Date: July 16, 2018
AMG Packaging and Paper Company Limited (AMG), for the nine months ended May 2018 recorded Turnover in the amount of $539.02 million (2017: $472.37 million), an increase of $66.65 million when compared to that recorded the year prior. For the third quarter, Turnover totaled $195.09 million up 17% from the $166.06 million in 2017.
Total manufacturing costs amounted to $417.26 million, an increase of 28% relative to the corresponding period in 2017 of $326.21 million. Cost of inventories increased by 30% to $319.12 million (2017: $245.54 million) while direct expenses rose by 22% to total $98.14 million (2017: $80.67 million). Total Manufacturing Cost for the third quarter amounted to $155.72 million up 36% relative to the $114.62 million booked in 2017.
Consequently, Gross Profit for the nine months declined by 17%, amounting to $121.77 million, down from $146.16 million in the corresponding period of 2017, while for the third quarter, gross profit closed at $39.37 million (2017: $51.44 million), a 23% dip.
Administrative expenses increased by 11% for the period to close at $57.47 million (2017: $51.80 million). Financial expenses for the period decreased by 19% to $4.01 million relative to $4.93 million in 2017 whilst Depreciation Expense recorded an 18% increase to $13.71 million (2017: $11.61 million). In addition, Director’s Fees amounted to $8.91 million relative to $6.22 million in 2017.
As such, Pre-tax profit closed at $37.67 million for the nine months, 47% less than the $71.60 million booked for the corresponding period in 2017.
Including ‘Other Income’ of $1.76 million (2017: $3.74 million), Net Profit amounted to $39.43 million when compared to 2017’s $68.55 million. For the third quarter, Net Profits reported were $12.76 million down 45% from the $23.03 million in 2017.
Consequently earnings per share for the nine months amounted to $0.08 (2017: $0.13). EPS for the quarter amounted to $0.025 (2016:$0.045). The twelve months trailing LPS is $0.002. The total number of shares used in this calculation was 511,894,285 units. AMG’s stock price last traded on July 13, 2018 at $2.01.
AMG noted, “The closing down of the Toilet Paper factory has significantly affected our performance year to date. Majority of these costs are now booked. The increase costs of paper continues to affect our performance and there will be price adjustments on our products in short order. Furthermore, the management team continues the drive to contain costs in these challenging manufacturing times.”
Balance Sheet Highlights:
As at May 31, 2018, Total Assets amounted to $723.91 million, 14% more than its value a year ago (2017: $637.10 million). This increase in total assets was driven mainly by an increase in ‘Cash & Cash Equivalents’, which totaled $76.17 million (2017: $13.20 million).
Shareholder’s Equity as at May 31, 2018 totaled $449.64 million (2017: $419.52 million) resulting in a book value per share of approximately $0.88 (2017: $0.82).
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