AMG books 77% increase in profit for year ended August 2022

October 14, 2022


AMG Packaging & Paper Company Limited (AMG)

Unaudited Financials for the year ended August 31, 2022:

AMG Packaging & Paper Company Limited (AMG) for the year ended August 31, 2022 reported a 41% increase in revenue to $995.70 million (2021: $705.91 million). Revenue for the quarter increased by 31% to $257.32 million relative to $197.02 million reported the previous year.

Cost of Inventories increased by 50% for the period to $557.13 million (2021: $371.75 million). In addition, direct expenses increased by 28% to $165.54 million (2021: $128.84 million).

Gross profit rose year-on-year by 33%, from $205.32 million in 2021 to $273.04 million in 2022. Gross profit for the fourth quarter improved from $55.16 million in 2021 to $74.66 million, a 35% increase year over year.

Total expenses increased by 7% for the period in review to $150.20 million, up from $140.64 million booked for the year ended August 2021. The increase was attributed to a 11% increase in administrative expenses to $96.36 million from $86.90 million in the same period last year. Total expenses for the quarter increased 17% to close at $45.19 million (2021: $38.71 million).

Other income, for the year ended August 31, 2022, amounted to $290,357 (2021: $4.42 million). Profit before tax for the period rose by 78% to $123.13 million (2021: $69.09 million). Profit before tax for the quarter totalled $29.47 million, which increased by 44% relative to $20.50 million booked for the corresponding quarter of 2021.

The Company incurred a tax expense of $15.76 million for the twelve months relative to $8.50 million for the corresponding period of 2021. Net profit amounted to $107.37 million, a 77% increase above the $60.59 million recorded for the corresponding period in the prior year. Net profit for the quarter amounted to $27.20 million versus $18.003 million booked for the comparable period in 2021, a 51% increase.

Earnings per share (EPS) for the twelve months totalled $0.21 relative to an EPS of $0.12 booked twelve months prior. Earnings per share for the quarter amounted to $0.05 compared to an EPS of $0.04 recorded in the prior comparable period. The number of shares used in the calculation was 511,894,285 units. Notably, AMG’s stock price closed the trading period on October 13, 2022 at a price of $3.51 with a corresponding P/E of 16.73 times.


Balance Sheet Highlights:

The Company, as at August 31, 2022, recorded total assets of $1.12 billion (2021: $906.11 million). Notably, ‘Cash & Cash Equivalents’ amounted to $122.52 million (2021: $130.57 million). ‘Property, Plant and Equipment’ increased to $482.27 million (2021: $361.80 million).

Total Stockholders’ equity closed at $715.31 million (2021: $607.94 million); this resulted in a book value of $1.4 (2021: $1.19).




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