Why Did AMCIL’s Profit Rise While Its Portfolio Lagged the ASX 200?

Solid Profit Growth Amid Market Headwinds

AMCIL Limited has delivered a notable 14.8% increase in its half-year profit, reaching $4.1 million for the six months ended 31 December 2025. This improvement was primarily driven by heightened activity in its options portfolio, which contributed to a modest rise in revenue from operating activities to $5.0 million, up 0.9% from the prior corresponding period.

Despite this profit growth, AMCIL’s investment portfolio faced a challenging environment. The company’s six-month portfolio return was negative 7.0%, significantly trailing the S&P/ASX 200 Accumulation Index’s positive 4.2% return over the same period. Over the full year, the portfolio’s return was down 9.0%, compared to the benchmark’s strong 11.5% gain.

Dividend Steadfast Amid Volatility

Reflecting confidence in its earnings, AMCIL declared an interim dividend of 1.0 cent per share, fully franked at 30%, unchanged from the previous year. This steady payout, combined with the final and special dividends paid earlier, results in a yield of 9.2% including franking credits based on the company’s share price at the end of December.

The company also continues to offer a Dividend Reinvestment Plan and a Dividend Substitution Share Plan, allowing shareholders to reinvest dividends at no discount, supporting long-term shareholder value.

Portfolio Strategy and Market Positioning

AMCIL’s portfolio remains focused on high-quality companies with long-term growth prospects, including significant holdings in CSL, Macquarie Group, BHP, and Woolworths Group. Recent portfolio adjustments saw the addition of Woolworths, Nanosonics, Woodside Energy Group, and PEXA, while the company fully exited its positions in major banks such as Westpac and National Australia Bank due to valuation concerns.

The company’s cautious stance is underscored by its limited exposure to the resources sector, which has experienced strong momentum but is considered highly cyclical. AMCIL’s overweight positions in sectors like healthcare and technology, which underperformed during the period, contributed to the portfolio’s relative underperformance.

Outlook and Market Conditions

AMCIL’s management highlights the elevated valuations in the market and ongoing geopolitical uncertainties as reasons for maintaining a strong cash position. This liquidity provides flexibility to capitalise on selective buying opportunities as market conditions evolve. The company remains committed to its long-term investment philosophy, balancing quality holdings with prudent portfolio adjustments.

Shareholders are invited to a webcast on 22 January 2026 for a detailed discussion of the results and outlook, signalling AMCIL’s transparent approach to investor communication.