October 21, 2021
AMG Packaging and Paper Company Limited (AMG) for the year ended August 31, 2021, recorded turnover in the amount of $705.91 million (2020: $720.45 million), a 2% decrease when compared to 2020. Turnover for the quarter rose by 5%, moving from $186.95 million in 2020 to $197.02 million for the period under review.
Total manufacturing costs amounted to $500.60 million, which represents a 7% decrease in comparison to the $538 million booked in the previous. Consequently, gross profit amounted to $205.32 million, 13% up from $182.45 million reported the prior year.
AMG booked a loss on foreign exchange of $3.96 million relative to a gain of $5.65 million in 2020.
Other income for the period totalled $6.56 million relative to $4.07 million in 2020, a 61% increase year on year.
Administrative expenses rose by 6% to close at $92.34 million versus $87.40 million reported in 2020. Directors’ fees totalled $11.84 million (2020: $10.88 million). Finance costs declined year over year by 9% to a total of $8.20 million (2020: $9.06 million). Conversely, Depreciation increased and close at $24.31 million (2020: $23.43 million).
As such, profit before tax closed at $69.09 million for 2021, 13% more than the $61.40 million booked last year. Profit before tax for the quarter climbed by 13%, moving from $18.41 million in 2020 to $20.04 million. Taxes of $6.47 million was reported compared to a tax charge of $5.18 million in 2020. Net Profit amounted to $62.63 million compared to $56.21 million in 2020, an 11% improvement year over year.
Earnings per share (EPS) for the year amounted to $0.12 versus an EPS of $0.11 for 2020. The number of shares used in our calculations amounted to 511,894,285 units. AMG closed the trading period on October 20, 2021 at $1.76 with a corresponding P/E ratio of 14.39 times.
Management noted, “There were numerous challenges we faced throughout the year. The Covid-19 pandemic continues to affect our operations particularly the lockdown days and the curfew hours. The dramatic increased in freight cost as well as the shortage of paper on the world market, continues to drive up the cost of paper. AMG’s management team continues to monitor what is happening on the world and local markets.”
Balance Sheet Highlights:
As at August 31, 2021, total assets amounted to $906.13 million, compared to its value of $821.31 million a year ago, a 10% increase year on year. This increase was attributed to a 106% climb in ‘Inventories’ which amounted to $221 million relative to $107.43 million in 2020. The upward movement was tempered by a 50% decrease in ‘Cash & Cash Equivalent’ which totalled $130.57 million (2020: $259.29 million).
Shareholder’s Equity as at August 31, 2021 totalled $609.98 million (2020: $548.73 million) resulting in a book value per share of $1.19 (2020: $1.11).
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