January 16, 2024
AMG Packaging & Paper Company Limited (AMG) for the first quarter ended November 30, 2023, reported a 7% increase in revenue totalling $272.49 million compared to $254.27 million in the corresponding three months last year.
Total manufacturing costs amounted to $170.87 million (2022: $180.86 million), this represents a decrease of 6% year over year. Consequently, gross profit increased by 38% to $101.62 million compared to $73.41 million for the first quarter ended November 30, 2022.
Total expenses for the first quarter amounted to $50.05 million, a 13% increase relative to $44.10 million reported in 2022. This was largely due to administrative expenses, which increased by 21% to close at $32.31 million (2022: $26.63 million), followed by depreciation, which increased by 26% from $10.16 million in 2022 to $12.82 million for the three-month period.
Operating profit for the three months amounted to $51.56 million, a 76% increase relative to $29.31 million reported in 2022.
Other income soared to $2.80 million from $903 reported in the corresponding period last year.
Pretax profit for the first quarter ended November 30, 2023, amounted to $54.36 million, an 85% increase relative to $29.31 million reported in 2022.
Taxation for the three months had a 192% increase to reach $14.50 million (2022: $4.97 million).
Net profit for the three months amounted to $39.86 million, a 64% increase from the $24.34 million reported in 2022.
Earnings per share (EPS) for the three months amounted to $0.08 (2022: $0.05). The twelve-month trailing EPS was $0.20, and the number of shares used in these calculations was 511,894,285.
Notably, AMG’s stock price closed the trading period on January 15, 2024, at a price of $3.01 with a corresponding P/E ratio of 14.69x.
Balance Sheet Highlights:
The company’s assets totalled $1.82 billion (2022: $1.58 billion). The increase in the company’s asset base was primarily due to cash and cash equivalents, which grew by 490% to $361.12 million (2022: $61.25 million).
Shareholder’s equity was $1.31 billion (2022: $1.21 billion), representing a book value per share of $2.56 (2022: $2.36).
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