January 13, 2021
AMG Packaging Paper Company Limited (AMG), for the three months ended November 30, 2020, recorded Turnover in the amount of $173.86 million, a decline of 9% when compared to $191.60 million booked the previous year’s corresponding quarter.
Cost of Inventories totalled $94.24 million, a decrease of 13% relative to $108.53 million booked in the prior year’s corresponding quarter. Direct Expenses declined year over year by 19% to $27.03 million (2019: $33.54 million). Thus, Total Manufacturing Costs for the first quarter amounted to $121.27 million, 15% less than the $142.07 million reported for the first quarter of 2019. As such, Gross Profit amounted to $52.59 million (2019: $49.53 million).
Administrative Expenses fell by 8% to close at $20.80 million (2019: $22.51 million), while Depreciation grew 18% to $6.26 million (2019: $5.29 million). Finance Expense for the period fell to $2.16 million, 8% lower than the $2.35 million booked for the first quarter of 2019. Directors Fees for the period remained constant at $2.72 million.
Other income closed the period under review at $2.05 million (2019: $249,763).
As such, pre-tax profit closed at $16.53 million, 2% lower than the $16.83 million reported for the first three months ended November 30, 2019. Following tax charges of $2.07 million, (2019: $2.07 million), Net profit amounted to $14.47 million, a 2% decline relative to net profit of $14.76 million reported in the first quarter of 2019.
Earnings per share for the period amounted to $0.028 (2019: $0.029). The twelve-month trailing EPS amounted to $0.11. The number of shares used in our calculations amounted to 511,894,285 units. Notably, AMG’s stock price closed the trading period on January 12, 2021 at a price of $1.66 with a corresponding P/E of 15.20 times.
The Company noted, “COVID-19 pandemic has significantly impacted our customers’ business and in turn has reduced the demand for our products. The company has taken steps to reduce its operating costs. These have resulted in pre-tax profit in the current financial year being at the same level as the previous year (pre-COVID). AMG will continue to navigate its way through the pandemic and strive to remain profitable.”
Balance Sheet Highlights:
As at November 30, 2020, Total Assets amounted to $812.35million, 11% more than the $729.77million a year ago. This was due to a 59% climb in the company’s Cash & Cash Equivalents which closed the period at $215.15 million (2019: $135.23 million). Also, ‘Inventories’ contributed to the growth closing at $128.63million (2019: $122.28million).
Shareholder’s Equity as at November 30, 2020 totalled $563.19 million (2019: $517.51million) resulting in a book value per share of approximately $1.10 (2019: $1.01).
Disclaimer:
Analyst Certification -The views expressed in this research report accurately reflect the personal views of Mayberry Investments Limited Research Department about those issuer (s) or securities as at the date of this report. Each research analyst (s) also certify that no part of their compensation was, is, or will be, directly or indirectly, related to the specific recommendation(s) or view (s) expressed by that research analyst in this research report.
Company Disclosure -The information contained herein has been obtained from sources believed to be reliable, however its accuracy and completeness cannot be guaranteed. You are hereby notified that any disclosure, copying, distribution or taking any action in reliance on the contents of this information is strictly prohibited and may be unlawful. Mayberry may effect transactions or have positions in securities mentioned herein. In addition, employees of Mayberry may have positions and effect transactions in the securities mentioned herein.
