Australian Foundation Investment Company (AFIC) reported a net profit of $285 million for the 2025 fiscal year, a 3.9 per cent decrease compared to the previous year, following adjustments to its major bank holdings. The company’s operating revenue also saw a slight decrease of 1.9 per cent, settling at $328.1 million. AFIC is an Australian investment firm that focuses on long-term investments in Australian equities. It provides shareholders with access to a diversified portfolio of some of Australia’s leading companies.
Despite the profit downturn, AFIC has declared a fully franked final dividend of 14.5¢ per share, consistent with the previous year. In addition, a special dividend of 5¢ per share has been announced, supported by capital gains and franking credits generated from the partial sale of its Commonwealth Bank holdings. This brings the total dividends for the year to 31.5¢ per share, a 21 per cent increase from the 26¢ per share distributed in fiscal year 2024.
AFIC’s portfolio achieved a total return of 10.7 per cent, including franking, for the year ending June 30. However, this underperformed the S&P/ASX 200 Accumulation Index, which posted a return of 15.1 per cent during the same period. The company attributed this underperformance to core holdings such as CSL, ARB Corporation, and Reece, in addition to having limited exposure to gold stocks, which saw substantial gains of 59.6 per cent.
Net tangible assets before tax and the final dividend increased to $8.33 per share, up from $7.88 the previous year. The final and special dividends are scheduled to be paid on August 28 to shareholders registered as of August 6, with shares trading ex-dividend from August 5.
