April 15, 2021
AMG Packaging Paper Company Limited (AMG) for the six months ended February 28, 2021 recorded turnover in the amount of $338.40 million, a decline of 7% when compared to $362.81 million the previous year. Turnover for the quarter fell 4% to total $164.54 million relative to $171.22 million the prior year’s quarter.
Cost of inventories for the period totalled $183.84 million, an 8% contraction relative to the corresponding period of $200.14 million. Direct expenses fell year over year by 16% to $62.32 million (2020: $74.77 million). Total manufacturing costs for the six months period amounted to $246.15 million, 10% lower than the $274.61 million reported for the corresponding period in 2020. As such, gross profit for the six months ended February 28, 2021 amounted to $92.25 million (2020: $88.21 million). Gross profit for the quarter amounted to $39.66 million, a 3% increase on the $38.67 million reported for 2020.
Administrative expenses for the six months ended February 28, 2021 fell by 6% to close at $43.37 million (2020: $46.18 million), while depreciation rose 13% to $12.33 million (2020: $10.94 million). Finance cost for the period decreased to $4.15 million, 11% less than the $4.65 million booked for the corresponding period in 2020. Directors’ fees for the period amounted to $5.44 million, this remained the same year over year. Loss on foreign exchange was $2.29 million relative to a gain of $2.18 million reported in the six months ended February 29, 2020.
As such, pre-tax profit closed at $20.70 million, 11% lower than the $23.21 million reported for the first six months ended February 29, 2020. Other income for the period amounted to $3.18 million (2020: $839,678). Tax charges amounted to $2.985 million (2020: $2.997 million), net profit amounted to $20.89 million, a 1% decline relative to net profit of $21.05 million in 2020. Net profit for the quarter totalled $6.50 million relative to $6.29 million reported in 2020.
Total comprehensive income for the six months amounted to $20.89 million (2020: $21.05 million) and for the quarter amounted to $6.50 million (2020: $6.29 million).
Earnings per share for the six months ended February 28, 2021 amounted to $0.04 (2020: $0.04) while earnings per share for the quarter amounted to $0.01 (2020: $0.01). The twelve-month trailing EPS amounted to $0.11. The number of shares used in our calculations amounted to 511,894,285 units. Notably, AMG’s stock price closed the trading period on April 14, 2021 at a price of $1.82 with a corresponding P/E of 16.62 times.
Balance Sheet Highlights:
As at February 28 2021, total assets amounted to $808.66 million, 2% more than the $793.13 million a year ago. This was due to ‘Construction work in progress’ which closed the period at $49.35 million (2020: nil) as well as a 5% increase in AMG’s ‘Inventories’ to total $120.28 million (2020: $114.12 million).
Shareholder’s equity as at February 28, 2021 totalled $569.62 million (2020: $513.56 million) resulting in a book value per share of approximately $1.11 (2020: $0.98).
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