Date: January 15, 2018
For the three months ended November 30, 2017:
AMG Packaging and Paper Company Limited recorded Turnover in the amount of $193.14 million, a growth of 24% when compared to $155.38 million the previous year.Cost of Inventories totaled $115.40 million, an increase of 48% relative to the corresponding period in the prior financial year of $77.75 million. Direct Expense climbed year over year by 12% to $35.05 million (2016: $31.34 million). Total Manufacturing Costs for first quarter amounted to $150.45 million, 38% higher than the $109.09 million reported for the first quarter of 2016. As such Gross Profit amounted to $42.69 million (2016: $46.29 million).
The company reported that “The demand for paper rolls on the world market has significantly increased riven up the cost of paper rolls. Presently, paper cost is approximately 30% higher than at the same period last year. This has reflected negatively as seen in the financials.”
Administrative Expenses grew by 14% to close at $19.91 million (2016:$17.47 million), while Depreciation climbed 30% to $7.3 million (2016: $5.62 million). Finance Expense for the period declined to $2.43 million, 18% lower than the $2.96 million booked for the first quarter of 2016. Directors Fees for the period amounted to $2.60 million (2016: $1.30 million).
As such, Pre-tax Profit closed at $10.44 million, 45% less than the $18.94 million reported for the first three months ended November 30, 2016. Following tax charges of $1.54 million (2016: $2.54 million), Net Profit Attributable to Shareholders amounted to $9.73 million, a decline of 46% relative to net profit of $18.17 million in 2016.
Earnings per share for the period amounted to $0.02 (2016: $0.4). The twelve month trailing EPS amounted to $0.06. 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, 2018 at a price of $2.62.
The company outlined that “the closing down of the Toilet Paper factory got underway during this quarter and the associated costs continue to impact profitability.”
Balance Sheet Highlights:
As at November 30, 2017, Total Assets amounted to $708.15 million, 6% more than the $667.24 million a year ago. The main contributor to the increase in AMG’s total asset base was cash and bank balances which totaled $44.24 million (2016: $28.68 million). Property, Plant & Equipment amounted to $381.82 million, 25% above the $306.08 million posted a year ago.
Shareholder’s Equity as at November 30, 2017 totaled $494.40 million (2016: $439.34 million) resulting in a book value per share of approximately $0.97 (2016: $0.86).
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