January 16, 2024
AMG Packaging & Paper Company Limited (AMG) for the first quarter ended November 30, 2023, reported a 7% increase in revenue totalling $272.49 million compared to $254.27 million in the corresponding three months last year.
Total manufacturing costs amounted to $170.87 million (2022: $180.86 million), this represents a decrease of 6% year over year. Consequently, gross profit increased by 38% to $101.62 million compared to $73.41 million for the first quarter ended November 30, 2022.
Total expenses for the first quarter amounted to $50.05 million, a 13% increase relative to $44.10 million reported in 2022. This was largely due to administrative expenses, which increased by 21% to close at $32.31 million (2022: $26.63 million), followed by depreciation, which increased by 26% from $10.16 million in 2022 to $12.82 million for the three-month period.
Operating profit for the three months amounted to $51.56 million, a 76% increase relative to $29.31 million reported in 2022.
Other income soared to $2.80 million from $903 reported in the corresponding period last year.
Pretax profit for the first quarter ended November 30, 2023, amounted to $54.36 million, an 85% increase relative to $29.31 million reported in 2022.
Taxation for the three months had a 192% increase to reach $14.50 million (2022: $4.97 million).
Net profit for the three months amounted to $39.86 million, a 64% increase from the $24.34 million reported in 2022.
Earnings per share (EPS) for the three months amounted to $0.08 (2022: $0.05). The twelve-month trailing EPS was $0.20, and the number of shares used in these calculations was 511,894,285.
Notably, AMG’s stock price closed the trading period on January 15, 2024, at a price of $3.01 with a corresponding P/E ratio of 14.69x.
Balance Sheet Highlights:
The company’s assets totalled $1.82 billion (2022: $1.58 billion). The increase in the company’s asset base was primarily due to cash and cash equivalents, which grew by 490% to $361.12 million (2022: $61.25 million).
Shareholder’s equity was $1.31 billion (2022: $1.21 billion), representing a book value per share of $2.56 (2022: $2.36).
Disclaimer:
Analyst Certification – The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure – The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
