February 25, 2021
Management of AMG Packaging & Paper Company Limited highlighted that the 2020 financial year results were negatively impacted by the effects of the COVID-19 pandemic, notably “Sales were severely affected in the third quarter but recovered somewhat in the fourth quarter. Sales for the year fell by just under 10% from the prior year moving from $762 million in 2019 to $720 million in 2020. Net profit after tax also fell by just under 10%, moving from $59 million in 2019 to $56 million in 2020.”
As it relates to the Company’s fourth-quarter performance, “Revenues increased by 7.02%, moving from $174.68 million to $186.95 million. Total Manufacturing Cost increased by 5.15%, moving from $132.06 million to $138.87 million whilst Profit before Tax increased by 56.89%, moving from $10.43 million to $16.36 million.” The company was able to achieve higher profit before tax compared to the prior year even with lower sales because of the drastic improvement in the manufacturing costs.
AMG’s Balance Sheet shows a cash and cash equivalents increase of 186.61% closing at $259.3 million as compared to $90.5 million 2019. This increase is mainly due to the $100,000,000 bond dated September 2019.
Management noted that, “the Company plans on utilizing the strong cash and cash equivalents position into developing 12 Retirement Crescent. The pandemic had caused the development of 12 Retirement Crescent to delay from 2020 to 2021. A contractor has been chosen and the building of an additional 11,370 square feet began in February 2021.” Furthermore, “the Company also intends to maintain a very liquid position to prepare for unforeseen circumstances and has no immediate plans to begin exporting.”
The long-term outlook for the year 2022 includes increased efficiencies and competitiveness resulting from the current expansion, the purchase of specialised equipment, and increased capital investment.
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