Australian Foundation Investment Company Limited Analysis

Overview

Australian Foundation Investment Company Limited specializes in investing in Australian equities. The Company has a diverse portfolio of 75 Australian companies. The Company follows a dividend reinvestment plan which allows investors to cost effectively put their dividends back into the Company.

The company focuses on investing in Australian companies with assets, brands and/or business footprints that can withstand the business cycles. The Company also looks for management and Board strength and for sound, disciplined financial metrics covering returns on investment, profit margins, cash flow and gearing.

Australian Foundation Investment Company is listed on NZX under the code of AFI since August 1996. It is also listed on ASX. AFI has completed a number of Share Purchase Plans during the years.

Performance

The following information was extracted from Australian Foundation Investment Company Limited's Full Year Results, released 28 July 2025:

Results for Announcement to the Market

• Net Profit was $285.0 million, down 3.9% from the prior year.
• Net Profit attributable to members (excluding minority interests) was $284.9 million, down 3.8% from the prior year.
• Revenue from operating activities was $328.1 million, down 1.9% from the prior year.
• The Management Expense Ratio (“MER”) calculated as the net expenses of managing the Company as a percentage of the average value of its investments including cash over the year, was 0.16% for the year (2024: 0.15%).
• Net tangible assets as at 30 June 2025, before allowing for the final dividend and before the provision for deferred tax on unrealised gains in the investment portfolio were $8.33 per share (2024: $7.88).
• A fully franked final dividend of 14.5 cents per share, the same as last year’s final dividend will be paid on 28 August 2025 to shareholders on the register on 6 August 2025. Shares are expected to trade ex-dividend on 5 August 2025.