October 3, 2020
AMG Packaging & Paper Company Limited (AMG)
Unaudited Financial Statements Year Ended August 31, 2020:
AMG Packaging and Paper Company Limited (AMG) for the year ended August 31, 2020 recorded turnover in the amount of $720.45 million (2019: $762.30 million), a 5% decrease when compared to 2019. Turnover for the quarter increased by 7%, moving from $174.68 million in 2019 to $186.95 million for the period under review.
Total manufacturing costs amounted to $538 million, which represents a 9% decrease in comparison to the $594.33 million booked in the previous year. Consequently, gross profit amounted to $182.45 million, 9% up from $167.97 million reported the prior year.
AMG booked a gain on foreign exchange of $5.65 million relative to a gain of $2.66 million in 2019.
Other income for the period totalled $4.10 million relative to $14.10 million in 2019, a 71% decrease year on year.
Administrative expenses rose by 4% to close at $87.40 million versus $84.20 million reported in 2019. Directors fees totalled $10.88 million (2019: $11.41 million). Finance costs increase year over year by 77% to a total of $9.06 million (2019: $5.13 million). In addition, Depreciation closed at $23.43 million (2019: $19.76 million).
As such, profit before tax closed at $57.33 million for 2020, 14% more than the $50.13 million booked last year. Profit before tax for the quarter increased by 57%, moving from $10.43 million in 2019 to $16.36 million. Taxes of $5.40 million was reported compared to a tax charge of $5.09 million in 2019. Net Profit amounted to $56.02 million compared to $59.14 million in 2019, a 5% decrease.
Earnings per share (EPS) for the year amounted to $0.11 versus an EPS of $0.12 for 2019. The number of shares used in our calculations amounted to 511,894,285 units. AMG closed the trading period on November 02, 2020 at $1.62.
Management has indicated, “For the 2020 year end we have seen sales falling in comparison to the previous year. The downturn is mainly because of the slowdown in the economy due to the COVID-19 Pandemic. We were able to improve drastically on our manufacturing costs, which helped to increase our bottom line.”
Balance Sheet Highlights:
As at August 31, 2020, total assets amounted to $821.31 million, compared to its value of $712.32 million a year ago, a 15% increase year on year. This increase was attributed to a 187% climb in ‘Cash & Cash Equivalents’ which amounted to $259.32 million relative to $90.47 million in 2019. The upward movement was tempered by a 40% decrease in ‘Inventories’ which totalled $107.43 million (2019: $179.01 million).
Shareholder’s Equity as at August 31, 2020 totalled $548.53 million (2019: $502.75 million) resulting in a book value per share of $1.07 (2019: $0.98).
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.