 18 months.
In Asia it was establishing new distribution channels for its other the counter products including a trial with T-Mall which it planned to expand and a distribution agreement with ASX-listed McPherson's in Singapore.
"We have continued to advance our programme to commercialise Maxigesic globally, securing new registrations and filling out our global licensee footprint.
"We remain on track to have launched the medicine in 53 countries by the end of the financial year and stand to benefit from product sales, milestone payments and royalties or a share of the profits."
It maintained guidance of $18m to $23m for its full year operating profit for the year to March 30 2022.
Atkinson said it would also consider a dividend policy once it had reached a net debt target of $25m to $30m and its earnings guidance. Its current net debt was $32.4m down from $35.2m at the end of March 2021.
AFT shares were up 15c or 3.23 per cent to $4.80 in early trading but remain down 14.22 per cent or 82.5c over the last year.
