May 29, 2020

AMG Packaging Paper Company Limited (AMG) for the six months ended February 29, 2020 recorded turnover in the amount of $362.81 million, a decline of 6% when compared to $387.70 million the previous year. Turnover for the quarter decreased 1% to total $171.21 million relative to $173.78 million the prior year’s quarter.

Cost of inventories for the six months ended February 29, 2020 totalled $199.82 million, a decrease of 14% relative to the corresponding period of $233.36 million. Direct expenses climbed year over year by 3% to $74.77 million (2019: $72.80 million). Total manufacturing costs for the six months period amounted to $274.59 million, 10% lower than the $306.16 million reported for the corresponding period in 2019. As such, gross profit for the six months ended February 29, 2020 amounted to $88.22 million (2019: $81.54 million). Gross profit for the quarter amounted to $38.80 million, a 15% increase on the $33.87 million reported for 2019.

Administrative expenses for the six months ended February 29, 2020 rose by 18% to close at $46.19 million (2019: $39.17 million), while depreciation rose 10% to $10.94 million (2019: $9.91 million). Finance cost for the period increased to $4.65 million, 93% higher than the $2.41 million booked for the corresponding period in 2019. Directors fees for the period amounted to $5.44 million (2019: $6.05 million). Gain on foreign exchange was $2.18 million relative to a loss of $592,704 reported in the six months ended February 28, 2019.

As such, pre-tax profit closed at $23.19 million, 1% lower than the $23.40 million reported for the first six months ended February 28, 2019. Other income for the six months ended February 29, 2020 amounted to $787,458 (2019: $1.10 million). Following tax charges of $3 million (2019: $2.90 million), net profit amounted to $20.98 million, a 3% decline relative to net profit of $21.60 million in 2019. Net profit for the quarter totalled $6.32 million relative to $5.55 million reported in 2019.

Total comprehensive income for the six months amounted to $20.98 million (2019: $21.60 million) and for the quarter amounted to $6.32 million (2019: $5.55 million).

Earnings per share for the six months ended February 29, 2020 amounted to $0.04 (2019: $0.04) while earnings per share for the quarter amounted to $0.01 (2019: $0.01).  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 May 29, 2020 at a price of $1.55.

Balance Sheet Highlights:

As at February 29, 2020, total assets amounted to $793.35 million, 26% more than the $631.49 million a year ago. This was due to a 232% surge in the Company’s ‘Cash & Cash Equivalents’ which closed the period at $196.46 million (2019: $59.22 million) as well as a 19% increase in AMG’s ‘Property, Plant and Equipment’ to total $379.20 million (2019: $318.82 million).

Shareholder’s equity as at February 29, 2020 totalled $513.49 million (2019: $476.43 million) resulting in a book value per share of approximately $1 (2019: $0.93).

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