AFIC posts 4% profit drop, declares special dividend
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The news: The Australian Foundation Investment Company (AFIC) has reported a fall in net profit and revenue for the 2025 financial year, but declared a special dividend.
The numbers: Net profit fell 3.9% year on year to $285 million as revenue from operating activities fell 1.9% to $328.1 million.
Net tangible assets at 30 June 2025 were $8.33 per share, an improvement on $7.88 in 2024.
The company declared a fully franked final dividend of 14.5 cents per share, the same as the 2024 final dividend, as well as a special dividend of 5 cents per share.
The total dividend for FY25 to 31.5 cents per share fully franked, an improvement on the FY24 full franked dividend of 26 cents.
The context: During the year, AFIC exited from Mineral Resources, Ramsay Health Care and Domino’s Pizza Enterprises after identifying “a significant deterioration in future growth prospects”.
This is due to structural industry challenges facing Ramsay and Domino’s while competitive intensity for Mineral Resources and Domino’s has increased.
AFIC has also been reducing its holdings in Commonwealth Bank as it views its current valuation as “extreme”.
A majority of purchases were to increase holdings in BHP, Goodman Group, ResMed, NEXTDC, Wisetech and Cochlear. Positions were also initiated in BlueScope Steel, Sigma Healthcare, Telix Pharmaceuticals and Worley.
The source: ASX
