November 29, 2023
AMG Packaging & Paper Company Limited (AMG) for the year ended August 31, 2023, reported a 2% increase in revenue totalling $1.01 billion compared to $995.70 million in the corresponding period last year. Revenue for the fourth quarter had an 11% decrease to close at $230.27 million compared to $257.32 million for the comparable quarter of 2022.
Cost of sales amounted to $690.35 million (2022: $712.05 million), this represents a decrease of 3% year over year. Consequently, gross profit increased by 13% to $321.76 million compared to $283.65 million for the year ended August 31, 2022. The company booked gross profit of $87.97 million for the fourth quarter versus $85.27 million reported for the similar quarter of 2022.
Total expenses for the year ended August 31, 2023, amounted to $180.97 million, a 22% increase relative to $148.45 million reported in 2022. This was largely due to administrative expenses, which increased by 23% to close at $128.65 million (2022: $104.60 million) followed by depreciation, which increased by 42% from $30.02 million in 2022 to $42.60 million in the period under review.
Operating profit for the year ended August 31, 2023, amounted to $140.79 million, a 4% increase relative to $135.20 million reported in 2022. Operating profit for the fourth quarter amounted to $38.32 million (2022: $41.84 million). Finance costs totalled $8.00 million, an 8% decrease from the corresponding period last year (2022: $8.70 million).
Pretax profit for the year ended August 31, 2023, amounted to $133.00 million, an 8% increase relative to $123.13 million reported in 2022. Pretax profit for the fourth quarter amounted to $30.28 million (2022: $29.48 million).
Taxation for the year ended August 31, 2023, had a 140% increase to reach $43.61 million (2022: $18.19 million). Net profit for the year amounted to $89.39 million, a 15% decrease from the $104.93 million reported in 2022. For the fourth quarter, net profit was $14.59 million (2022: $24.77 million).
Earnings per share (EPS) for the year amounted to $0.17 (2022: $0.20), while EPS for the quarter totalled $0.03 (2022: $0.05). The number of shares used in these calculations was 511,894,285.
Notably, AMG’s stock price closed the trading period on November 28, 2023, at a price of $2.15 with a corresponding P/E ratio of 12.31x.
Balance Sheet Highlights:
The company’s assets decreased 5% to total $1.64 billion (2022: $1.73 billion). This downward movement was largely due to inventories, which fell by 60% to $156.05 million (2022: $393.73 million) tempered by a 142% uptick in cash & cash equivalents, which amounted to $296.71 million (2022: $122.52 million).
Shareholder’s equity was $1.27 billion (2022: $1.18 billion), representing a book value per share of $2.49 (2022: $2.31).
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