April 14, 2022

AMG Packaging Paper Company Limited (AMG) for the six months ended February 28, 2022 recorded turnover in the amount of $486.81 million, 44% more when compared to $338.40 million the previous year. Turnover for the quarter rose 32% to total $216.81 million relative to $164.54 million the prior year’s quarter.

Cost of inventories for the period totalled $272.72 million, a 49% increase relative to the corresponding period of $183.63 million. Direct expenses rose year over year by 27% to $78.81 million (2021: $62.21 million). Total manufacturing costs for the six months period amounted to $351.53 million, 43% more than the $245.85 million reported for the corresponding period in 2021. As such, gross profit for the six months ended February 28, 2022 amounted to $135.28 million (2021: $92.56 million). Gross profit for the quarter amounted to $61.37 million, a 54% increase on the $39.90 million reported for 2021.

Administrative expenses for the six months ended February 28, 2022 grew by 7% to close at $46.19 million (2021: $43.29 million), while depreciation rose 11% to $13.71 million (2021: $12.33 million). Finance cost for the period decreased to $3.59 million, 13% less than the $4.15 million booked for the corresponding period in 2021. Directors’ fees for the period amounted to $6 million (2021: $5.44 million). Gain on foreign exchange was $578,608 relative to a loss of $2.29 million reported in the six months ended February 28, 2021.

As such, pre-tax profit closed at $66.37 million, 215% higher than the $21.07 million reported for the first six months ended February 2021. Other income for the period amounted to $269,980 (2021: $3.18 million). Tax charges amounted to $13.49 million (2021: $2.99 million), net profit amounted to $53.15 million, a 150% growth relative to net profit of $21.28 million in 2021. Net profit for the quarter totalled $17.88 million relative to $7 million reported in 2021.

Earnings per share for the six months ended February 28, 2022 amounted to $0.10 (2021: $0.04) while earnings per share for the quarter amounted to $0.03 (2021: $0.01).  The twelve-month trailing EPS amounted to $0.18. 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, 2022 at a price of $3.67 with a corresponding P/E of 20.32 times.

Balance Sheet Highlights:

As at February 28 2022, total assets amounted to $978.40 million, 21% more than the $809.17 million a year ago. This was due to ‘Property, Plant & Equipment’ which closed the period at $468.95 million (2021: $367.55 million) as well as a 72% increase in AMG’s ‘Inventories’ to total $206.94 million (2021: $120.28 million).

Shareholder’s equity as at February 28, 2022 totalled $661.10 million (2021: $570 million) resulting in a book value per share of approximately $1.29 (2021: $1.11).

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