July 16, 2024

AMG Packaging & Paper Company Limited(AMG)

Unaudited financials for the nine months ended May 31, 2024:

AMG Packaging & Paper Company Limited (AMG) reported a 2% decrease in revenue totaling $764.93 million for the nine months ended May 31, 2024, compared to $781.83 million in the corresponding period last year. Revenue for the third quarter was also down 14%, closing at $242.43 million compared to $281.02 million for the comparable quarter of 2023.

AMG Packaging & Paper Company Limited’s (AMG) total Manufacturing Costs amounted to $478.66 million (2023: 548.06 million), a decrease of 13% year over year. Management strategic cost management led to a 22% increase in gross Profit to $286.27 million compared to $233.78 million for the nine months ended May 31, 2023. The company booked a gross Profit of $88.82 million for the third quarter versus $88.57 million reported for the similar quarter of 2023.

Administrative expenses increased by 16% to close at $97.69 million (2023: $84.12 million), while Depreciation increased by 25% from $31.73 million in 2023 to $39.52 million in the period under review. As a result, total expenses for the nine months ended May 31, 2024, amounted to $148.72 million, a 13% increase relative to $131.48 million reported in 2023.
Operating Profit for the nine months ended May 31, 2024, showed a significant increase, amounting to $137.55 million, a 34% rise from the previous year.

The third quarter also saw a healthy Operating Profit of $42.03 million (2023: $44.88 million). However, other income saw a substantial increase, totaling $9.53 million, a 3753% rise from the previous year’s corresponding period.

Pretax Profit for the nine months ended May 31, 2024, showed a significant increase, amounting to $147.08 million, a 43% rise from the previous year. The third quarter also saw a healthy Pretax Profit of $46.91 million (2023: $44.90 million).

Taxation for the nine months ending May 31, 2024, had a 43% increase to $39.89 million (2023: $27.92 million). Net Profit for the nine months amounted to $107.19 million, a 44% increase from the $74.64 million reported in 2023. For the third quarter, Net Profit was $35.15 million (2023: $32.40 million).

Consequently, Earnings per share for the nine months amounted to $0.21 (2023: EPS: $0.15), while Earnings per share for the quarter totaled $0.07 (2023: EPS: $0.06). The twelve-month trailing EPS was $0.24, and the number of shares used in these calculations was 511,894,285.

Notably, AMG’s stock price closed the trading period on July 16, 2024, for $3.20, with a corresponding P/E ratio of 13.43x.

Balance Sheet Highlights

The company’s assets totaled $1.67 billion (2023: $1.63 billion). The increase in the company’s asset base is attributed to a 21% increase in “Inventories” year over year, ending the nine months at $217.86 million (2023: $179.83 million), “Cash & Cash Equivalents” increasing 15% year over year ending the nine months at $307.01 million (2023: $266.44 million) and “Trade and other receivables” rising 3% year over year and ending the period at $120.33 million (2023: $116.73 million).

Shareholder’s equity was $1.33 billion (2023: $1.26 billion), representing a book value per share of $2.60 (2023: $2.46). The increase in shareholder’s equity, attributed to the growth in the “Retained Earning” account, which ended the nine-month period at $684.08 million (2023: $613.26 million), represents a 12% year-over-year growth, instilling optimism in the company’s future.

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