AMG reports 12% increase in six months revenue

Date: April 16, 2018

AMG Packaging Paper Company Limited (AMG), for the six months ended February 28, 2018 recorded Turnover in the amount of $343.93 million, a growth of 12% when compared to $306.31 million the previous year period. For the second quarter revenues climbed from $153.40 million to $162.54 million, a 6% increase.

Cost of Inventories totaled $198.11 million, up 26% relative to the corresponding period in the prior financial year of $157.05 million. Direct Expense climbed year over year by 16% to $63.38 million (2016: $54.54 million). Total Manufacturing Costs for the six months amounted to $261.49 million, 24% higher than the $211.59 million reported for the corresponding period of 2017.

As such Gross Profit amounted to $82.43 million (2017: $94.72 million), while for the second quarter gross profit went down by 25% to end the period at $33.37 million (2017: $44.57 million).

Administrative Expenses grew by 20% to close at $40.15 million (2017:$33.32 million), while Finance Expense for the period declined to $2.20 million, 25% lower than the $2.94 million booked for the first six month in the prior financial year. Directors Fees for the period amounted to $5.74 million (2017: $3.84 million). Depreciation climbed 18% to $9 million compared to $7.59 million reported a year earlier.

As such, Pre-tax Profit closed at $25.35 million, 46% less than the $47.03 million reported for the first six months ended February 28, 2017. AMG booked Other Income of $1.70 million relative to $2.60 million for the comparable period in 2017.

Income from continuing operations amounted to $27.06 million, a decline of 41% relative to net profit of $45.52 million in 2017. “Net loss on operations/ Disposal of assets” amounted to $35.95 million compared to a loss of $18.54 million a year earlier. As such Total Comprehensive Income for the period amounted to $8.89 million relative to a profit of $26.98 million.

Earnings per share for the period amounted to $0.02 (2017: $0.05). The twelve month trailing EPS amounted to $0.0014. The number of shares used in our calculations amounted to 511,894,285 units. Notably, AMG’s stock price closed the trading period on April 13, 2018 at a price of $2.05.

Balance Sheet Highlights:

As at February 28, 2018, Total Assets amounted to $669.07 million, 3% less than the $719.83 million a year ago. The main contributor to the decrease in AMG’s total asset base was inventories which closed at $133.30 million (2017: $272.25 million). This was however tempered by a jump in Accounts Receivables Net Allowances which totaled $135.10 million (2017: $86.52 million). ‘Assets from discontinued Operations – Held for Sale’ amounted to $44.83 million for the current period from nil.

Shareholder’s Equity as at February 28, 2018 totaled $475.78 million (2017: $405.16 million) resulting in a book value per share of approximately $0.93 (2017: $0.79).


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